ANALYSIS OF ORGANIZATION READINESS AND PROPOSED BUSINESS STRATEGY TO EXPAND ITS BUSINESS; CASE STUDY MAJO SATI FINTECH LENDING

• Main Author: Riza, Faisal
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53560
• Institution: Institut Teknologi Bandung

The development of the fast growing Fintech ecosystem in Indonesia, mostly driven by the government by issuing regulations in various fields including peer-to-peer (P2P) loans knowns as fintech lending. Government hope it will encourage innovation and improve financial inclusion. In indonesia 50% of fintech company are get in to Lending business. Loans are still the biggest market because of the inability of conventional financial institutions to help accelerate financial inclusion especially in rural areas. With better access to financing, the micro, small and medium enterprises (MSMEs) in Indonesia will become the engine of economic growth. Opportunity arises for MSMEs since majority are still underserved by financial institutions. According to a report by PwC Indonesia, there are more than 63 million businesses belonging to the MSME segment in Indonesia, where a majority of MSMEs still do not have access to credit or any kind of formal funding. Therefore, there is a huge opportunity for fintech lending to tap into this matter to help increase much needed access to credit. Fintech lending overcomes the challenges faced by conventional lending by utilizing a combination of different business models, technology, and innovative approaches. Thus, allowing Fintech lending to achieve wider coverage within remote areas will solve infrastructure and risk management challenges that are typically faced by conventional financial institutions in serving untapped segments. Majo Sati fintech lending come as the first regional fintech lending in Sumatra island which fousing in giving prodictive loans to MSME’s and farmers. This research is to find out organization readiness to expand and proposed business strategy for Majo Sati. There are 3 question should be answered by this researcs which is : how ready the organization to expand, what is external factors that will affect expansion strategy and proposed business strategy. Using VEOP framework to analyze internal factor and 2 frame work to analyze external factors which is : PESTEL and Porter’s Five Forces anlysis. In terms of business expansion plans, Majo Sati's organization is currently not ready. Two main things are needed to do before doing business expansion : 1) recruiting professionals as COO (Chief Operation Officer) to carry out daily operational functions and also 2) urgently required to carry out a full automation process. In terms of business strategy, there are 3 proposed business strategies to accelerate Majo Sati's business growth are as follows : 1) scheduled socialization to the potential customers in collaboration with local government to increase financial and digital literacy in Lampung province, 2) Open for financing from trusted Venture Capital to invest, 3) Create branches outside Lampung in Sumatra region by cooperating with local companies that can provide sources (local infrastructure and people)