REVITALIZING BANKING: AN IN-DEPTH ANALYSIS OF BUSINESS MODEL PERFORMANCE IN INDONESIAN DIGITAL BANKING – NEO-BANKS VS UNIT BUSINESS BANKS.

• Main Author: Friza Azhar, Evania
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/80692
• Institution: Institut Teknologi Bandung

The banking sector is one of the many industries being disrupted by digitalization. To create customer-centric digitization, the industry is incorporating digital plans into corporate strategies. The banking industry is transforming all of its services to digital forms and moving to digital banking systems without physical locations. It is anticipated that this change would boost the efficacy and efficiency of work processes, raising the caliber of service offered to bank clients. Either from the ground up, with a minimum core capital of IDR 10 trillion, or by converting preexisting banks into digital ones, digital banks can be founded. The study uses the T-Test Analysis approach to calculate the business model bank performance of Indonesian commercial banks, focusing on digital banks. The research uses quarterly reports from 2020 to 2023 to collect secondary data. The study includes Digital Banks in Indonesia, including 4 neo-banks and 14 unit business banks. The results show a significant difference in bank business model performance between unit business banks and neo-banks. The unit business bank's business model is more comprehensive because it incorporates a holding company and involves multiple sectors to support its ecosystem. In contrast, the neo-bank, which was formed in 2020, lacks a holding company and has a smaller scope. Nevertheless, due to its customer-centric focus, it has a different ecosystem and performance.