Transforming Indonesia's Digital Banking through Open Banking and Fintech

Abstract

Open Banking has emerged as a new paradigm in the global financial industry, enabling banks to securely share customer data with third parties through Application Programming Interface (API) based on the explicit consent of customers. In Indonesia, the adoption of Open Banking has become increasingly relevant in line with regulatory initiatives from Bank Indonesia and the Financial Services Authority, as well as the rapid growth of collaboration between major banks, fintech companies, and e-commerce platforms. This study employs a Systematic Literature Review (SLR) method to comprehensively analyze the implementation of Open Banking in Indonesia, focusing on the dimensions of regulation, innovation, collaboration, and challenges related to consumer data protection. The findings reveal that Open API plays a central role in building a more efficient, integrated, and competitive financial ecosystem. However, the main challenges include the urgent need for API standardization, ensuring strong data security, and improving the readiness of digital infrastructure. The study concludes that the successful implementation of Open Banking in Indonesia requires synergy between regulatory frameworks, technology adoption, and consumer awareness regarding the tangible benefits of digital financial services.