Participants of OpenText's exclusive roundtable discussion in Jakarta
In the new digital-first world, financial institutions will be required to deliver a range of products and services using digital channels. The alternative is to be marginalised as utility providers that hold capital and supply accounts. Financial institutions will need to digitalise all of their processes and operate at the speed of digital. In short, they will need to disrupt or die.
To outrun the risk of becoming irrelevant, financial institutions need to become a key component of their customers' digital ecosystems. To overcome key disruptive forces, they must invest in new technology platforms, integrate emerging technologies with legacy IT infrastructure, standardise their data across systems, and create dynamic and flexible processes to support new technologies and devices, and hence become digital financial services providers.
Addressing these challenges, CIO Asia in partnership with OpenText hosted an exclusive roundtable discussion on 16 May 2017 at the Scusa Restaurant, Intercontinental Jakarta Midplaza.
Sri Narayanan, executive editor and moderator, noted the discussion around digital transformation (DT) in Indonesia was really market-driven, addressing unique challenges facing a large emerging economy. "In many segments, the reach and penetration rate of financial products are very low, hovering around 30 percent. Banks, insurance and securities companies are finding that product complexity is a deterrent." DT, he suggested, is taking root because there are opportunities to streamline and simplify products while engaging customers directly.
In his opening remarks, Albert Tay, director, Financial Services, APAC & Global Advancing Market, OpenText noted that many financial services organisations were still struggling with processing their content assets into usable information. "The FSI sector still suffers from reams of paper-based, analogue data which is a hurdle in digital transformation efforts. Digitising customer content, managing and processing that information with advanced analytics is the cornerstone of any successful digital transformation. It's the foundational piece," he observed.
He added that OpenText, with its investment in research and development, was taking digital transformation to the next level with newly announced machine learning tools to help financial institutions glean more insights and turn data repositories into knowledge bases.
The conversation continued through a lively question-and-answer exchange with CIOs across the FSI sector sharing their thoughts and experiences on their digital transformation journeys and the challenges they faced within their organisations.
Is It digital transformation or digital upgrades?
There was general consensus the Indonesian FSI sector began digitalisation over a few decades, more so than other industries. However, technology was fundamentally a support element to supplement delivery of products and services. For example, the early introduction of ATMs was driven by a desire to extend services and customer convenience.
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