Branchless Banking as a Disruptive Innovation in Indonesia

Branchless Banking is part of the financial inclusion program, which provides financial services performed outside bank branches using information and communication technology, also non-bank retail agents. Branchless Banking aims to provide financial products that are simple, easy to understand and in accordance with needs, for people who have not been reached by financial services. It is expected to reinforce community economic activities so as to encourage economic growth and equitable development among regions in Indonesia, especially between villages and cities. The purpose of this research is to find out whether Branchless banking services in Indonesia can be said as Disruptive Innovation. Based on the concept and also the success of other countries, Branchless banking service is a Disruptive Innovation, because it is targeting a new market, namely the lower classes that have not been reached by banks (unbanked) with enormous potential in Indonesia; The services are offered in the form of banking products suitted to the needs of the market target which are low cost, easy to use for its customers and use information technology solutions, in this case cellular phones, as a tool for conducting transactions.