Traditional banks against fintech startups: a field investigation of a regional bank in Indonesia
This research examines the way in which traditional banks are competing against the emerging fintech startups. This study identifies driving factors and uniqueness that illustrate the peculiar characteristics of incumbents, analyzes their internal readiness and capabilities, and examines their strat...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2019-07-01
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| Series: | Banks and Bank Systems |
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| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/12287/BBS_2019_03_Iman.pdf |
| _version_ | 1818331758606680064 |
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| author | Nofie Iman |
| author_facet | Nofie Iman |
| author_sort | Nofie Iman |
| collection | DOAJ |
| description | This research examines the way in which traditional banks are competing against the emerging fintech startups. This study identifies driving factors and uniqueness that illustrate the peculiar characteristics of incumbents, analyzes their internal readiness and capabilities, and examines their strategic response against fintech startups. In doing so, this paper examines Small Town Bank (STB)1, a regional bank in Indonesia, regarding its ability to innovate. Data are obtained from primary sources through internal and external questionnaires, as well as secondary data. The results of the study indicate that, in general, the bank already has a reasonably good innovation readiness, but there are several aspects that need to be noted, namely: optimization of current services, consolidation, and internal restructuration. Concurrently, while fintech has a very broad and massive technical and managerial impact, it does not mean that incumbent banks and traditional financial services cannot compete. |
| first_indexed | 2024-12-13T13:24:56Z |
| format | Article |
| id | doaj.art-47ba4faed24b473c885ea018a741365d |
| institution | Directory Open Access Journal |
| issn | 1816-7403 1991-7074 |
| language | English |
| last_indexed | 2024-12-13T13:24:56Z |
| publishDate | 2019-07-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Banks and Bank Systems |
| spelling | doaj.art-47ba4faed24b473c885ea018a741365d2022-12-21T23:44:19ZengLLC "CPC "Business Perspectives"Banks and Bank Systems1816-74031991-70742019-07-01143203310.21511/bbs.14(3).2019.0312287Traditional banks against fintech startups: a field investigation of a regional bank in IndonesiaNofie Iman0Ph.D., Faculty Member and Researcher, Department of Management, Faculty of Economics and Business, University Gadjah MadaThis research examines the way in which traditional banks are competing against the emerging fintech startups. This study identifies driving factors and uniqueness that illustrate the peculiar characteristics of incumbents, analyzes their internal readiness and capabilities, and examines their strategic response against fintech startups. In doing so, this paper examines Small Town Bank (STB)1, a regional bank in Indonesia, regarding its ability to innovate. Data are obtained from primary sources through internal and external questionnaires, as well as secondary data. The results of the study indicate that, in general, the bank already has a reasonably good innovation readiness, but there are several aspects that need to be noted, namely: optimization of current services, consolidation, and internal restructuration. Concurrently, while fintech has a very broad and massive technical and managerial impact, it does not mean that incumbent banks and traditional financial services cannot compete.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/12287/BBS_2019_03_Iman.pdfadoptionbankfintechinnovationstrategy |
| spellingShingle | Nofie Iman Traditional banks against fintech startups: a field investigation of a regional bank in Indonesia Banks and Bank Systems adoption bank fintech innovation strategy |
| title | Traditional banks against fintech startups: a field investigation of a regional bank in Indonesia |
| title_full | Traditional banks against fintech startups: a field investigation of a regional bank in Indonesia |
| title_fullStr | Traditional banks against fintech startups: a field investigation of a regional bank in Indonesia |
| title_full_unstemmed | Traditional banks against fintech startups: a field investigation of a regional bank in Indonesia |
| title_short | Traditional banks against fintech startups: a field investigation of a regional bank in Indonesia |
| title_sort | traditional banks against fintech startups a field investigation of a regional bank in indonesia |
| topic | adoption bank fintech innovation strategy |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/12287/BBS_2019_03_Iman.pdf |
| work_keys_str_mv | AT nofieiman traditionalbanksagainstfintechstartupsafieldinvestigationofaregionalbankinindonesia |