The Importance and the Strategy to

Boost Digital Financial Literacy

Triyono
Head of Digital Finance Innovation Group
January 2022

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Outline
1. Fintech and Digital Financial Literacy (DFL) in Indonesia
2. Digital Financial Literacy – Why is it important?
3. Digital Finance Innovation Roadmap and OJK Strategy
to Boost DFL in Indonesia

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1.Fintech and Digital Financial
Literacy (DFL) in Indonesia

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 Digital Transformation in Financial Sector
Digital Economy: Definition
Digital Transformation ADB*)
• “A broad range of economic
activities that use digitized
information and knowledge as key
factors of production”
• Contoh digitized
information: internet, cloud
computing, big data, fintech, and
other new digital technologies
Dahlman et, al (2016)
“The amalgamation of several general
purpose technologies (GPTs) and the
range of economic and social activities
carried out by people over the Internet
and related technologies”
Deloitte**)
“Growing interconnectedness of
people, organizations, and machines
that results from the Internet, mobile
technology and the internet of things
*) https://www.adb.org/news/events/understanding-digital-economy-what-it-and-how-can-it-transform-asia
**) https://www2.deloitte.com/mt/en/pages/technology/articles/mt-what-is-digital-economy.html (IoT)”
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Indonesia in The Digital Era
Population based on Age Increasing of Digital Transaction

1. The population census (2020) of the Indonesian population is

dominated by Generation Z and Millennials.
2. All Gen X and Millennials are the productive age group in
2020.
3. In seven years, all Gen Z will be in the productive age group.
Number of 202,6 million
4. Millennials have great potential in digital financial services. Users internet users
95% have owned a smartphone and 49% have used internet Internet (73,7% of the population in
banking.
Indonesia)
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Fintech Statistics in Indonesia

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Digital Financial Literacy and Inclusion

DIGITAL FINANCIAL INCLUSION

Parameter: Product Usage
Only 31,26% respondents utilized the
digital financial products and
services

DIGITAL FINANCIAL LITERACY 27,4% 66,6% 9,9%

Parameter: Product Awareness
Online Loan Bills Purchase Online
Only 36% respondents Insurance
36% acknowledged the
digital financial
4,6% 4,3%

products.
Account Opening Online Investment 7
2. Digital Financial Literacy – Why is
it important?

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The Importance of Digital Financial Literacy
Digital financial literacy is the knowledge, skills, confidence, and
competence to safely use digital financial products and services to
make sound financial decisions.
In the long term, it is estimated that all financial transactions will switch to digital
01 technology and towards cashless transactions

02 In conducting financial transactions digitally, the security is an important issue

Digital financial literacy will make it easier for someone to access financial
03 products and services

Adequate digital financial literacy skills make people life more comfortable
04 because all financial transactions are easy
Scope of Digital Financial Literacy

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Digital Finance Product and Services Utilization
Rights and
Product Scheme Price Characteristics
Obligations

Make sure it meets your Make sure the schemes Is the price offered in Understand the Understanding the

needs, has an OJK offered are fair, ethical, accordance with your features, benefits, rights & obligations as

license, and check the all fees are transparent, financial capabilities? risks, penalties and a consumer and

company's reputation the easiness of Compare with fees consumer protection

transactions, and not competitors mechanisms
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excessive
Digital Financial Services For Millenials

Human error is the main cause of 95% of cyber security breaches

(IBM, 2021)

Potential Exploitation
on Customers
Beware Careful Secret

• Beware of • Take a • Be the

any closure cyber
To-Do List potential look and ninja to
types of reconfirm your
crime sensitive
data and
credential
ones
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Challenges in Digital Financial Literacy
DEMOGRAPHY GEOGRAPHICAL
The demographics of the Indonesian population are very The geographical condition of Indonesia: an
diverse, ranging from language, culture, ethnicity, religion, archipelago that consists of more than 17.000
race and others. islands

The level of education and economy of each region in Internet access is not covered all regions in
Indonesia is different. Indonesia

Access to formal financial services is not

Strategies needed to carry out financial literacy activities in
available in some areas
Indonesia:
1. Using community approach for education and financial
literacy Out of 34 provinces in Indonesia, 21 provinces
2. Designing 10 priority targets in implementing financial are below the national level literacy level
education and literacy activities
3. Composing digital financial literacy materials based on There is a gap in the financial literacy level in
difficulty level starting from basic, intermediate, and rural and urban areas. The literacy level for urban
advanced according to each target. areas was higher
4. Developing and strengthening MOOC-based digital
financial education 13
3. Digital Finance Innovation
Roadmap and OJK Strategy to
Boost DFL in Indonesia

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Digital Finance Innovation Roadmap
Download link: https://bit.ly/3jjF9GI

Problem Statement:

1. Strengthening the digitized

finance ecosystem to be
high performance yet
responsible

2. Increasing digital financial

literacy in Indonesia?

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Digital Financial Literacy Initiatives in OJK

Digital Financial Curriculum OJK INFINITY Digital Financial Literacy

• MoU dengan KEMENDIKBUD • Menyelenggarakan peningkatan Moduls
• MoU dengan Universitas untuk kapasitas SDM Sektor Jasa
• Menetapkan 19 modul literasi keuangan
mengembangkan kurikulum Fintech Keuangan
Digital
• Fintech Center di Universitas • Fasilitas konsultasi harian
• Membuat buku, e-book, video, game
terkait Inovasi Keuangan Digital
interaktif untuk meningkatan literasi
keuangan digital
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The Launching of DFL Deliverables

“Produk, Skema, “The Storyboard of “Cyber Ninja” “Customer Support

dan Harga” Fintech Lending” Channel”

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Thank You

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