Department of Accounting

Faculty of Economics and Business

Universitas Padjadjaran

Ekonomi, Keuangan dan Akuntansi

Syariah menyongsong Era Fintech

Pendidikan Profesional Berkelanjutan – IAI Jawa Barat

Unpad Training Center
Jl. Ir. H. Djuanda No.4
------
Hamzah Ritchi
hamzah.ritchi@unpad.ac.id

BSc – Universitas Padjadjaran

MBIT – University of Melbourne
Dr – Humboldt Universität zu Berlin

Activities:
Lecturer and Researcher @ Universitas Padjadaran
Partner in Research @ Veda Praxis

linkedin.com/in/hamzahritchi/

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 Current FinTech Landscape Opportunity & Takeaways
Evolvement Challenge

4-May-18 3
 Current “You could not step twice into the same rivers, for other waters flow on”
Evolvement ― Heraclitus”

FinTech Landscape Opportunity & Takeaways

Challenge

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Daxueconsulting.com 4-May-18 5
 Ecosystem is reshaping

Preserving proprietary Encouraging transparency

Etablished structure Agility and flexibility.

Dictating consumers and

More exercising their power.
users

From economy of scarcity Economy of abundance.

4-May-18 6
Source: “Digital Globalisation: The New Era of Global Flows”, MGI, Mar 2016 4-May-18 7
Understanding Disruptive Technology

Process by which a product or service

takes root initially in simple
applications at the bottom of a market
and then relentlessly moves up market,
eventually displacing established
competitors.
~ Clayton Christensen

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 Industries Disrupted by Technologies

POST OFFICE PUBLIC TRANSPORT HUMAN TRAVEL FINANCIAL

AGENT SERVICES

HOTEL & MOTEL NEWSPAPERS & BRICK-N-MORTAR TV & MUSIC

MAGAZINE SELLERS DISTRIBUTION
Courtesy: Veda Praxis
4-May-18 10
 What Disruptive Technology Would Mean

- Save time
- Reduce Cost - Automated Data Entry
- Increase Productivity - Data Categorization
- Overcome Human Limits - Organized Administration
- Better Accuracy - Cloud Based System
- Improves Budgeting
Accuracy - Uninterrupted Auditing
- Improves Planning / - Gain Access to Real-Time
Forecasting Transactional Data
- Secured Process - Immediate Respond to
- Immediate Evaluate Risks Issues
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 Blockchain
Give the ledger to everybody:
1. Peer-to-peer transaction
Trust
2. Distributed stored
database/information
3. Ensure all records sync-up Jury
4. Concensus, rules and code were
defined from the outset and
open-source
5. And DISRUPT various industries... Physical

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 “Technology has always been destroying jobs, and it has
FinTech
always been creating ― Erik Brynjolfsson”
Landscape

Current Opportunity & Takeaways

Evolvement Challenge

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Indonesia
Digital Economy
Landscape

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Transformation in Financial Services

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 Value of FinTech

Source: “Value of FinTech (KPMG)”, October 2017 4-May-18 16

 Indonesia Fintech Start-up Map

Source: (http://fintechnews.sg , 2016) 4-May-18 17

 Fintech Classification - X2X

Business Process Coordinating

Payment, Clearing, Settlement (payment, remittance, electronic
B2C, C2C
wallet, P2P Payment gateway)
Deposit, lending & capital raising (crowdfunding, P2P Lending, credit
B2C,C2C
facitilities)
Market provisioning (e-aggregator, product comparison, market
B2B, B2C
analysis)
Investment and Risk Management (insurance, planning, e-trading) B2C

Infrstructure and Cross Process (security, blockchain-based) B2B, B2G

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 BI Regulations on FinTech

CATEGORIES CRITERIAS
REQUIREMENTS
1. Payment System 1. Innovative
1. Innovative
2. Market Support 2. Can influence
2. Can influence
3. Investment products, services,
products, services,
Management & Risk technology and/or
technology and/or
Management existing financial
existing financial
4. Lending, Financing, business models
business models
and Provision of 3. Can benefit the public
3. Can benefit the public
Capital 4. Can be widely used
4. Can be widely used
5. Other Financial 5. Other criteria set by
5. Other criteria set by BI
Service BI

Source: Bank Indonesia Regulation Number 19/12/PBI/2017 4-May-18 19

 BI Regulations on FinTech

1
Implement the principle of consumer protection

2 Maintain confidentiality of consumer data and/or information

including transaction data and/or information
3
Implement risk management and prudential principles

4 Use Rupiah in every transaction conducted in Indonesia, in

accordance with prevailing laws and regulations on currency
5 Implement anti-money laundering and prevention of terrorism
funding principles in accordance with prevailing laws and regulations

6 Adhere to other prevailing laws and regulations in Indonesia

Source: Bank Indonesia Regulation Number 19/12/PBI/2017 4-May-18 20

Islamic Finance

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 Islamic Finance Principles

Source: https://weforum.org 4-May-18 22

 Islamic Finance Performance

Source: https://islamicbankers.me 4-May-18 23

 Top Islamic FinTech Hubs

Source: https://bahrainfintechbay.com 4-May-18 23

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Source: https://thumbor.forbes.com 4-May-18 25
Islamic FinTech Companies by Vertical

