BUSINESS STRATEGIC DEVELOPMENT TO ENHANCE FINTECH PEER-TO-PEER LENDING INDUSTRY IN INDONESIA

• Main Author: Ananta Sudirman, Friyanti
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/35498
• Institution: Institut Teknologi Bandung

In the era of technology, Financial Technology (Fintech) is the new business model that has significant growth in the world including Indonesia. The financial services industry are the backbone of any economy, enabling anybody to save, invest, borrow money, doing payment and another financial service. The booming of companies to entered the business shows that the industry is very attractive yet promising. Indonesia with a population that reaches 265 million people and has a high consumptive behavior adopting the technology fastly hence the emergence of digital business cannot stop. Fintech company especially peer-to-peer (P2P) lending business model is one of the digital business that is significantly growing high in Indonesia. This trend is supported by the Indonesian citizen that majority is still unbankable and untouched by the formal Financial Institution that is the potential user of the services. P2P lending companies were growing for more than 100% since it’s initially booming in early 2016. In the initial stage of the industry development, P2P lending companies facing lots of challenge and opportunities. On the other side, Indonesia government still need to adapt and add its knowledge to regulate the industry. P2P companies have to be smart in taking the opportunities to enhance the business as well as prepare a comprehensive analysis to see the potential in the future and prepare the strategy to tackle the issue. Hence the P2P companies and the industry will be sustainable in the future. The situation and problem that facing in running the business in P2P lending industry will be analyzed from an external point of view using PESTEL (Political, Economic, Social, Technological, Environment, Legal) approach and from the industry point of view using Porter’s 5 Forces Analysis. To do further analysis for internal point of view using resources based view, value chain analysis, SWOT (strength, weakness, opportunity, threats) and business model canvas. The research methodology is using a qualitative approach, direct observation, and data gathering by joining the events that held by Financial Service Authority (OJK) and Indonesia Fintech Association. Gathering information through an interview with the decision maker include the government (OJK), association, industry player and other institutions that related with P2P lending industry. Interrelation among the stakeholders, collaboration through strategy alliance dan TOWS analysis will be a recommendation to enhance the P2P lending industry sustainability in the future.