Innovation In the Digitalization Of Bank Services And Some Implications Of Case Study In Bank NTT Indonesia

  • Frans Gana Department of Business Administration, Faculty of Social and Political Science, University of Nusa Cendana, Kupang
  • Ricky Foeh Department of Business Administration, Faculty of Social and Political Science, University of Nusa Cendana, Kupang
Keywords: Digitalization innovation, Bank services, Fraudulent behavior, MSME development, Credit disbursement

Abstract

This study aims to investigate NTT's innovations in digitizing bank services and some of its effects. In-depth interviews, documentation, and focused conversations are the primary methods for this study to acquire qualitative data. The principal sources of information for the study were the board of commissioners, directors, division leaders, and NTT bank staff. The research's conclusions include the following: First, the community now has simple access to funding sources thanks to innovation in digitizing NTT bank services. Second, it has stopped local tax leaks. Third, it has encouraged MSMEs and village farmers/breeders. Fourth, it has provided community business opportunities, specifically as NTT bank digital agents. Fifth, it has reduced dishonest lending practices (shirking). Finally, the sociolinguistic technique of service digitization innovation is contextual because it blends regional and global vocabulary, such as B'pung Mobile, B'pung Petani, and Lopo Dia Bisa. Thirdly, the Financial Services Authority (OJK: Otoritas Jasa Keuangan) regulations that govern banking transfer into digital form are referred to as service digitization innovation and are found in RP 21 and PBI Number 23/26/2021. Fourth, traditional bank services complement the innovation in service digitization, showing that bank services continue to use a mixed approach. The NTT bank's service digitization innovation has had several benefits, including updating standard operating procedures (SOP), developing human capital, and changing corporate culture. Future research is strongly encouraged to focus on the significance of studying the elements that affect bank service innovation for digital services, such as transformational leadership philosophies, first-rate corporate governance, and organizational dedication.

Published
2023-12-21