This document summarizes a presentation given by Indra Utoyo, the President Director of AlloBank, about customer protection in the digital banking era. The presentation discusses how everything is moving digitally, including financial services, and the opportunities and challenges this presents. It covers regulatory responses in Indonesia to encourage digital transformation while ensuring customer data privacy and security. Case studies on digital risks to consumers and AlloBank's approach to customer centricity and protection were also presented.

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Customer Protection in Digital Banking Era
OJK Institute Webinar
Indra Utoyo
President Director of AlloBank
6 Oktober 2022

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“A New Paradigm in New Normal”

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Shifting in Habit:
Everything is Moving and Innovating Digitally
Everything is
Moving to Digital
• Digital Platforms
• Financial Services
• Business Operations
DIGITAL
PLATFORMS
FINANCIAL
SERVICES
BUSINESS
OPERATIONS
Remote
Working
Online Retail Ed Tech
Insurance Digital Lending Digital Payment
Innovation to Cater Broad
Range of Needs
Partnership
M&A with Digital
Platforms/Bank/Fintech
Food Delivery Health Tech
Online Investment
E-commerce remains to be Indonesia’s main growth driver with 54% YoY. Covid-19 also unlocked
an opportunity for HealthTech and EdTech platforms.
Consumers and SMEs have adopted Digital Financial Services more than before.
Source: McKinsey, 2021; e-Conomy SEA 2020, Google, Temasek Bain & Company
Ripen Digital
Adoption
On-Demand &
Integrated Solutions
3

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Today, a number of emerging customer, competitive & tech trends are
setting the stage for a potential unbundling of the banks’ value chains
Open, API Standards
Robotics and cognitive capabilities
Scalable next-gen
infrastructure (e.g. cloud)
Increasing capital and
compliance burdens Best-of-breed consumption
Informed decisions
Mobile connectivity
Heightened expectations
Product-based
competition
Reduced risk
appetite
Expansion of institutional
capital to retail
Emergence of
non-traditional players
Source: Deloitte

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Banking Technology is Continuously Growing
Source: Thoughtworks, Embrace the Ecosystem

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Regulatory Responses on Open Banking & Digital Business
Transformation in Indonesian Banking Landscape
6
Creating a strong,
competitive and
innovative Payment
System Industry
Encouraging integration,
interconnection,
interoperability, and
security and reliability of
payment system
infrastructure
Ensuring the creation of
a level of playing field
between stakeholders
in the Payment System
Open API ecosystem
with integrity
Open Banking Regulation:
Standar Nasional Open API Pembayaran
PADG No 23/15/PADG/2021
Tentang Standar Nasional
Open API Pembayaran
Commercial Banks and Licensing related to the launch of new
banking sector products
Encouraging &
accelerating digital
transformation in the
banking industry
Banks can become more
agile with faster
time-to-market for
development of digital
banking products
Increase industry
optimism in launching
digital banking products
with faster licensing
POJK No. 12 tentang Bank
Umum
POJK No.13 tentang
Penyelenggaraan Produk
Bank Umum

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Source: Bluebook OJK
Regulatory Responses on Open Banking & Digital Business
Transformation in Indonesian Banking Landscape

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Data privacy and data security in Digital Transactions
Cross-sector regulations Integration between financial
sector and Information and Communications Technology
(ICT) sector
Potential Cyber Attacks
SIM Swap Number takeover
Current Condition
Information and
Communications
Technology (ICT)
Regulator
Telecom Digital
Financial Service
Fraud
Financial Regulator
Acceleration of
digital
transformation
Increased
digital
transactions
Bank Integration
with 3rd Parties
Importance of
ensuring “customer
trust” through data
protection
Governance
Indonesia's parliament ratified the Personal
Data Protection Act
Uncertainty in determining the
appropriate reference for customer
data security for industry players
Customers are wary of data sharing
Open API
Mobile Number is
the backbone for
digital trx
No Man’s Land
UU PDP
Digital Financial Industry Undeniably Offers Enormous Prospects,
However, Still, There are Unaddressed Issues in the Industry….

