Download our report to find out how financial institutions in Indonesia are safeguarding their digital products and channels in an age of increased digital adoption.
of FIs predict an increase in money laundering in the upcoming year
of FIs found scaling fraud detection solutions to be the most challenging factor in growing digital transactions
of FIs are investing in platforms to share data across fraud, compliance and cybersecurity
In this report, we analyse emerging trends in Indonesia’s financial institutes (FIs), their digitalisation priorities and existing gaps in fraud prevention and mitigation.
The study gauges the digitalisation priorities of FIs, assessing key fraud and security challenges, as well as evaluating the existing gaps that need to be overcome to mitigate fraud in a rapidly digitalising world.
Digital adoption in Indonesia is ahead of other regional peers. Increased impetus towards digital shift and technology transformation will further accelerate digital transaction volumes over the next three years.
Regulators become stringent and expect FIs to prevent, detect and recover faster from frauds. Regulatory penalties emerge as the biggest fraud loss and the majority of FIs face growing challenges in incorporating new regulations issued.
Organisation integration improves across compliance, fraud and cybersecurity. There is however a scope for further synergy as one fourth of banks still operate in siloes.
Fraud incidents escalate in 2021. FIs predict an increase in money laundering followed by phishing, scams and malware in 2022. Scaling fraud detection and fraud prevention in online channels emerge as the top challenge.
Data integration key gaps are emerging, underscoring an urgent need for multi-layered technology and data to address evolving threat patterns. FIs need to increase integrations of data silos, alongside machine learning applications being the priority.
Machine learning and end-point threats with malware detection, machine learning and fraud management identified as key priorities in 2022. New endpoint threat detection will form the biggest component of investment against fraud.