Proceedings of International Conference on Banking and Finance (ICBF): Digital Financial Services Revolution: Challenges and Inclusive Opportunities toward Sustainable Society : Jakarta, October 27, 2023

The conference is initiated by Indonesia Banking School as a response to the changes of financial services industry globally. A decade ago, traditional financial services institutions such as banks and financing companies dominated financial services. However, the power of technology to increase speed and transparency, reduce costs, and provide access to underbanked communities has created a digital revolution in the financial sector. This revolution is driving fundamental changes in financial services, including payment, financing, investment, and financial planning, collectively known as digital financial innovation.

The rapid digitalization of finance is a necessity, and traditional financial institutions must increase their ability to adapt to the new wave of digital innovation. The drive towards digital transformation in traditional finance is motivated not only by efficiency but also by the desire to retain existing customers who demand a more convenient and efficient financial transaction process. The development of technology has also led to the emergence of new business models in finance, with an increase in start-ups and technology companies providing financial services.

Fintech companies have transformed financial services into an engine for economic growth by opening financial access and becoming catalysts for the rapid growth of the digital economy through innovative and interconnected financial services. The wide scope of innovation includes banking and financing products such as digital lending and payments, insurtech in the insurance industry, and robo-advisors and crowdfunding in the capital market industry. The increased availability of open banking platforms and the wider use of artificial intelligence across the financial services ecosystem have been driving the development of the fintech industry.

Sustainable Society refers to sustainable communities which according to World Bank include four dimensions or characteristic. First dimension that signify a sustainable society is one that are environmentally sustainable. Second, Sustainable communities are resilient to social, economic, and natural shocks. Third, Sustainable Communities are inclusive communities. They bring all dimensions of society and all groups of people—including the marginalized and vulnerable—into their markets, their services, and their development. And finally, Sustainable Communities are competitive communities that can stay productive and generate jobs for members of the community. Therefore, the objective of building inclusive, resilient, competitive, and sustainable cities and communities is essential for achieving the Sustainable Development Goals by 2030.

Align with World Bank, the global financial industry should address the digital transformation with a sustainable society mindset. This objective requires strong collaboration of all stakeholders, including triple-helix: industry, regulator and academic.
To achieve the right balance between facilitating digital financial innovation and ensuring strong financial consumer protection and supervisory frameworks, it is necessary to continuously develop the digital financial innovation ecosystem. Digital innovation thrives in a robust ecosystem where investment, accelerator, and talent connect with regulation and customer protection. Regulating technology-driven financial innovation benefits from collaboration between stakeholders and strategic industry partners.

Indonesia Banking School as a Higher Education Institution eager to contribute with regulator and industry to enrich the discussion towards the above agenda. With a strong network of universities, Indonesia Banking School initiate an International and National Conference in 2023 to give a theoretical and practical thinking and the latest research of the issue in three broad areas: Digital Banking and Financial Innovation, Sustainable Finance and Islamic Banking and Finance.

The International Conference on Banking and Finance is hoping to be an academic platform:

• To discuss the challenges and opportunities of the digital financial services revolution, and its impact on the financial system, environment sustainability and economy globally and in Indonesia.
• To explore innovative financial technologies and business models that can promote financial inclusion, inclusivity in general to address social and economic challenges.
• To identify and address the risks associated with digital financial innovation and develop regulatory frameworks that can ensure industry sustainability, consumer protection, mitigate risks, and promote competition.
• To foster collaboration and knowledge-sharing between stakeholders, such as government institutions, technology companies, universities, and regulators, to develop a supportive and comprehensive digital financial ecosystem that can drive economic growth and promote financial inclusion in Indonesia.