Optimism on the Rise for the Future of Financial Services

The profound implications of technological transformation are reshaping transaction efficiency and giving rise to a multitude of fresh opportunities within the financial sector, aligning seamlessly with the ever-expanding potential of the digital economy.

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13 Okt 2023 - 16.56
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Optimism on the Rise for the Future of Financial Services

Head of Financial Services Authority Institute Agus Sugiarto (center) talks with CEO of Citibank, N.A., Indonesia (Citi Indonesia) Batara Sianturi (right), and Head of Treasury and Trade Solutions Citi Indonesia Yoanna Darwin on the sidelines of the Treasury Trade and Solutions Conference; The Future of Business: Riding the Digitalization Wave in Jakarta, Thursday (12/10/2023). Photo/JIBI/Bisnis/Himawan L Nugraha

Bisnis, JAKARTA — The profound implications of technological transformation are reshaping transaction efficiency and giving rise to a multitude of fresh opportunities within the financial sector, aligning seamlessly with the ever-expanding potential of the digital economy.

Head of the Financial Services Authority (OJK) Institute Agus Sugiarto pointed out the remarkable growth in the financial services industry, particularly in the realm of financial technology (fintech) and cross-border transactions, marking a significant milestone in Indonesia's digitalization journey. He underscored the importance of fintech advancements in this context.

Moreover, the widespread digitalization has ushered in notable improvements to society's payment system.

During a discussion titled The Future of Business: Riding on The Wave of Digitalization, Treasury and Trade Solutions Conference in Jakarta on Thursday (12/10), Sugiarto noted, "This transaction has occurred at a rapid pace, facilitated by a global payment system that is both efficient and cost-effective while maintaining reliability."

Furthermore, OJK also highlighted the substantial role of e-commerce in accelerating digital trade, with some players in this sector achieving significant technological prowess.

E-commerce's potential to easily venture into the financial sector and disrupt traditional financial institutions has not gone unnoticed. Agus acknowledged this dynamic, highlighting the innovative and appealing digital payment systems.

Citibank N.A., Indonesia (Citi Indonesia) also recognizes the significance of this trend, seeing the digital economy's potential as a catalyst for the country’s economic growth.

With Indonesia playing a pivotal role, contributing up to 40% to the Southeast Asian digital economic market, which was estimated to reach a value of $194 billion in 2022, the nation's digital economy is poised for substantial expansion. Projections suggest that by 2025, it could reach $150 billion, constituting 10% of Indonesia's gross domestic product (GDP).

CEO of Citi Indonesia Batara Sianturi expressed the company's unwavering commitment to harnessing the digital potential and supporting the country's economic advancement and sustainable growth.

As a subsidiary of Citigroup, Inc., Citi Indonesia, is set to concentrate on three core business areas.

The first is banking, encompassing corporate banks, investment banks, and commercial banks.

As part of this, the company directs its investments toward clients at the forefront of the new economy, with a focus on sectors like technology, healthcare, and clean energy.

Secondly, the market. Here, their efforts are channeled into optimizing capital utilization and shifting towards activities that yield higher margins.

The third involves services. Citi Indonesia offers treasury and trade solutions (TTS) in addition to security services.

Recognizing the significance of TTS within their overall strategy, the company is committed to enhancing the client experience and fortifying their technological infrastructure to meet evolving demands.

According to Batara, these three fundamental business components will persistently generate higher returns, reduce the cost of equity, enhance shareholder value, and position the company for sustained growth.

In addition to this, Batara underscored the company's unwavering focus on product innovation, efficient balance sheet management, and maintaining a robust risk management framework.

These efforts align with Citi Indonesia's vision to become a leading banking partner for institutions with cross-border requirements.

Batara concluded by emphasizing Citi Indonesia's commitment to harnessing the digital potential and actively supporting the nation's economic progress and sustainable growth.

Meanwhile, Head of Treasury & Trade Solutions at Citi Indonesia Yoanna Darwin noted that the digital economy serves as a driving force propelling Indonesia toward a prosperous future.

This transformative shift not only enhances transaction efficiency, according to her, but also opens up fresh opportunities within the financial sector to meet the evolving demand for fast, affordable, reliable, and secure financial services. (Rika Anggraeni/T01)

Cek Berita dan Artikel yang lain di Google News dan WA Channel
Editor: Aprilian Hermawan

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