ABSTRACT : Along with the current digital era where the banking industry and the influence of financial technology are rapidly growing, banking collaboration with FinTech and its current and future challenges have attracted the attention of banking practitioners, FinTech industry players, and academics. Analysis of the present and future challenges of collaboration models of banks and FinTech, especially in Indonesia, is a problem that needs to describe in this research. The purpose of this descriptive study emphasizes descriptive analysis related to the challenges of developing bank and fintech collaboration models in the present and future in Indonesia. The research methodology uses a descriptive method with a qualitative approach. This study uses perception analysis to determine the appropriate collaboration model for current and future conditions based on triggers of current trend-watching. The perception survey data had collected from 100 respondents representing the banking, FinTech sectors, and academics. Data on the development of collaboration models had obtained from literature studies and field surveys of 10 banks that have utilized FinTech. The results of this study reveal the need for detailed and complete policies, laws, and regulations related to collaboration which are still the main challenges in banking and Fintech collaboration in Indonesia. In Addition, the Channeling model is still relevant to be used today as a collaboration model. Other results state that for future challenges bank and FinTech collaboration model will lead to the development of the Open Banking APIs Concept and Super App model owned by banks due to Fintech collaboration. The results of this descriptive study will expect to contribute significantly to government policy and considerations in developing a suitable banking and FinTech collaboration model for the present and future in Indonesia.

KEYWORDS – banking, collaboration, challenges, fintech, model