Bank Digital 101: Ecosystem and Future Prospect

In the last three years, the Indonesian banking industry has been stirred with the rise of digital banks, both in the form of new banks and conversions from existing banks. As a first step, the Government released a new regulation that is expected to accommodate the needs of digital bank players through the Financial Services Authority (OJK).

POJK Number 12/POJK.03/2021 contains various provisions related to the establishment of banks and capital. Among those are the provisions for the establishment of two types of digital banks. First, the establishment of a new bank as a digital bank and second, the transformation of existing commercial banks into digital banks

In addition, the new rules are also to provide clear boundaries regarding the digital banking business considering that this trend is still relatively new in the Indonesian banking industry.