Financial technology, or fintech, has experienced tremendous growth during the "new normal" era triggered by the Covid-19 pandemic. The high potential for user growth and a significant increase in digital transactions in the future are expected to drive progress in the fintech industry. In Indonesia, the fintech sector has a promising outlook, as highlighted in the East Ventures - Digital Competitiveness Index (EV-DCI) 2023.

"This positive outlook is closely related to the relationship between the number of digital transactions, financial literacy, and financial inclusion," according to the latest report from EV-DCI. Financial literacy encompasses the knowledge, skills, and confidence that shape attitudes and behaviors in decision-making and financial planning for improved well-being. This helps individuals make informed choices about products and services that meet their needs.

On the other hand, financial inclusion means that individuals and businesses have access to beneficial and affordable financial products and services to meet their needs, including transactions, payments, savings, credit, and responsible and sustainable insurance.

According to the EV-DCI 2023 Report, there has been a 32 percent increase in digital transactions compared to 2019. This surge is also accompanied by a 17 percent increase in financial literacy and a 20 percent increase in financial inclusion. "This data indicates progress in awareness and access to financial facilities, contributing to better economic stability and prosperity," says the EV-DCI report.

The report also notes that one of the key factors in the success of fintech in Indonesia is the rapid adoption of digital payment platforms. These platforms, such as digital wallets, online banking, and the Indonesian QR Code Standard (QRIS), have simplified financial transactions from the traditional offline world to the online realm.

Before the pandemic, the use of digital wallets was only around 10 percent. However, in 2020, the percentage of digital wallet usage surged significantly, reaching 44 percent. Quarantine and social restrictions during the pandemic accelerated the adoption of online shopping, with e-commerce becoming the primary channel for consumers and businesses. The result was a staggering 40 percent year-over-year growth in e-commerce during the first half of 2022. Even more impressive, 53 percent of e-commerce users prefer e-wallets as their preferred method of payment.

This indicates that trust in digital payments is increasing, in line with the findings of the report.

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