ASEAN Bankers Association: Traditional Banks Still Have a Crucial Role

Armfalcon.com, JAKARTA — Secretary General of the ASEAN Bankers Association Paul Gwee said traditional banks still have a crucial role in the current era of digital economic advancement.

According to him, traditional banks are currently still capable of acting as institutions that ensure transactions between parties are carried out safely, as well as being the people’s first choice to store their assets as collateral.

“So traditionally, the bank will still be the facilitator to ensure that when a payment is made, the money reaches the customer’s destination. And anyone who makes a transaction at the bank will receive the money safely,” said Paul in Jakarta, Tuesday (9/5/2023 ).

Paul conveyed this at the 2023 Indonesian Digital Financial Economy Festival (FEKDI) which was held on 7-10 May 2023 at the Jakarta Convention Center, Jakarta. In the midst of the emergence of financial technology companies (fintech), the role of banks cannot be replaced at this time.

Paul explained, although at the beginning of the emergence of fintech there was little competition from conventional banks, currently the two types of agencies have tried to work together to build an advanced digital economy in the region.

“When fintech appeared, you know how banks responded. The emergence of fintech at that time was quite challenging for banks, which in my opinion, what they did was good competition. But now there is the development of QR and real time transfers which are collaborations between fintech and banking,” explained Paul.

This year, FEKDI raised the theme Synergy and Innovation of Digital Economy: Fostering Growth. FEKDI 2023 is part of a series of ASEAN Indonesia chairmanship events on the financial track.

This event is a showcase for product and service innovation, as well as digital economic and financial policy synergies as a result of collaboration between Bank Indonesia (BI) and the Ministry of Economy.

source : Between