INVESTMENT PROJECT ANALYSIS OF DIGITAL BANK DEVELOPMENT

• Main Author: Lyonnais, Hanif
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/65163
• Institution: Institut Teknologi Bandung

Technology is developing quickly and driving digital transformation in various businesses, including banking. Banking is one of the oldest businesses in the world. Known as one of the most conventional businesses, it prioritizes trust and human relationships. In the end, the banking industry must also follow technology and develop digital services. This is what became known as digital banking. The number of internet users in Indonesia continues to grow every year. The number of account holders continues to grow, but some people still do not get banking services, known as unbanked. The unbanked is a tremendous potential for banks to reach them with technology by developing digital banking. The research was conducted using quantitative methods to achieve the research objective. The research begins with business issues, the current banking situation, and the opportunities of the increasing number of internet users. Industry analysis was conducted using Porter’s five forces. The digital bank concept was built with segmenting, targeting, and positioning strategies. Then, user projection, financial projections, and investment analysis were modelled. This research results in the user projection of the digital banks, identification of sources of income, and projections of cash flow with these products. Based on the projection, the digital bank project would generate an NPV of IDR 176,03 Billion and an IRR of 36,69%. This investment would break even point in two years and ten months with a profitability index of 2,32. This result indicates that this project would be feasible and benefit bank BJB.