Rapid growth within the Fintech Industry have triggered players to become even more aggressive and innovative in finding ways to compete. Though internal development is important, often the most difficult issues may come externally rather than from within. So, prepare yourself and get informed by knowing what Indonesia’s experts have to say about the 4 challenges presented by the Fintech Start-Up Industry!
Agility is Key
“We see the Fintech Industry not as competition, but as a challenge we must overcome. How can they become capable of what they’re doing, and how conventional banks can do the same”
Being a conventional bank, Bank BTPN is surely faced with challenges in developing their breakthrough digital banking product, Jenius. The Digtial Banking Value Proposition and Product Head of BTPN, Irwan Stujipto Tisnabudi stated “The challenge is how conventional banks like us can keep up and be as agile as Fintech players”
For instance, Tisnabudi admits developing a new product or feature for a Fintech Startup would only take around one week. Meanwhile, conventional banks may take up months of development to launch similar product. “If conventional banks can launch a product within 6 months, that would be exceptional.” he added.
Lack of Centralized Data
As the co-founder of Cicil.co.id, Edward Widjonarko believes the unavailability of centralized data that may be accessed by everyone is a challenge for the industry. According to him, the presence of centralized data would highly help in validating in an individual’s data.
Due to the absence of centralized data, Cicil.co.id have established their own data focusing on student segments. Especially with the presence of advanced technology, data validation process becomes easier. Furthermore, Widjonarko also believes that the presence of technology accelerates data collection and data processing.
Validating Data Efficiently
Adrian A. Gunadi, co-founder and CEO of Investree, also agrees with the benefits presented from current technological advancement in aiding data integration. Moreover, as of today, there are numerous data points from SEMs and individuals that can be maximized.
All the more with the use of advanced technology, data collection processing becomes more efficient and swift. “How can the technology be further utilized to create a more efficient data collection procedure.” Gunadi added.
Is the Current Technology Ready?
“The challenge is actually to understand our user”
As the Co-Founder & CEO of Warung Pintar, Agung Bezharie relays a differing perspective on the challenges exhibited by the Fintech Industry as follows “Actually, the challenge lies within the capability of our technology”
Some of the technological infrastructure he questioned includes whether Indonesia’s 4G network is fast enough, the availability of data streaming, as well as the compatibility of application on stall owner smartphones. He also added that when Indonesia’s technological infrastructure is ready, understanding customers will become simpler.