Ichwan Peryana is a Co-founder & CTO of Pinjam Modal P2P lending company that focuses on the productive loan market in Indonesia. Ichwan is a Technology Leader who combines his deep industry knowledge, creativity and digital expertise to deliver powerful, effective strategies and solutions that build strong development to create an exponential growth. With over 10 years of experience from many industries in 2021 he was selected as one of the finalists representing Indonesian from Global CIO Forum at The World CIO Summit 2021 in Dubai, UAE.
In an exclusive interaction with us, Ichwan shares his thoughts on some of the defining tech trends that will shape the payments industry in particular this year and on building digitally resilient technology platforms.
What are some of the trends that you see dominating the Indonesian fintech market?
There has been rapid expansion in all fintech verticals, including payments, lending, and investments. However, the opportunity in fintech remains vast, as despite these advancements, adoption rates represent only a small portion of the total addressable market. Consider the fact that 47 million adults are underbanked and 92 million adults are unbanked. As of 2021, the P2P loan book accumulation for the 103 fintech companies officially listed by the Financial Services Authority had only reached $20.4 billion (OJK). This only applied to 26 million borrowers nationwide. In addition, there are 63 million MSMEs in the country, which account for over 60% of the country’s GDP. However, only 19% of these businesses have access to financial products, resulting in an estimated $80 billion lending gap.
As financial transactions are involved in nearly every business-to-consumer product or service exchange, the potential for FinTech is virtually limitless. In the next five years, fintech ventures will likely bring financial inclusion to the underbanked and unbanked, causing a disruption of this order.
What are some of the defining tech trends that will shape the payments industry in particular this year?
The acceleration toward digital payments may reach a tipping point in the coming year due to innovation and growing customer acceptance, according to our forecasts. As companies reevaluate their operating models, consumer preferences, digital identity, next-generation technology, and ongoing innovation assume the spotlight.
Here are four trends to keep an eye on as digital payments transition from novelty to necessity-
Expanding real-time payment options for customers: We see an opportunity for card issuers, loan originators, and consumers to use newly accessible digital payments data to move away from traditional credit scores and toward alternative financial measurements.
Digital Identities strengthen infrastructure: With the acceleration and expansion of digital transactions into all aspects of life, including health, education, travel, commerce, and government, human-centric digital identity technology helps to reduce risks and build confidence in the secure use of personal data to authenticate transactions.
Next-generation money-transfer technologies and digital: Multiple fintechs and crypto-enthusiasts promote blockchain as an enabling and more elegant alternative to ACH, paper-based processes, and other B2B payment methods, particularly for cross-border transactions.
New regulation lags behind innovation: Anticipate increased public and private cooperation in launching and securing new and existing products and services. This should aid in the development of appropriate safeguards in the form of guidance and research that corresponds to existing risk and regulatory standards.
What as per you are the core tenets of a forward looking, resilient digital strategy?
Current business conditions necessitate an integrated approach. To thrive and survive, every organization must acknowledge its reliance on digital infrastructure to “keep the lights on” and work toward digital resilience at all levels, from the executive suite to the front lines. As cybersecurity threats continue to evolve, it is essential to adopt a pragmatic approach to digital resilience. Your organization can be shielded from a vast array of potential RCP (Resilience, Cyber, and Privacy) issues by asking the right questions and having the right vision.
An ideal three-pronged RCP playbook can significantly improve the stance of an organization: proactive compliance by means of enhanced privacy protocols, reduced delay between cyberattack detection and response, provide a competitive advantage through a digital ecosystem that is resilient and able to minimize downtime and external shocks.
It is simple to fall into the trap of viewing digital resilience solely in terms of risk. However, its role extends far beyond that. Additionally, digital resilience serves as a solid foundation or “launchpad” for digital innovation. Maintaining a real-time, high-definition view of the status of core digital infrastructure, including from a compliance standpoint, enables an organization to innovate with confidence – a “risk dividend” that can be reinvested in the business. In an uncertain world, digital resilience is a strategic imperative that can support competitive advantage.
The payments industry is particularly affected by the challenges posed by cybersecurity risks. How can AI mitigate cyber threats and what more can BFSI and fintech organizations do in this regard?
AI is a crucial weapon in the fight against cyber threats, as AI-based systems are now able to handle and rapidly analyze millions of events and map this information to identify various types of threats. This includes analyzing new malware to identify zero-day attacks in order to discourage users from clicking on suspicious emails. In addition, AI systems can learn from past security event patterns to anticipate and prevent future attacks.
Among the most important applications for an AI/ML system are the following:
- Threat and anomaly detection: An AI-based system can quickly detect threats and anomalies when compared to a standard baseline behavior.
- Identity analytics and fraud detection: AI-based systems can be used to develop fraud-related pattern recognition models. As more data is fed into the system, the accuracy of the AI model increases.
- Bot mitigation: Bots are the Internet’s scurge and can be extremely hazardous. Hackers have been known to program bots to hijack accounts and create fake accounts. It is possible to use and train AI systems to distinguish between malicious and good bots.
- Asset discovery: Artificial intelligence can be used to automate the discovery of all essential devices and applications. This can play a significant role in risk mitigation.
- Incident Response: AI-powered systems can assist with incident responses, allowing organizations to effectively manage security alerts. By prioritizing incident response activities, AI-automated incident responses can reduce vulnerabilities and provide quicker responses to such events.
Global fintech companies are currently overwhelmed by cybersecurity threats. AI is a significant asset in the fight against cybercriminals because it enhances the effectiveness of cyber analysts by allowing them to concentrate on the most pressing threats.
Your one piece of advice to CIOs/CTOs when it comes to building digitally resilient technology platforms.
The CIO/CTO will be at the forefront, as businesses navigate in unchartered waters, whether that means determining how a business stays relevant, or how to keep up with a demand that couldn’t have been foreseen by using technology to leverage innovation and resilience on business processes.
Organizations must regularly review their business modernization journey’s progress and make course corrections as necessary. It is essential to remember that the end aim of company modernization is not only to overhaul procedures or replace obsolete technology.
That might be a result, but it cannot be the ultimate objective. To develop a digitally resilient company, the organization must consider how it will adapt and optimize the business.
Modernizing technology and reimagining processes are essential components, but organizations must not lose sight of the need to modernize their people’s attitudes and prepare them for transformation. Obtaining modernization in all three domains people, processes, and technology produces a mentality of continual change that will future-proof the organization. To achieve digital resilience, it is essential to shape attitudes and profoundly transform the culture. The organization must develop the ability to think differently. If the viewpoint of your workers is based in old systems, outmoded methods of working, and conventional behaviors, you will never be able to truly restructure the firm. The limiting capabilities of your old technology cannot confine the mentality of your workforce. To satisfy consumers and gain a competitive edge, you must change their thinking and reinvent how your firm approaches business challenges.
Ultimately, the evolution of the organization’s mentality must originate at the highest levels. Business modernization must be a business-led, strategic undertaking. IT is clearly a crucial driver, but none of this is possible without a top-down strategy pushed by the C-suite. To promote adoption, communications from leadership must clearly define the vision. Leadership must display behaviors that reflect the transformation in mentality. And staff must be given the resources and training necessary to perfect their talents in a digitally secure workplace.