STRATEGIC INITIATIVES TO INCREASE MARKET SHARE IN BRI’S WHOLESALE TRANSACTION BANKING: A HOLISTIC SOLUTION

• Main Author: Reza, Thessalivia
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75997
• Institution: Institut Teknologi Bandung

Covid-19 pandemics create not only opportunities across the worldwide banking industries, but also many challenges. Furthermore, banks have to develop and digitize the products, services, and business models. Digitalization is mostly needed in transaction and payment to provide the customer needs, not only for retail customers, but also for wholesale customers as B2B business between banking and the customers. Transaction banking has increased the bank's revenue every year throughout the years, not just globally but also in Indonesia. Despite of increasing trend of transaction banking in Indonesia, BRI hardly maintain the market share between two big competitors in wholesale segments, particularly in cash management transaction volume. So, the main objectives of this research are to understand the condition and main problem of BRI transaction in wholesale banking. Furthermore, to identify the strategic initiative and construct the implementation of the strategic initiative to increase market share in BRI’s wholesale transaction banking. The researcher conducts the conceptual framework of competitive advantage influenced by the internal and external environment. The existence of competitive advantage can be examined by measuring performance, including market share and profitability. Both primary data and secondary data were used in this research. Primary data is obtained from in-depth interview with the user of online transaction in wholesale banking BRI and other banks, while secondary data is from annual report, market data and some company’s internal data. By VRIO’s framework in internal analysis and Porter’s 5 Forces in external analysis, the researcher found the root cause of BRI’s market share is lack of prioritization of priority segment to understanding the ecosystem and Relationship Manager (RM)’s workload & lack of support for marketing program. BRI has a good product with the newest technology and the complete feature, like Qlola by BRI, However, due to the new product, BRI still lack promotion of the product, particularly by RM in wholesale banking. Based on understanding the customer behavior, ecosystem also plays an important role to gain the sustainable transaction’s volume. Furthermore, BRI still lack of strategy to optimize the business ecosystem of the customer. Based on go-to-market strategy, researcher recommend BRI to set the prioritization of the customer and new positioning of the product of transaction banking. BRI also needs to strengthen the sales and marketing team as the important channel to sell the transaction product. And on the product sides, BRI needs to optimize the ecosystem advantage as value proposition of BRI’s transaction product.