CHALLENGES AND PROBLEMATIC OF BANKING INDUSTRY SERVICES IN THE TRANSFORMATION OF DIGITALIZATION INNOVATION
Febri Noor Hediati, May lidya

Fakultas Hukum Universitas Mulawarman

Abstract

Dynamic technological advancements have led to significant transformations within the banking industry. Digital transformation is regulated under POJK Number 12/POJK.03/2021, which encompasses not only the transition from conventional to digital banking but also digital innovations that generate substantial operational cost efficiencies, system optimizations, and enhanced convenience for customers to transact independently. While digitalization in the banking sector benefits both banks and customers, it simultaneously poses challenges, legal protection issues, and legal consequences regarding the loss of customer funds in digital banks. This study employs a doctrinal research method with a statutory approach. The findings indicate that challenges faced by the banking industry in the digitalization era include building public trust, technological and cybersecurity risks, operational risks, regulatory and supervisory challenges, as well as public financial literacy. To address the issues concerning customer funds in the banking sector, banks must ensure reliable security systems, transparency of product information and risks, strict Standard Operating Procedures (SOPs), secure and robust IT systems, and the preservation of system and data security. Under Articles 4 and 7 of Law No. 8 of 1999 on Consumer Protection, the principle of presumption of liability serves as the foundation for fund losses resulting from phishing or system failures- hence, banks are obligated to prove the implementation of cybersecurity in compliance with POJK No. 6/POJK.07/2022 and Article 245 of Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (UU P2SK). The legal consequence for the loss of customer funds in a digital bank includes compensation for unlawful acts (Perbuatan Melawan Hukum) if the bank is proven negligent in maintaining its system security.
Keywords: Challenges, Problematics, Banking, Digitalization

Keywords: Challenges, Problematics, Banking, Digitalization

Topic: Technological Moderation for Collective Legal Response (Legal Innovation- Collaborative Regulation- Technology and Law)