UGM and the UGM Alumni Family (KAGAMA) discussed the widespread use of AI in the financial sector in a webinar themed “AI and Strengthening Inclusive Finance” on Saturday (November 25).
“We know that in this rapidly changing era, various landscapes are already entering the digital era. Banks have started to close in various countries because people have completely switched to digital. But here in Indonesia, we face challenges because access to banking is still low. So, not all people have access to banking or other financial institutions,” said Dr. Aagn Ari Dwipayana, the Secretary-General of the Kagama Central Management and the Special Staff Coordinator to the Indonesian President.
Indonesia is still far from being considered Go Digital. People’s access to banking is only around 40%, with most users still based in urban areas. The use of banking services is also limited to saving and withdrawing money.
However, the hope is that people can use banking services to manage their businesses. To reach the next stage, digitizing the financial system, there needs to be stronger commitment and encouragement so that people are willing and confident to use current digital services.
Friderica Widyasari Dewi, a member of the Board of Commissioners of the Indonesian Financial Services Authority, explained the implementation of AI in the financial sector.
“AI generally covers end-to-end business processes in the financial services sector, from the back office to the front office. For example, AI checks potential consumers in activities such as asset management and credit approval,” Dewi said.
“AI is also used to communicate through chatbots and develop personalized recommendations related to financial services. However, there are various risks, such as data leaks.”
The convenience offered by AI has negative impacts on one side. The lack of supervision or human intervention can make the system vulnerable to hacking. Therefore, there needs to be a strengthening strategy to promote data resilience and security.
In addition to preventive measures for AI systems and management, public awareness needs to be increased. As users, the public needs to be aware of various fraud schemes that can potentially cause data leaks.
The data accumulation process for AI requires high-quality data in large quantities. One of the challenges faced in applying AI in the financial sector is the limited availability of publicly published data.
On one hand, data is an essential element that needs to be kept confidential. On the other hand, data also plays a crucial role in driving technology implementation in various sectors. Therefore, it is essential to build inclusive policies that cover the responsibility of consumer data usage.