Dyota M. Marsudi, CEO of Bank Aladin Syariah, said he hopes to foster collaborations with Korean companies in the fast-growing digital banking sector.

Bank Aladin Syariah is a digital banking institution under the supervision of the Financial Services Authority in Indonesia and a member of the Indonesian Deposit Insurance Corporation (LPS).

Marsudi envisions digital banking as a strategic approach with a core commitment to Sharia banking principles, focusing on serving customers and enriching society.

Sharia banking principles adhere to the guidelines prohibiting speculation, gambling, taking interest on loans, and investments involving items or substances forbidden in the Quran.

He underlined that a significant proportion of 77 percent of Indonesians still lack access to fundamental banking services, including funding and financing products.

To bridge this gap, Marsudi aspires to unite Bank Aladin's local expertise with Korean firms' know-how in promoting digital banking services as well as their capabilities in creating global brands.

"Based on local knowledge that we (bring), combined with the experience of Korean companies in creating global brands and trends, like K-pop, I am sure that through discussions there will be products and campaigns that we can launch to reach this segment," he said. "Korea has successfully banked most of its population and launched meaningful campaigns in digital banking."

Marsudi was in Seoul last month to attend a forum where he met many industry stakeholders.

He said he believes that Indonesian banks can get insights from Korean counterparts and partners who have brought the financial services sector in Korea into the digital age.

The Southeast Asian country could be a lucrative market for Korean financial companies as well, referring to the country's business-friendly environment, a growing middle class, a digitally savvy population and robust consumption rates, he said.

He also underlined the need for Korean companies to acquire local knowledge about Indonesia, considering the high-context cultural nuances in the country.

"Sometimes, there are unspoken and unwritten aspects that you need to be aware of when dealing with customers, partners, and local and central governments. But by working with the right partners and spending time in Indonesia, I am confident that Korean companies can thrive here."

Marsudi assured that Bank Aladin would be a reliable partner for Korean businesses and urged them to leverage Indonesia's stable democracy and rule of law.

When asked about the growing challenge of digital fraud and cyber scams in the digital banking sphere, Marsudi emphasized that these issues can only be resolved through collective efforts and understanding among various stakeholders in the financial services sector.

He called for customer education in financial literacy, advising individuals not to disclose sensitive information such as PINs, passwords, or OTPs and cautioning against dealing with people soliciting money, whether for charity or during transactions, to prevent sending money to unintended recipients.

When asked how digital-based Sharia banking can enhance and personalize the customer experience, Marsudi stressed the importance of offering great products and services that align with customer needs and expectations.

He encouraged making these services and products available at a price point that benefits both customers and allows banks and investors to retain a healthy return on investment, a financial metric that measures the relationship between net income and the initial investment or cost.

As the interview drew to a close, Marsudi extended a warm invitation to CEOs of Korean corporations to the Korea-Indonesia Economic Forum scheduled to be hosted by The Korea Herald in Jakarta next month.

Marsudi is the president, director, and CEO of Bank Aladin Syariah. He began his role in April 2021 and was officially recognized for his "fit and proper" assessment by the Financial Services Authority of Indonesia (OJK) in November 2021. He holds an advisory position as an Independent Investment Committee Member in the Merah Putih Fund, a $300 million fund affiliated with the Ministry of State-Owned Enterprises. Before joining Bank Aladin, Marsudi served as a senior executive director in the investments team of Vertex Ventures SEA and India, a venture capital fund supported by Temasek, located in Singapore. He is the son of Indonesian Foreign Minister Retno Marsudi.