Accelerate Indonesia’s Banking Growth through Banking Excellence

Djarot Subiantoro from Sigma (centre) explained the technology showcase

With 53 speakers, 805 participants, with a total visitors of 2,481 represented 11 countries (Australia, Canada, China, India, Indonesia, Malaysia, Singapore, Taiwan, Thailand, United Kingdom, and United States of America) APCONEX and its theme has brought up several important issues and challenges in the financial industry to grow, coexist and compete with the international market.  In order for a financial institution to exist and compete in the era of globalization, the first thing that they have to do is to have a strong and solid system, from its financial structures and the system that supports it. 

It is impossible that banks cannot exist or even compete among its peers without the aid of technology.  With technology, it will tremendously boost productivity, innovation, and most likely, they will gain many advantage in services, and business and or marketing strategies.  However, many financial companies feel that investing in technologies would be investing o­n a falling market.  It is expenditures that many felt necessary but costly.  It is not hard to imagine that many enterprises today and even many Small Medium Businesses starting to change its mindset from capital expenditures towards operational expenditures.  This migration from CAPEX to OPEX becomes possible through the supports that many technological firms are offering.  Many of these firms are international vendors and big names software and hardware makers.  Do not feel hesitated first because even national vendors like Sigma Cipta Caraka are here to serve such possibilities to Indonesian banks and financial industry. 

Technologies that will be most useful in today’s banking challenge are BPO (Business Process Outsourcing) which includes; HRMS (Human Resources Management System) and SERA, Shared Services which include: DRC (Data Recovery Center), Micro Financing which includes: SIGMA APPROVA (Loan Approval System), and SIGMA CAMS (Costumer Asset Management System), and SIGMA BANCOLOGY as a full comprehensive banking solutions.

This year APCONEX’s mission doesn’t revolves around how can companies in the financial industry able to grow in significant leaps through minimizing cost and  management, however they also hope that Islamic Banking such as Syariah, able to play a bigger role in moving the wheel of economy.  There are plenty of concerns that come to surface, but it is an opportunities to be seized.  With conventional banking holding steering the economy, it signifies a great growth in the economy in general, however it is best if Islamic banking also plays its role.  When conventional banking collapse during the financial crisis, Islamic banking survives, even profited.  If there is a second collapse, how can the economy stands with more than 95% of financial industry still sticking with conventionality?

Currently there are strong supports supporting Islamic bank to support the financial industry.  Like neighboring countries such as Malaysia, where their economy strongly supported by the Islamic banking guiding the economy towards a faster development/growth while making Islamic banking as pillars towards the economy.  However, lack of innovation, knowledge and public awareness, has slowed down the growth of Islamic banking.  Many Syariah institutions challenged o­n how they are able to coexist and compete with conventional banks that exist in Indonesia because the problem exist internally and externally, internally it’s the lack of knowledge and innovations from the Syariah business alone, and externally is more towards public awareness and competitive products.

Internally, o­ne solution that they may take out or check off from the list of challenges is from the technological point of view.  With Sigma Syariah Bancology solution it propose real Islamic banking engine that are free of interest banking business.  It gives operational efficiency and it is more into customer centric banking giving total flexibility for both the costumer and the institution.  Sigma Bancology is a web based front-end system giving real values towards the business where it lowers initial investment.  With flexibility in parameterized system, it gives the full control towards users.  The system integrates and supports multiple delivery channels.  It complies with central bank and national Syariah board regulations (fatwa), and the system covers all Syariah products following the Syariah principles.   

With technology that is up par with most conventional banks, it is without doubt that Islamic Banking can succeed and finally blends with the Indonesian market as o­ne of the pillars of economy.  Now is all about product innovation and public awareness to aid in boosting the market and the economy itself.  APCONEX hopes that with all technological advances available in today’s market, it is more likely to boost economy and the growth of the industry itself through banking excellence.  With the convergence of technology and the conversion of CAPEX to OPEX, it is possible for any financial institution to breakthrough old habits and succeed with new ways of operations.  With BPO (Business Process Outsourcing), HRMS (Human Resources Management System), SERA, Shared Services such as: DRC (Data Recovery Center), Micro Financing which includes: SIGMA APPROVA (Loan Approval System), and SIGMA CAMS (Costumer Asset Management System), and SIGMA BANCOLOGY as a full comprehensive banking solutions, it will be easier for companies to achieve international standards and compete head through banking excellence.