This paper examines Indonesia’s banking sector, particularly the development of financial technology (fintech) over recent years. The study conducts a firm-level survey to observe banks’ current level of technological adoption and to capture banks’ perceptions toward fintech development. We also perform secondary data analysis using Indonesian commercial banks’ data from 2005 to 2017 to see whether fintech development has impacted banks’ efficiency. The survey findings reveal banks are still at an early stage of technological adoption, with high usage of internet and mobile banking platforms. Indonesian banks are aware of and responsive to fintech development, but do not perceive it as a threat or a new competitor. In addition, our regression analysis shows factors such as market competition and level of risk aversion have significant impacts on banks’ efficiency, such that a lack of competition may result in higher inefficiency. This paper suggests encouraging more competition and technology adoption within the banking sector, to increase efficiency as well as coverage, through fostering fintech development in Indonesia.