Payments, investments, financing, e-banking, and portfolio management\nare no longer entirely within the domain of banking but have shifted to\napplications, digital ecosystems, and data-based technologies.<\/p>\n
The idea put forward by Dan Awrey in the book Beyond Banks (2026) is\nhighly relevant to Indonesia. What once seemed like an academic\nprediction is now a reality in the daily lives of Indonesian\nsociety.<\/p>\n
In the last decade, financial digitalisation has developed rapidly\nthrough QRIS, digital wallets, mobile banking, fintech lending, and buy\nnow pay later services. This change is not merely technological\ninnovation but a fundamental transformation in how society utilises\nfinancial system services.<\/p>\n
On one hand, this development brings significant benefits.\nDigitalisation has successfully opened access to financial services for\nmillions of residents previously unreachable by banks. Small traders can\nnow receive digital payments.<\/p>\n
SME actors gain faster access to financing. The young generation or\nGen-Z is familiar with the financial system through digital, modern, and\nuser-friendly applications. In certain contexts, technology has expanded\neconomic inclusion in a more democratic manner.<\/p>\n
However, on the other hand, this transformation also presents new\nchallenges that need to be understood critically. As financial services\nincreasingly rely on digital platforms, data ownership becomes a new\nsource of economic power.<\/p>\n
Consumption patterns, transaction behaviours, and financial\npreferences are gradually concentrated in data technology ecosystems\nwith infinite analytical capacity. This is where the issue of digital\nsovereignty becomes important. Those who control the data ultimately\nalso have significant influence over societal economic behaviour.<\/p>\n
Empirical experience shows that technological developments often move\nfaster than regulations. Phenomena such as illegal fintech, misuse of\npersonal data, digital fraud, and consumer debt traps serve as important\nlessons that financial literacy and consumer protection must advance at\nleast as quickly as innovation. Digitalisation should not be measured\nsolely by the number of transactions but also by the quality of\nprotection against fraud and financial crime risks.<\/p>\n
Indonesia faces a situation that is more or less similar. The country\nhas great potential in the digital economy, but part of its\ntechnological infrastructure still depends on global ecosystems.\nTherefore, the main challenge is not to reject innovation but to ensure\nthat it progresses alongside societal protection and national\ninterests.<\/p>\n
Another issue is the digital literacy gap. Many users of digital\nfinancial services do not fully understand the risks, such as hidden\ninterest systems, promises of rewards, OTP security, data misuse, or the\nlegal implications of electronic transactions. In such conditions,\nsociety can easily be lured into consumptive behaviour wrapped in\ntechnological convenience.<\/p>\n
Therefore, digital transformation needs to be built on the principle\nof balance. Innovation must go hand in hand with ethics, consumer\nprotection, and strong governance.<\/p>\n
Technology should enhance public welfare, not create new forms of\nsubtle economic exploitation through digital behavioural\nmanipulation.<\/p>\n
Amid these changes, Indonesia actually possesses important assets.\nThe implementation of QRIS by Bank Indonesia demonstrates that the state\nis still capable of building a relatively independent and inclusive\nnational payment architecture. QRIS is not just a payment instrument but\na symbol of the state\u2019s ability to maintain sovereignty in the domestic\npayment system in an era of global platform dominance.<\/p>\n
The transformation towards Beyond Banks therefore does not need to be\nviewed as a threat to banking but as an opportunity to redefine the role\nof banks in the future. Banks will no longer merely be places for\ntransactions but must evolve into institutions of trust, risk managers,\nguardians of stability, and centres for integrating digital financial\necosystems.<\/p>\n
In this context, the concept of Universal Banking becomes relevant to\nconsider. Universal banking allows integrated financial services within\none ecosystem that encompasses retail banking, commercial banking,\ninvestment, and digital services based on super-apps. However, this\nmodel requires significant technological investment, strong governance,\nand regulatory readiness to face increasingly complex risks.<\/p>\n
The future of Indonesia\u2019s financial system will ultimately not be\ndetermined solely by how quickly technology develops but by the ability\nof the state, regulators, industry, and society to maintain a balance\nbetween innovation, inclusion, stability, and national economic\nsovereignty.<\/p>\n
The important question is no longer whether traditional banking\nbusinesses will be reduced but whether Indonesia can ensure that digital\ntransformation truly strengthens societal welfare and safeguards\nnational interests amid the increasingly dominant flow of global\nplatform capitalism.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/beyond-banks-opportunities-sovereignty-and-the-future-of-the-financial-system-1777694007", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }