Banking Transformation in Digital Disruption Era

Written by Irvan Hanavi on . Posted in News


 “As time goes by, banking activities which used to be done manually switched to be digitally which causes disruptions,” explained Suwignyo to 360 students of Executive Series participants.

 The Executive Series held on November 17 by Master in Management Faculty of Economics and Business Universitas Gadjah Mada (MM FEB UGM) through its Finance Club supported by MMSA FEB UGM presented Ir. Suwignyo Budiman, M.B.A., as the Director of Individual Banking Retail and Commercial Banking Bank BCA as the keynote speaker. Before pursuing his career in BCA, Suwignyo started his career in Bank BRI as System Analyst in 1975, Head of Technology Division (1992-1995), Special Director Staff (1995-1996), Regional Head of Palembang (1996-1998), Head of Operational Division (1998-2000), and Regional Head of BRI Jawa Tengah. His extra dynamic experiences in banking were such inspiration for the students.

Prof. Dr. Eduardus Tandelilin, M.B.A. as the Director of MM FEB UGM Jakarta and Bayu Sutikno, Ph.D. as the Deputy Director MM FEB UGM Yogyakarta attended the event. “Banking in digital era can be seen through 2 different sides; thread and opportunity,” said Tandelilin in his opening speech.

Carrying out the theme of “Banking Transformation in Digital Disruption Era”, the Executive Series set Eduardus Tandelilin as the moderator. Suwignyo revealed that during the past 5 years, Indonesian banking asset of 6.370 trillion compared to its GDP of 13.000 trillion was considered very low among other countries which achieved more than 100%. Meanwhile, 50% of Indonesian banking asset was owned by 5 biggest banks; Bank Mandiri, BRI, BCA, BNI, and CIMB Niaga. Within the past 10 years, Financial Technology (FinTech) had been rapidly flourished that resulted in new innovations mainly regarding the high speed technology development, bigger capacity, faster access, and higher accuracy. With the rapid technology development, financial matters went more efficient and created new opportunities but the new process, market and business might cause disruptions. Suwignyo showed a video on financial disruption in China which was the biggest one happened. The video exhibited how Chinese done online transactions which only needed smartphone to do the payment.

A survey of WTC 2016 from the financial perspective mentioned that the most affected sector by disruptive potency was consumer banking and payment. On the other side, FinTech was a new technology which was able to compete with the long-established banking industry. Why did it happen? It was due to banking had complex regulations while FinTech had none. If the banking industry could not adapt the current financial trends, it would consider FinTech as disruptive despite FinTech could play roles in competition, collaboration, or investment.

The Executive Series was concluded with 2 question-answer sessions and group photo sessions at 4 PM.

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