PROPOSED PRIORITY BANKING SERVICE STRATEGY FOR BTPN SINAYA TO SUSTAIN THEIR COMPETITIVE ADVANTAGE (COMPARATIVE STUDY OF BTPN VS. DBS)

• Main Author: Zahrana
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53371
• Institution: Institut Teknologi Bandung

Priority banking service has become a hygiene factor for most established banks. Commonly, priority banking services are established because there is a need for banks to appreciate customers that have contributed significantly to their funding volume. This appreciation usually comes in forms of special privileges and benefits—with hope to increase more funding and obtain customer’s stickiness. BTPN Sinaya, whose role and responsibilities in BTPN is to provide ample funding volume, have not provided a Priority Banking Service up until the year 2020, although 5% of their customer base contributed to 80% of the business’ funding volume. Eventually BTPN Sinaya decided to provide a priority banking service in order to serve their customer better. However, because BTPN Sinaya is considered to be a late player in giving priority banking service to their customers, the problem would be how to provide a differentiation and sustain their competitive advantage for the offered service. Currently, their chosen strategy is to leverage Jenius as the key differentiator—offering a first digital priority banking service in Indonesia, with the tagline “Sinaya Prioritas, Digitalizing Your Priority” as the unique value proposition. This strategy will be assessed further with comparison to other competitors that are offering similar service, specifically with a Bank that also focuses on utilizing their digital application which is DBS. The assessment will be done externally through the frameworks of PESTEL, Porter’s Five Forces and Competitor Analysis, and internally through the frameworks of STP and VRIO. This assessment will identify the similarities, differences, strengths and weakness of the current strategy toward competitor. Furthermore, business strategy formulation will be developed through the framework of Strategy Diamond model, followed by recommendations and implementation plan within the year of 2020 – 2021.