The Indonesian financial services industry (FSI) is poised for considerable growth and innovation to adapt to the rapidly evolving global business environment.
The robust growth of Indonesia’s financial sector is evidenced by the year-on-year growth of 27.96% in the country’s digital banking transaction volume. reached 4,900.6 trillion rupiah as of January 2023.
Rapid growth is fueled by the convenience of digital payment systems, the ever-expanding digital economy, and the rapid emergence of digital banking.
To realize the full potential of Indonesia’s financial services industry, it is imperative to embrace value chain innovation across the sector.
Value chain innovation, including process optimization and redesign across the value chain, has the potential to transform Indonesia’s digital financial landscape. By leveraging cutting-edge technologies such as artificial intelligence, blockchain and big data analytics, financial institutions can enhance their services, streamline operations and facilitate more efficient, transparent and secure transactions. .
Embracing this transformation has the potential to attract foreign investment, facilitate cooperation with global financial service providers, and ultimately stimulate Indonesia’s economic growth.
Digital Finance in Indonesia: A Platform for Value Chain Innovation
Indonesia’s digital finance sector is emerging as a platform for value chain innovation, and the country’s burgeoning digital economy is reach the rating USD 146 billion by 2025.
Many Indonesian companies are investing in digital technology to improve their value chains and increase efficiency. Digital transformation journey.
Widespread use of smartphones and Internet connectivity 212.9 million users is a key aspect for FSI companies, offering significant opportunities for digital finance solutions.
southeast asia largest economy is embracing digital finance, with a range of services and platforms emerging to serve diverse populations. The rise of digital payment platforms such as GoPay and peer-to-peer lending services demonstrate how digital finance can drive value chain innovation and transform traditional financial ecosystems.
By focusing on innovation across the value chain, Indonesian FSI companies can create a competitive advantage, prepare for long-term success, and adapt to changing market dynamics and consumer preferences. can.
Additionally, implementing value chain innovations will enable FSI firms to offer customized products and services that foster financial inclusion. This strategic approach will enable Indonesia to become a leading global financial services provider.
NEC’s value chain innovation approach
Survey by Asian Development Bank (ADB) highlight Some of the challenges facing Indonesia’s banking and financial industry include the country’s archipelagic geography, limited access to technology, and the digital divide.
These factors are the low penetration rate of banks, financial exclusionAdditionally, skill gaps and poor collaboration between banks and fintech firms hinder innovation within the industry. These barriers often prevent financial institutions from implementing innovative solutions to enhance their services and enter underserved markets.
NEC Value Chain Innovation (VCI) is dedicated to promoting a collaborative approach to problem solving by co-creating innovative solutions with our customers and partners. By leveraging our extensive expertise and resources, NEC empowers all stakeholders to unleash their unique capabilities to develop breakthrough solutions that address real-world challenges.
This approach fosters innovation, resulting in more efficient, robust and sustainable results for all involved. By actively engaging with our customers and partners, NEC VCI demonstrates our commitment to maximizing the innovation potential of the value chain and fostering lasting relationships that drive our business forward.
“Solving market challenges requires collaboration and innovation. NEC’s VCI approach enables Indonesian FSIs to create and develop customized solutions jointly with financial institutions and ecosystem players. A led approach will optimize the value chain, improve efficiency, and promote the adoption of advanced financial services across the country.”
This is especially important as the industry strives to provide accessible services to a diverse population while adapting to the changing demands of the digital age.
“NEC’s strategic investments in global research and development, coupled with our partnerships with fintech companies, provide us with the expertise and resources needed to tackle the unique challenges of Indonesia’s financial sector. Through collaboration, information sharing and breaking down barriers across borders, NEC’s VCI is essential in driving innovation and optimizing the value chain in Indonesia’s FSI,” added Mr Suresh.
This joint approach will enable Indonesian FSIs to embrace digital transformation and navigate the new normal, resulting in better financial inclusion, a better customer experience and a more robust financial ecosystem. .
In a world characterized by VUCA (volatility, uncertainty, complexity and ambiguity), co-creation supported by digital technology represents the future.This is due to the rapid expansion of Indonesia’s digital financial marketis the ideal environment for implementing value chain innovation.
Interested in learning more about how NEC’s value chain innovation can revolutionize Indonesia’s digital financial landscape? Click here to discover the potential benefits of this innovative approach .