A commissioned survey of 350 decision makers in six APAC countries showed what the Indonesian respondents’ challenges and priorities were.
According to a recent Forrester Consulting white paper commissioned by FICO, Indonesia’s financial sector is in the early stages of data and analytics maturity. While the majority of Indonesian lenders polled were currently in the development or exploration stages of their advanced analytics strategy, they faced challenges in executing these strategies with confidence.
The survey was conducted in Sep to Oct 2022, with 353 CXOs, senior leaders and decision-makers responsible for advanced analytics or digital transformation (DX) strategies, and respondents were from Singapore, Thailand, India, the Philippines, Indonesia, and Malaysia. A total of 57 respondents took part in Indonesia.
Based on this methodology, the white paper reported the following:
- 84% of respondents were committed to developing an advanced analytics strategy in 2023, while 79% were still in the exploration phase, assessing its viability for their businesses.
- Over half of respondents from Indonesian financial services institutions (FSIs) were poised to take action, with 67% gearing up to build more data applications, 59% looking to leverage predictive analytics and machine learning, and 54% aiming to centralize customer data on specialized enterprise platforms in the next one to two years.
- Nearly 49% of Indonesian FSIs were also planning to create a center of excellence for business intelligence, advanced analytics, data science, and/or AI over the next twelve months. However, more than half of Indonesian FSIs implementing or expanding data operations practices (56%) and data integration initiatives (61%) were doing so without a comprehensive strategy. Around half of these respondents expressed confidence or a high level of confidence in carrying out these initiatives (46% for data operations and 53% for data integration practices).
- 74% of business decision-makers among the Indonesian respondents indicated they prioritized improving customer experience — with leveraging advanced analytics-driven initiatives to drive customer experience outcomes ranking fifth on the list of operationalizing priorities, behind other objectives such as increasing revenue growth, improving customer acquisition, and enhancing productivity gains.
- 77% of Indonesia respondents faced technology obstacles in the integration of solutions; 77% faced constraints due to legacy technology, and 75% indicated facing challenges finding suitable AI/ML/advanced analytics models.
- 37% of Indonesian respondents reported budgetary constraints as a key challenge in operationalizing their advanced analytics strategy. Within the survey population, Indonesia had the lowest average annual budget for data analytics and procurement, with a mean allocation of US$320K, compared to the mean value of US$464K.
- 46% of Indonesian respondents faced other obstacles such as a lack of cross-functional collaboration; skills and experience shortages (46%); competing business priorities (44%); a lack of appropriate data and analytics processes (39%), and a perceived lack of readiness to implement data governance practices (37%).
According to Dattu Kompella, Managing Director (Asia), FICO, with the right technological support and a strategic vision:
“A platform approach can help slay complexity and give banks the confidence to better integrate and operationalize data to arrive at faster, more accurate decisions.”
By embracing the fast-follower approach, organizations in the country can
“leapfrog ahead in operationalizing advanced analytics by adopting proven industry-focused financial technologies and operational know-how from trusted partners,”
