Digital Transformation in Bank Perkreditan Rakyat in Encouraging Efficiency and Answering the Challenges of the New Era of Industry 4.0

Abstract

. Bank Perkreditan Rakyat (BPR) is a bank that carries out business activities conventionally and Financial Technology (Fintech) is a term with a sense related to the field of technology as well as the field economics (OJK, 2021). In 2020, the world was shocked by a deadly virus outbreak. This virus is a new type of virus called Coronavirus (SARS-CoV-2). The spread of the Covid-19 pandemic and Government policies also affect the banking industries, especially Bank Perkreditan Rakyat. Bank Perkreditan Rakyat has limitation in digital innovations, which is currently required to minimize direct contact. There are several factors influencing BPRs in digital innovations. This study aims to formulate the strategy through SWOT analysis on the conditions of Bank Perkreditan Rakyat in Indonesia. The research method used in this study was qualitative descriptive and SWOT analysis. The results of this study are 10 strategies with the main priorities of improving BPR services with digital including digitization of information access, digitization of services to customers, and digitization of BPR business processes and also, we make comparison with financial technology. The strategies obtained from this study are expected to be a suggestion for BPR and other related stakeholders.