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“Consumer Protection in Digital
Transformation”

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ADAPTING BANKS, ADAPTING CRIMES
at the same time as rapid digitalization, the nature of consumer risks is evolving
and the scale of risks is sometimes growing faster than the opportunities that
the services create.
mobile app
fraud
biometric ID
fraud
algorithmic
biases
DUFLOS and COWTZEE. “Rethinking Consumer Protection: A Responsible Digital Finance Ecosystem”,2022
crypto
related
frauds
authorized
push payment
scams
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The Importance of Customer Protection
Four Digital Risk for Consumer in Digital Finance
Fraud Data Misuse Lack of Transparency Inadequate Redress
Mechanism

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Study Case:
Digital Risk for Consumer in Digital Finance
Ponzi Schemes
Data Misuse

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90 % of Indonesia customers prefer
engaging and transacting on
trustworthy digital platform
Source : IDC, Digital Trust Survey, 2018
“Trust is the heart of customer experience”

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All five elements of trust are almost equally important to consumers in Indonesia
Source : IDC, Microsoft, Digital Trust Survey
Q1: From the following five attributes of trust, can you rate which ones are more important to you in determining whether or not you trust the digital relationship with the organization?
(1 = Not important; 5 = Very important)
Financial 4.0 Priorities in Trust

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Customer Data
Exchange
Security &
Transparency Value
Trusted:
A balanced
personal data
ecosystem
© 2018 Deloitte - Open Banking Privacy at The Epicentre
Trust can be hard to gain or easily
lost when unexpected and unwanted
uses for personal information
become known.
The conditions for trust may exist but if
customers are unwilling to share their personal
information it may adversely impact the
customer’s experience, making it harder to
build a good reputation and trust.
Data Exchange + Security & Transparency
Data Exchange + Value
Value + Security & Transparency
Banking Model of The Future
Open Banking Era
Account
Opening
Merchants
Credit Scoring
Analytics
Data
Privacy
Trust can be hard to gain or easily lost if
customers don’t see a fair return for the
personal information they share.
Privacy & Digital Ecosystem in Open Banking Era

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Digital Initiatives Model in Financial Industry
Customer
Centric
Product
Technology
Regulatory
Compliance
Still apply with no change
Changed by FinTech
• KYC
• Data Privacy
• Anti Money Laundering
• Risk Management
• Information Disclosure
• Investor Sustainability
•
• Big Data & AI – improve risk
assessment
• IoT & Cloud make risk control
efficient
• Biometric facilitate KYC for rural
• Blockchain – trusted system
• Service embedded in
scenario
• Risk control based on real
transaction, manageable
• Acquire data move efficiently

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Rethinking Consumer Protection
A Responsible Digital Finance Ecosystem
How to build a responsible
digital finance ecosystem
Customer-centricity better
protects consumers by putting
them at the core of any initiative
Key actors have the capability to
contribute to a responsible
ecosystem
Collaboration involves structured
and constructive relationships
between actors in the ecosystem

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“Experience A Simple Life”
Case Study:

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Case Study: AlloBank
We are a Fast Growing Digital Bank with Best in Class Metrics
In
4 months from
launch
Customer Acquisition
More than
3 million
customers
As of July 2022
“Phygital” infrastructure
to provide optimal
banking access in Tier 1,
2, & 3 cities
Physical Channels
Allo Bank Application
Wireless Carriers
&
Ecosystem App
MPC
Digital Bank
Allo Bank provides an ecosystem
in one hand. Unify Membership,
Points, and Coupons across CT
Corp businesses and beyond

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Start with Customer Obsession
WE
SHOULD
OBSESS
WITH
CUSTOMER
THROUGH
SPEED
SMART
SIMPLICITY
IMPACTFUL
SIMPLICITY
CUSTOMER
CENTRIC

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Weapon for Customer Protection (⅓)
Perlindungan Konsumen dan Masyarakat di sektor jasa
keuangan menerapkan prinsip:
a. edukasi yang memadai;
b. keterbukaan dan transparansi informasi;
c. perlakuan yang adil dan perilaku bisnis yang
bertanggung jawab;
d. perlindungan aset, privasi, dan data Konsumen; dan
e. penanganan pengaduan dan penyelesaian sengketa
yang efektif dan efisien.
POJK NO. 6 /POJK.07/2022 TENTANG
PERLINDUNGAN KONSUMEN DAN MASYARAKAT
DI SEKTOR JASA KEUANGAN

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EDUCATION
TRANSPARENCY
DATA PROTECTION
• trusted system with real time
verification and fraud detection
• Identity Governance
12
• Help Center, FAQ, Terms & Conditions,
Privacy Policy
Weapon for Customer Protection (⅔)

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CUSTOMER CARE
080 4110 4110
0822 0822 4110
allocare@allobank.com facebook.com/AlloBankID
@allobank
linkedin.com/company/allo-bank
Allo Bank Indonesia
@allobankid
@AlloBankID
Weapon for Customer Protection (3/3)

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Terima Kasih