Bank Strategy when Facing Financial Technology Competition

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review


The evolution in banking financial technology shifts banking services from traditional transaction services to modern banking services. This breakthrough changes the way in which banking transactions are performed. Banks should thereby rethink their business strategy to compete in the era of technological progress. Business competition in financial technology (FinTech) comprises of start-ups with technological advantages and endless innovative technology-based financial products. On the basis of the analysis of PT. Bank XYZ’s strategy case study, considering the business competition for FinTech mastery, a bank conducts business strategy formulation in the four following steps. First, it adapts to FinTech technology advantage. Second, it invests in FinTech start-ups and technological innovations. Third, it completely collaborates with FinTech start-ups. Fourth, it focuses on improving the quality of service in several operational aspects. Further, competitive advantage is obtained through the improvement of service quality by orienting toward the needs and expectations of consumers. When the needs of consumers change with the development of technology, the bank must immediately rethink and redesign its business strategies to adapt with the rapid changes. Hence, the design of a sustainable business strategy through cutting-edge FinTech is a basic need and challenge of the banking industry in this era of the digital economy.
Original languageEnglish
Title of host publicationProceedings of The 3rd International Conference on Vocational Higher Education (ICVHE 2018)
PublisherAtlantis Press
Number of pages6
ISBN (Electronic)978-94-6252-947-2
Publication statusPublished - 3 Apr 2020
Event3rd International Conference on Vocational Higher Education (ICVHE 2018): “Understanding Digital World. From Theory to Practices.” - Batam, Indonesia
Duration: 2 Aug 20184 Aug 2018

Publication series

NameAdvances in Social Science, Education and Humanities Research
PublisherAtlantis Press
ISSN (Electronic)2352-5398


Conference3rd International Conference on Vocational Higher Education (ICVHE 2018)


  • banking services
  • business competition
  • strategy formulation


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