The rise of fintech in Indonesia is transforming the country’s banking and financial services sector, propelling traditional banks to quicken their pace in digitalization. Meanwhile, fintech companies are facing the challenge of navigating the evolving regulatory landscape. Partner Erwandi Hendarta shares his insights on the rapidly changing fintech landscape in Indonesia in an interview with Asian Legal Business:
- Many traditional banks have evolved into digital banks or have incorporated digital banking products to remain competitive by introducing more efficient digital solutions, including online payments. While fintech has improved financial access and inclusion, it has also challenged traditional banks’ revenue models and regulations.
- With regulations constantly evolving, especially around anti-money laundering, cybersecurity, and data privacy, ensuring compliance while maintaining a smooth user experience can be tough for many fintech companies. However, there are strong signs that regulators are becoming more accepting, embracing, and advanced in keeping up with the fast-paced fintech industry. This presents an opportunity for fintech companies to help shape and influence future regulations.
- AI raises compliance obligations significantly. With AI systems handling a lot of personal data, issues of accountability and liability arise when AI makes automated decisions. Fintech companies must stay updated on regulations and ensure their AI practices meet legal and ethical standards, particularly focusing on transparency and consumer protection.
Read the full article here: ALB ASIA NOVEMBER 2024
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