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 Mechanics of Investment Account Platform

Source: “FinTech in Islamic Finance as Malaysia launches Investment Account Platform (IAP) 4-May-18 27
Islamic FinTech Products in Indonesia

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 More on Islamic FinTech in Indonesia

Source: “indonesiadrc.id 4-May-18 29

 PT Ammana Fintek Syariah

The first sharia lending

fintech in Indonesia

Registered at OJK
(S-1320/NB.223/2017)

Principle:
- Musyarakah
- Mudharabah

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 Opportunity
“I could either watch it happen or be a part of it.”
― Elon Musk”
& Challenge

Current FinTech Landscape Takeaways

Evolvement

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 Islamic FinTech Challenges

1
Absence of a regulatory framework :

2
Absence of a centralized sharia governance

3
Weak Islamic finance culture among the population

4
Absence of innovation and R&D efforts related to Islamic Finance

5 Network business of entry

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 Fintech Cyber Risk
According to PwC’s Global FinTech
Survey 2016,almost 56% of the
respondents identified
information security and privacy
as threats to the rise of fintech

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 Meanwhile, in the start- #4 Get
outcomp
up euphoria eted

#3 Not
the right
#1 No
team
Market
need

#5
Cost/Pri
#2 Run cing
out of Issues
cash

Source: CBInsights

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 • Recording transaction is no longer on
a manual basis and rely on manpower
(POS, Reconciliation, Journal)
• Not every UMKM requires the whole
package of accounting transaction
willrobotstakemyjob.com • Lack of automated financial practice
on the industry
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Courtesy: Manahan Sialagan

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Silver Lining

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 Peluang yang diciptakan Fintech
Membantu tujuan financial inclusion masyarakat
Indonesia.
Mendorong pertumbuhan sektor UMKM dan
perusahaan perintis berbasis digital.
Memaksimalkan ekosistem yang tercipta antara
start-up digital dengan UMKM yang potensial.
Menghadirkan solusi yang sistemik bagi
pertumbuhan industri dan bisnis digital

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 #1: Finansial yang Inklusif
– Baru 36% penduduk Indonesia yang memiliki rekening
bank (World Bank, 2014)
– Masyarakat tidak dapat dilayani industri keuangan
tradisional:
§ Perbankan terikat aturan yang ketat
§ Keterbatasan industri perbankan dalam melayani
masyarakat di daerah tertentu.
– Kebutuhan dukungan untuk mencapai Sektor Jasa
Keuangan Indonesia 2015 – 2019 yang kontributif,
stabil, dan inklusif.

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 #2:Pertumbuhan Start-Up

3rd Rank
www.startupranking.com
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Huge Connectivity Base

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 #3:Maksimalisasi Ekosistem
Inovasi Bisnis berbasis teknologi memberikan peluang
dalam:
Pencocokan produk keuangan dengan struktur biaya
dari UMKM yang perlu bertumbuh (fitur aplikasi,
proses bisnis, dll).
Mengidentifikasi peluang pasar yang belum tersentuh
atau belum dikembangkan dengan optimal.
Membuka peluang terhadap penguatan ekonomi
regional dimana ekosistem tersebut ada.

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 #4:Solusi Sistemik
Tumbuhnya UMKM mendorong penggunaan
digitalisasi transaksi ekonomi
Fasilitas pembayaran menumbuhkan marketplace
penyedia jasa pembayaran.
Penyedia P2P lending mendorong pembiasaan
Pendanaan usaha bagai unbankable society.
Kedepannya literasi keuangan yang meningkat
diharapkan menguatkan kemandirian dunia usaha dari
keterbatasan akses modal.

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Modelling and Real world
Simulation /Phenomena

Big Data Analysis

Courtesy: Manahan Sialagan

Business Prototype

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FinTech Financing Potential INA 15-21

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Impact of FinTech on Islamic Finance

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 “a wealth of information creates a poverty of attention” Takeaways
― Herbert Simon”

Current FinTech Landscape Opportunity &

Evolvement Challenge

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 Technology disrupts, Wisdom stays
• Two Sided Market
• Platform Organization
• Network Effect
• Search & Transaction Cost
• Demand economies of scale –
Feedbacks, claps, comments,
stars, complaints
• Economics of Attention
• Switching Cost and Lock-in
• Metcalfe and Moore Law

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 Takeaways
• Integrated platform digital sharia fintech
• Maintain agility and adaptability
• Able to analyze current development with evolving
econtech-wisdom
• Team up to test new approaches and seek opportunity
• Establish clear vision for transformation and to match
opportunities and value proposition.
• Collaboration banking – fintech to reach customers and
to access low cost funding.

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 Takeaways
• Regulatory risk-based supervision approach to fintech
innovation:
– Regulation must take into account the innovation
– Balancing the innovation environment with the mandate of
supervisors in consumer protection
– Strenghtening insurance capital solvency due to increasing risk
and dynamic environment
• Better coordination with other authorities association and
industry to create safe environment (e.g data protection,
cyber security, better infrastructure
• Get involve and contribute in a completely new
educational system that promotes agility and data driven
awareness.
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End

~ escape is an anti pattern ~

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