The Impact of Digital Advancement in Banking Industry Marketing: The Case of Indonesia

Abstract

Abstract. This article investigates the impact of digital and technological advancement in the Indonesian banking industry based on the perspective of marketing. The application of technology in the marketing field enables the banks to gain a competitive advantage in introducing their product to the potential and current customers. On the other hand, these benefits are also exposing the banks' and its customer to the marketing fraud risk. To find the impact of digital and information technology (IT) utilization with the addition of marketing fraud risk, the questionnaire in this research is answered by the directors of the banks' that are classified to the Book 4 category in Indonesia. The linear regression analysis is implemented to find the relationship between the utilization of IT and marketing fraud risk to the impact of technological and digital advancement. Based on the analysis conducted in this research, it is found that the advancement of digital and technological advancement has a positive relationship with marketing fraud risk and IT utilization by the banks, and it is also found that marketing fraud risk may also increase if the banks increase their utilization on IT in regards to introducing their product to the current and potential customer.

Keywords: Digital marketing; Banking product; Technological advancement, Marketing fraud risk