Banking Digitalization for Financial Stability and Inclusion

Abstract

Cloud computing has emerged as a key catalyst in the digital transformation of the global financial sector, including Indonesian banking. This cloud-based technology provides significant benefits such as cost efficiency, operational flexibility, and high scalability, enabling financial institutions to manage data effectively while delivering innovative services. In Indonesia, the adoption of cloud computing coincides with rapid digital acceleration, stronger collaboration with fintech, and regulatory pressures from the Financial Services Authority (Otoritas Jasa Keuangan/ OJK) to maintain financial system stability. While opportunities for innovation are substantial, challenges also persist, particularly regarding cybersecurity threats, personal data protection, and compliance with national regulations. The competitive dynamics between traditional banks and fintech require strategic adaptation to ensure sustainable growth. This literature study analyzes current trends in Indonesian digital banking, highlighting opportunities for financial inclusion through cloud–fintech integration while underlining the urgent need for adaptive regulation, skilled human resources, and structured migration strategies. Ultimately, a secure, inclusive, and sustainable financial ecosystem depends on aligning technological adoption with robust governance and regulatory frameworks.