The Future of the Financial Industry

Technological advancements are based on how to make it fit so that you don’t realize it so that it becomes a daily part of life. The series of quotes above is a message from one of the inventors of modern technology, Bill Gates. According to the founder of the giant technology company Microsoft this technology can not be avoided and ignored, has become part of people’s daily lives. It’s not only an individual society that is dependent on technology. The industry is now attached to technology. The utilization of technology is considered to be one of the keys to survive an industry amid modernization today.

The financial industry is one that cannot be separated from the use of technology because of its crucial role. This potential was seen by the founders of the start-up company as a golden opportunity. Financial technology or well-known as fintech is often referred to as disruptive innovation. The reason is that disruptive innovation creates new markets with innovation, but can damage conventional markets that were previously running. However, the new market formed is considered to be a golden opportunity to make the industrial and community order in a country better.

A research conducted by Accenture revealed that global investment in the fintech market had tripled from the US $ 928 million to the US $ 2.97 billion. The growth occurred in the period 2008 to 2013 and is predicted to continue to increase in 2018 which is predicted to range from the US $ 6 billion to the US $ 8 billion. In the global market, famous names like Bitcoin and Moneythor already have their fintech market. While in the country, some fintech startup names began to emerge such as Doku, Kesler, Veritrans, and Dimo   Pay.

The service that is the focus of every fintech is different. Some focus as financial service providers, bill payment instruments, and focus on micro-businesses. However, the common thread of all fintech companies is innovative technological solutions in the financial system for consumers. Based on World Bank data in 2014, financial penetration in Indonesia has only reached 35.8% and fintech is considered to be able to play a role in accelerating the penetration of financial services in line with the broadband penetration being promoted by the government.

Financial Industrial Revolution

Some time ago, CEO of Dimo   Pay Brata Rafly, revealed that currently there is a fourth industrial revolution that is melting the boundaries of the digital, physical and biological world. The fourth industrial revolution is based on new technology that has begun to change the entire production and management chain in every branch of industry in the world. In the financial industry, it can be found in the form of financial technology (fintech), which has become increasingly popular lately and is often used by technology and media activists Brata revealed that the fintech industry has the opportunity to bring change to the overall financial industry in Indonesia.

Fintech with a broad market is not limited by companies to choose what financial services will be provided. Fintech is not limited to startups. The company established and not engaged in the financial sector did not rule out the possibility to try out this potential sector. One of the direct agile workings on the sector is the telecommunications operator. In addition to start-ups that are synonymous with technology. The telecommunications industry is an industry that is required to be adaptive to the slightest technological movement.

The telecommunications industry which was saturated with voice and text messaging services began to rise and try the digital market. One of the contents that can be provided is digital financial services. Some research notes that the number of users of banking and cellular services is still far adrift. Banking users are estimated to reach 60-70 million, while unique accounts on mobile reach 160-170 million. The imbalance is a golden opportunity for operators to immediately work on mobile payments. Indosat Ooredoo Group Head of Mobile Financial Services Randy Pangalila revealed that people’s lifestyles are driving increased use of digital payment services.

The enthusiasm of telecommunications operators and startups working on the fintech market can be used as an illustration of the potential of this market, especially if supported by other digital ecosystems.