The Effect of Fintech on Indonesian Banking Business Model

In order to achieve competitive fintech product innovations, banks seek a deeper understanding of their customers. In the short term, banks are imitating fintech product services by providing multifunctional mobile banking applications. Banking business actors respond to the challenge by adopting a customer-centric paradigm and perceiving fintech as an opportunity for innovation, investment, partnerships, and independent platform development. Therefore, this study aims to investigate the impact of fintech on the banking business model in Indonesia using a qualitative research approach. Thematic analysis is guided by the concepts of sensing and response. Researchers utilized NVivo 11 software to identify themes. In order to obtain the data, a literature review including corporate reports, articles in newspapers, corporate websites, and press releases was conducted. To improve validity, interviews and observations were also made. The results show that Indonesian banks view fintech as a competitive force that may provide distinctive client experiences and pose a threat to their established business models.