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Fintech Startup Ideas For Bank: The Implementation of Open API in BI-FAST Banking

Fintech Startup Ideas For Bank: The Implementation of Open API in BI-FAST Banking

March 14, 2022

It is crucial for banks to provide payment services that can meet the community's needs in the digitalization era, as it is part of  ideas for banks. When various parties participate, collaborate, and commit to making BI-FAST and the Payment Open API Standard successful, we will be able to realize an effective and sustainable digital transformation.

By making BI-FAST real-time and accessible retail payment system infrastructure and the Payment Standards for Open Application Programming Interfaces (Open API) for industry partners, Bank Indonesia (BI) continues to promote the quickening of the nation's economic and financial digitization.

What is BI-FAST?

In 2022, a national infrastructure for retail payments called BI-FAST allows for real-time, secure, effective, and always-available retail payments. The primary goals of BI-FAST are to assist in the end-to-end integration of digital finance and the industry-wide consolidation of national payment systems and transfer money system. Banks' customers can conduct transactions swiftly, effortlessly, affordably, securely, and dependably.

BI-FAST speeds up payments using simple and secure tools and channels in real-time and while operating around the clock. The BI-Rapid implementation aims to develop fast, convenient, affordable, secure, and dependable payment system services to hasten economic recovery and resurrect growth, including financial and economic inclusion.

As a result, at banks that have implemented it, BI-FAST payments will show up when customers want to make a transaction using mobile banking or internet banking.

An integral part of the Indonesia Payment System Blueprint 2025

In September 2021, a survey done by Statista Research Department on Indonesian consumer payment behavior found that almost 82% of respondents said they used mobile banking apps even before the pandemic. One of the most popular justifications for using digital banking was ease. Consumers could access their accounts from any location and avoided visiting a bank physically to conduct financial operations.

For example, retailers nowadays can offer their consumers the opportunity to divide online purchases into monthly installments or “Buy Now, Pay Later” (BNPL). This is thanks to the integration of financial lending services into their platform.

Among many fintech ideas for banks, the function of conventional banking institutions in Indonesia has been altered by the recent expansion of embedded financing services. In the past, banks were required for many of our financial transactions, such as loans and payments.

Fintech Startup Ideas For Bank: Open API and BI-FAST

Open API Payment Standards, one of the fintech ideas for banks, are a BI project to encourage the banking sector’s digital transformation and make it easier for open banking to foster cooperation between the banking and fintech sectors. Data, technical, security, and governance criteria are all included in the Open API Payment Standards.

Open API is an alternative to BI-FAST. With open API, BI-FAST apps will no longer be on the bank’s on-premise but BI’s on-premise instead.

To combine the nation’s digital economy and finance, Bank Indonesia will keep enhancing policy synergy and BI-FAST implementation with stakeholders in the field. Fifty-two national and regional banks have Open AI implemented BI-FAST payments at this time. Using BI-FAST payment is considerably less expensive than standard inter-bank transfers.

Three things are anticipated to be fostered by the industry’s adoption of the Open API Payment Standards:

  • Efficiency, safety, and dependability.
  • Innovation and competitiveness via bank-fintech connections to boost financial inclusion.
  • To level the playing field for banks and fintech, shadow banking risk is reduced by using regulations and comparable standards in payment Open API services.

Indonesia can then promote innovation in the digital payment system sector. Supporting fintech ideas for banks with potent embedded finance and data solutions is one of the solutions that your business can benefit from open API providers.

At Ayoconnect, we are developing full-stack solutions to power tech unicorns in the future and today’s top businesses. Supporting fintech ideas for banks with our potent embedded finance and data solutions, businesses of all sizes can easily and quickly introduce banking and payment services. This will promote financial inclusion and increase access to cutting-edge financial services.

Choose from one of our API-integrated solutions to help your business compete in this digitalized era. Schedule a demo or contact us for more information today!