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Customer Data Protection is a Crucial Component in the Evolution of Digital Banking


The Financial Services Authority (OJK) as an independent institution that carries out the task of regulating and supervising the banking industry and protecting banking consumers, has an interest in developing banks to have good performance. The development of Indonesian banking needs to be done carefully so as not to cause turmoil so that banking can grow in a healthy and sustainable manner and be able to provide great benefits for national economic development and public welfare.

It is essential that the banking industry undergoes digital transformation. The public's changing expectations for financial services that are quick, effective, safe, and accessible from anywhere have increased the need for digital acceleration during the last few years. In order to boost their competitiveness, banks are required to make digital transformation a priority and one of their strategies. Along with numerous advances in the banking business that are engaged in digital business strategies, the Financial Services Authority (OJK) thinks that several existing rules need to be further strengthened, especially those connected to information technology in the banking sector.

Regarding the implementation of banks' digital services, which must adhere to a number of regulations, OJK Regulation (POJK) No. 38/POJK.03/2016 concerning the Application of Risk Management in the Use of Information Technology has been regulated.

This includes how the bank recognizes and manages technological risks as well as how its internal audit department and board of directors are able to exercise control over banking technology services.

According to Member of the Board of Commissioners & Executive Head of OJK Banking Supervision, Heru Kristiyana, "POJK No. 12/POJK.03/2021 also rules that require banks that carry out digital services to protect customer data security. Of course, it also provides efforts that contribute to data security, and must have strong and excellent risk management to serve digital transactions safely."

Data, technology, risk management, collaboration, and institutional arrangements are the five (five) essential components of the Banking Digital Transformation Blueprint that must be taken into account during the banking digital transformation process. In the context of accelerated digital transformation, the Blueprint for Digital Banking Transformation will offer a more tangible reference for future banking digitalization as well as a policy response to reduce the numerous risks and obstacles associated with the transformation of digital banking. The adoption of this blueprint is anticipated to promote more resilient, competitive, and beneficial national banking.

Source : ojk.go.id & kontan.co.id

BLUEPRINT FOR DIGITAL TRANSFORMATION IN BANKING.pdf