Analysis of Digital Transformation in The Payment Financial Services Industry in Indonesia (Case Study at Bank Mandiri)

Abstract

This paper covers digital transformation in general across all industries and in the payment financial services industry in particular. Studies show that digital transformation began a decade ago, but many companies fail to identify what is causing them to lose or go out of business. The key drivers of digital transformation in the payment financial services industry are the newly empowered millennial generation, significant adoption of mobile users across all generations, the rise of e-commerce, new players in the non-financial services industry, fintech companies, and the huge unbanked population for developing countries like Indonesia. This paper will discuss how new digital players are transforming banks and financial institutions to reimagine their role as trusted brokers in the new digital payment economy. This paper will include the author’s analysis and research based on publicly available materials and in-depth discussions with key executives interviewed from the digital payment industry, namely very large bank. The paper will analyze how this industry is transforming its business to compete and stay ahead in the new digital payment economy.

Keywords: bank, digital transformation, financial services industry, fintech, payment