FINANCIAL STRATEGY AND DECISION MAKING TO INCREASE PROFITABILITY AT BANK CIPTA SYARIAH POST PANDEMIC

• Main Author: Afriza, Rizky
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/80909
• Institution: Institut Teknologi Bandung

The impact of the COVID-19 pandemic has caused financial institutions and the economic sector in Indonesia to decline. Although society as a whole was impacted by the crisis, certain financial institutions were able to expand their operations by serving the most dynamic sectors of the economy. Bank performance is very important in business banking to show its credibility in order to encourage people to use the bank's services. The aim of this research is to determine the influence of internal (FDR, CAR, NPF) and external (Covid-19) factors on profitability (ROA) and determine strategies to improve the financial performance of Bank Cipta Syariah in Indonesia. This research uses a mixed method of quantitative and qualitative analysis. This research uses a quantitative descriptive method with secondary data sourced from the Bank Cipta Syariah annual report obtained in 2018-2022. The dependent variable in this research is Return On Assets (ROA), while the independent variables are CAR, FDR, and NPF. This research uses a qualitative approach with AHP and interview methods. The results of this research show that the impact of Covid-19 has given rise to various risks faced by the Bank industry, starting from asset income which has decreased compared to the time before Covid-19.Cipta Sharia banks that have good profits are expected to be able to maintain existing customers by continuing to improve products and services as well as technology, cost transparency, customer satisfaction aspects, sharia aspects of products and also development programs for the community which are increasing day by day loyalty. The business strategy implemented by sharia banks in facing competition during the Covid-19 pandemic is that sharia banks always carry out risk mitigation, one of which is by restructuring financing due to the Covid-19 pandemic which has resulted in the real area being determined to disrupt debtors' ability to pay. The use of technology such as digital banking has become a new service innovation to best meet the needs of customers or potential customers. The benefits of bank digitalization are mainly in reducing operational costs, banking digitalization is a long-term investment. Financing to Deposit Ratio (FDR) has a positive and significant influence on Bank Cipta Syariah's profitability as proxied by Return On Assets (ROA), Capital Adequacy Ratio (CAR) has a significant positive influence on Bank Cipta Syariah which is proxied by Return On Assets (ROA), Non Performing Financing (NPF) has a positive and significant influence on the profitability of Bank Cipta Syariah which is proxied by Return On Assets (ROA). From the results of this research, in dealing with post pandemic, researchers suggest that Cipta Sharia Bank, should revise its strategy for getting customers and provide new innovations to employees so they can survive, carry out measurable expansion and breakthroughs into digital segments that can be taken by sharia banks. As well as the momentum for Islamic banks to train their employees to become reliable digital marketers.