With the rapid development of the times, many things are also changing rapidly. The banking system is no exception, which has entered a new era: the digital era.

Through the advancement of the digital service system, bank services have become more practical and efficient. However, behind it all, banking challenges in the digital era also continue to lurk.

In this article, we will discuss in detail the banking challenges in the digital era and how to respond to these challenges with BRIAPI.

What is Digital Banking?

In the past, many bank systems and services required customers to complete all their needs through conventional means. For example, by visiting the central bank office or branch office directly. However, technological disruptions that make things easier have changed things.

According to the Financial Services Authority Regulation (POJK) number 12/POJK.03/2018 concerning the Implementation of Digital Banking Services by Commercial Banks, the definition of digital banking is an electronic banking service developed by optimizing the utilization of customer data in order to serve customers more quickly, easily, according to the needs (customer experience), and can be carried out completely independently by the customer, of course, with due regard to the security aspect.


Also read: Facilitate Transactions, Open Banking BRIAPI Accelerates Business Development in Indonesia


Benefits and Types of Digital Banking Services

Digital banking offers a number of benefits to both consumers and business owners. Some of them are:

  1. Easier access because it is not tied to bank opening hours
  2. Lower customer operating costs
  3. The level of security of digital bank products is getting better through fingerprints or One Time Password (OTP) codes.

So far, there are several digital banking services that can be used by customers to complete various types of transactions. Among these digital banking services are phone banking, SMS banking, mobile banking, and internet banking.

9 Banking Challenges in the Digital Age

digital banking challenges

Even though the development of digital banking services is so fast, this progress must also be aware of the various problems that arise. The following are digital banking risks quoted from OJK statements and a number of banking challenges in the digital era:

1. Risk of Personal Data Protection

The first challenge in digital era banking is the vulnerability of personal data protection. As is known, to register and register in digital banking applications, valid customer data identities are required. This customer data must be properly protected so that it is not leaked and misused.

2. Strategic Investment Risk in the IT Sector

Digital development certainly requires investment in the IT sector which aims to develop resources in order to achieve the expected goals. However, this requires an appropriate and measurable strategy so that the investment can reach its maximum potential and not cause losses.

3. Risk of Cyber ​​Attacks

Cyber ​​attacks are one of the big challenges in the development of digital banking in Indonesia. An organization that oversees the development of digital banking technology should be able to prevent cyber attacks with the latest technology.

4. Organizational Readiness

It is important for an organization to have supportive resources and have deep industry understanding so that banking challenges in the digital era can be handled properly.

5. Risk of Leakage of Customer Data

The bank needs to maintain the security of customer data in order to avoid data leakage. From the customer's point of view, they must always be careful and protect their personal data as best they can.

6. Misuse of Technology

It is important to understand how an online banking digital application or service works in order to avoid fraud that takes advantage of technological developments. Therefore, customers need to protect personal data, such as passwords, pins, and One Time Password (OTP) to prevent irresponsible persons from exploiting this data.

7. Risk of Using Third Parties

The risk of data misuse from third parties is also one of the banking challenges in the digital era. However, thanks to strict regulations and supervision, this risk can be addressed as early as possible.

8. Communication Network Infrastructure

The challenge for banking in the next digital era is that communication networks are not evenly distributed in every region. This is due to the fact that most regions in Indonesia do not yet have the supporting technological development infrastructure.

9. Banking Regulations from the Government

From the government side, they also need to always review and accommodate the rapid development of digital-based services. The development of good regulations related to products and institutions can support the banking industry, especially as an effort to accelerate banking digital transformation.


Also read: 10 Benefits of Open Banking in Various Industries, from Retail to Fintech


BRIAPI Open Banking Responds to Banking Challenges in the Digital Age

Open Banking in the Digital Age

In this digital 4.0 era, the need for fast and easy banking services is increasing. Responding to this need, BRI launched a service called BRIAPI. BRIAPI has been successful in BRI's efforts to answer banking challenges in the digital era through open banking.

BRIAPI is an application developed by BRI that enables the integration process between third party applications and BRI services. BRIAPI can expedite and facilitate various information needs and banking transactions needed by companies and institutions in this digital era.


Also read: Take advantage of the BRIAPI E-channel Location API for your digital business


BRIAPI Excellence in Digital Banking Technology


Keunggulan API dalam Perbankan Digital

As the largest bank in Indonesia, BRI responds to disruptions in the development of digital technology in banking through six advantages of BRIAPI open banking technology, namely:

1. Start Easy Integration.

It is very easy for digital platform owners to integrate with BRIAPI. The integration flow to the operational flow of the system is clear. You can register through the BRIAPI Developer Portal site or by contacting the BRIAPI helpdesk.

For developers, the BRIAPI Developer Portal site is also equipped with complete documentation and a sandbox for testing before you actually integrate.

2. Fast Integration Process.

The BRIAPI integration application process is very fast. You only need to do four easy steps to integrate BRIAPI:

  • Register your company to get BRIAPI sandbox access.
  • Define the API product that you want to use and develop in the application using the sandbox.
  • Document verification by the BRIAPI team.
  • Ready to be integrated with BRIAPI

3. Guaranteed Security.

All data exchanged between BRI and third parties through BRIAPI is guaranteed to be secure using various types of encryption. Data will not be leaked let alone misused by irresponsible parties. BRIAPI also continues to update its security system by referring to best practices and international security standards.

4. Regulatory Compliance.

BRIAPI has complied with information system security in accordance with the provisions of the Payment API National Standard by Bank Indonesia..

5. Risk management.

BRIAPI follows BRI's operational flow regarding banking risk management to anticipate cybersecurity risks and threats. BRI even uses AI to understand patterns of fraud and threats so that it is able to take preventive actions and be responsive quickly and precisely to various data theft attempts.

6. Reputation.

With all these advantages and guaranteed international standard security, you don't need to worry about integrating your business comfortably and easily with various BRIAPI services.

Starting from the Direct Debit feature, BRIVA, fund transfer, BRIZZI balance checking and top-up features, to foreign exchange mutations and exchanges to help your business grow.


Also read: Accelerating Banking Digitalization Through Adoption of Open Banking in 2022



digital bank with smartphone

After knowing the various banking challenges in the digital era, you can anticipate the problems that might arise. And with BRIAPI, you no longer need to worry about this anxiety.

Of all the banking challenges in the digital era mentioned above, we advise you to choose the safest service provider. BRI, with its commitment to maintaining customer data security, always guarantees security in order to anticipate risks that could occur to customers.

That's why, with BRIAPI, you don't need to hesitate anymore to take advantage of open banking services to make it easier for you to manage every transaction and manage digital financial business. Integrate BRIAPI right now!