The existence of the internet in maximizing digital services may be considered a part of human routine in the modern era, while these services can be accessed at any time and from any location. This routine is prompted by the expansion of Indonesia’s retail sector, which is progressively moving toward digitization, resulting in the banking industry reacting by offering online services such as mobile banking and internet banking.
Digital banking is a digital payment method that does not require cash or an ATM card; instead, you may make payments and cash withdrawals using a smartphone linked to the internet network and a mobile banking application.
Yet, digital banking services pose several concerns since consumers’ personal data will be housed in a single database, making it open to cyber assaults. Data leakage in the banking business may be disastrous, because the banking industry stores personal and property-related data.
This is why, while offering services to consumers, the banking business need effective cyber threat prevention. Further information on what the banking industry can do to safeguard itself may be found in the following article.
How far has digital banking progressed in Indonesia?
How far has digital banking progressed in Indonesia
With the advent of the Fourth Industrial Revolution, the banking industry has emerged as one of Indonesia’s fastest expanding industries. People’s lifestyles and spending levels have expanded dramatically during the pandemic recovery era, thanks to the advent of e-commerce that depends on digital payments.
As compared to prior years, the use of technology in the service industry has boosted the value of financial transactions in Indonesia. According to Bank Indonesia’s 2021 financial report, the growth of digital transactions in Indonesia has risen swiftly, by 1,556 percent, with total electronic money transactions reaching IDR 786.35 trillion in 2021.
Threats to Data Privacy and Security in the Digital Banking Era
In addition to the numerous opportunities and conveniences provided by digital banking services, digital transformation also create issues that must be addressed, such as the danger of data leaks and cyber attacks. These two factors are prompted by a lack of human resources with digital financial literacy in Indonesia, as well as an unequal technology infrastructure and regulatory frameworks.
According to the most recent Check Point Software Technologies survey, cyber assaults against the banking industry are the second most common type of cyber attack. The typical Indonesian financial institution is attacked 2,730 times per week, 252 percent higher than the global average.
The Benefits of Distributed Database Technology Over Conventional Databases
One of the reasons for the banking industry’s vulnerability to cyber assaults is that the system currently depends on a single access control to keep all of their vital data. This is a typical database management system that stores data in a single data center utilizing the same network.
Yet, industrial banking still has a lot to consider about since altering the management system is not easy with large volumes of data, organizational structure alterations, human resources, and so on. As a result, proper technology solutions, such as distributed databases, are required to overcome these challenges.
As is well known, distributed databases are one of the solutions for reducing the risk of cyber attack risks or data leaks. A distributed database is made up of two or more databases, where files can be stored on the same or other networks. These systems are often composed of many bits of data that are physically stored in various locations and dispersed among multiple database nodes.
Moreover, distributed database solutions have the benefit of depending on the following features:
- Hardware is not required,
- Independent operating system,
- Distributed transaction management,
- Not restricted to a certain location,
- Distributed queries.
TDSQL Distributed Database Solution from Tencent Cloud
Tencent says that the TDSQL solution is a database solution with the benefits of high performance, integration, and strong consistency. This solution has also been used all over the world to unify international firm security standards, such as intelligent DBA, automatic operation, monitoring, and security alarms.
Many international and national awards and accreditations have also been given to TDSQL for its distributed database services in public or private clouds. More than 500 government customers and organizations have used these services in a variety of industries, particularly banking, insurance, securities, internet finance, IoT, and government services.
Moreover, the TDSQL distributed database will reap several benefits. Here are some of them:
Sharding otomatis yang memudahkan distribusi data di berbagai database dan akses secara langsung.
- With automated sharding, it’s easy to spread data across multiple databases and get to them directly.
- Compatibility with MySQL Syntax, including language structures, characters, data types, and functions used by DDL, DML, and DCL commands to control API database access.
- It’s perfect for the banking industry, which needs to store a lot of data that will continue to grow and can’t afford to have any downtime.
- Database connection with the objective of facilitating data performance monitoring and analysis in order to quickly identify database problems.
Issues that TDSQL Implementation can Solve
Issues that TDSQL Implementation can Solve
With various advantages obtained, TDSQL can be a solution to various problems such as the following:
Bottleneck Kinerja Data Dalam Database Mandiri
Sektor perbankan yang akan dihadapkan dengan jutaan pengguna bisnis berbasis internet, pasti memiliki database mandiri yang akan terhambat dalam kapasitas penyimpanan data, akses yang terbatas, dan disaster recovery karena keterbatasan hardware dan software seiring pertumbuhan bisnis.
Heavy Workload for Database Development
Businesses using TDSQL sharding only need to change the first access code. During replacement iterations, they don’t have to worry about the old database system, which makes development easier.
Open Source Solutions to Issues
Using an open-source solution will help you solve database bottlenecks at a minimal cost. Nevertheless, concerns like system bug corrections, HR in business metrics technology iteration, and business sector emphasis must be addressed.
An Example of Distributed Database Implementation in the Case of Digital Banking
Bank Neo Commerce (BNC) was established in 1990 by the Ministry of Defense, Perum ASABRI, Pebapri, and Indonesian developers. BNC has traditionally provided Indonesian public banking for 30 years before entering the digital banking age, where it is committed to becoming a digital bank by 2020 to suit the demands of consumers in the millennial market.
Even so, with large amounts of data, high transaction frequency rates, and limited architectural data, this digital transformation is going to be challenging. To solve these problems, BNC adopted a distributed database system based on TDSQL. With a more effective and organized security system for client privacy data, BNC’s company growth in 2021 will be more effective and better structured.
Helios as a Digital IT Solution Provider for Indonesian Digital Banking
As digital banking grows, it needs an IT infrastructure that works well and is reliable, as well as a TDSQL distributed database solution. This IT technology can make sure that data is safer and help the banking industry become more digital.
Helios Informatika Nusantara provides TDSQL distributed database systems (HIN). Helios, as an official partner in Indonesia, has skilled and trained specialists to assist your organization in installing the solution to ensure your business avoids trial and error from the start to the finish.
Find out more about TDSQL distributed databases by contacting us here.
Penulis: William Wong
Content Writer CTI Group
