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Banking Industry & Digital Disruption; Part Three

By September 29, 2022No Comments
digital disruption

Journey of Fintech


Fintech platforms and organizations reconstructed the structure, supply, and acceptance of traditional financial services. Moreover, fintech financial platforms play a significant role in supplementing Small to Medium Enterprises (SMEs) with financial capabilities. The role of fintech platforms and fintech firms is especially significant in countries with a higher per-capita income and higher financial gap. However, can fintech help banks sail through digital disruption?

With its rapidly growing market-based economy, Indonesia, Southeast Asia’s largest economy, holds significant potential for fintech platforms, SMEs, and startups. Fintech financial platforms, in particular, can thrive in the Indonesian economy through their flexible and convenient financial services. Indonesia is a country with a high per capita income and relatively low financial inclusion. Therefore, fintech firms successfully close the financial gap amongst the population and enable financial services to extend to the underserved community.

Fintech, in collaboration with traditional banks, extends the range and reach of financial services, resulting in faster and more convenient banking services. Additionally, this synergy enables faster lending services and efficient ecosystems for clients.


Competition & Cooperation to sail through Digital Disruption


Fintech firms and fintech online platforms are rapidly gathering a large and loyal customer

base. Fintech firms use hard information, allowing the new entrants to process large amounts of customer data successfully. On the other hand, traditional banks depend on soft information, resulting in limited reach and smaller data processing.

The new generation of customers generally demands digital services. Hence, fintech platforms excel at captivating the younger generations of clients. Traditional banks usually lack the convenience and speed the modern customer seeks. Therefore, traditional banks can appeal to time-sensitive customers by welcoming digitalization.

Fintech platforms focus on the customer as the sector depends on the customer’s involvement. In contrary to the new competitors, traditional banks focus on the products as they already have a group of customers involved with the bank. With the capabilities enabled by fintech, banks can maintain a stable customer base by offering them a wide range of services.



Digital disruption initially disrupts the stability of banking institutions and creates heavy competitive pressure. However, the competition will likely keep increasing in the long term. Hence, traditional banks will probably evolve to embody digitalization and provide customer-focused services and products. Through investments in fintech, banks will likely evolve into digital platforms and appeal to a more extensive customer base. Together, banks and fintech can offer greater client security, service variety and range, inclusion, and speed of service to sail through digital disruption successfully.

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