Indonesia has the potential to become the biggest digital economy in Southeast Asia given its 130 million active social media users. The rapid growth of internet users, coupled with improvements in the telecom infrastructure and an increasingly supportive regulatory framework, are key drivers enabling digitization in the country. Yet many industries, including the financial services sector, are still lagging in terms of their digital initiatives. Many retail banks still choose basic customer transactions to this day. With over 150 million Indonesian citizens unbanked and 85% of transactions still relying on cash, Indonesia plans to move towards a cashless society to support financial inclusion. In this article, Gervasius Samosir, Associate Partner, writes exclusively to Forbes Indonesia on the digital imperative in Indonesia's banking industry. He points out 5 core competencies needed for incumbent and challenger banks in making the first step towards digital transformation. 

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