THE IMPACT OF FINTECH ON BANKING INDUSTRY: HOW BANKS IMPROVE BUSINESS PROCESS IN LIGHT OF FINTECH ERA, CASE: BANK BRI

• Main Author: HARYO PRABOWO (NIM 29114003), DIMAS
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/26659
• Institution: Institut Teknologi Bandung

The industry of financial technology (FinTech) shows rapid development throughout 2017. FinTech able to reach and serve loans for MSME with nominal that can not be served by conventional banks. Bank BRI has realized the rapid development of FinTech and this paper is to identify the impact of FinTech development on the conventional banking business. The research is based on the importance of business innovation in Bank BRI, especially in facing the FinTech industry who offer speed and simplified process. <br /> <br /> The research framework begins with business issues, business situations in the FinTech industry, and internal corporations that affect the changing business processes of Bank BRI. This study is using interview based, focus group discussion and benchmarking data from other competitors using case study method. This study were obtained through reviews literatures and business policy, interviews with experts. <br /> <br /> The results of the research show that there are two root causes that need BRI Bank to do the transformation, which is still conventional business process and behind the IT support. The authors propose two solutions for business process improvement at Bank BRI to be ready in the face of attacks from FinTech that is the change of business process to full digital and change the concept of work for the employees of Bank BRI. <br /> <br /> Bank BRI requires implementing plans and strategies to achieve its strategic objectives. Business process transformation is carried out from starting a review of the current business process, working with the FinTechs to the launch of the officeless app as the end of the transformation process.