Improving the Regional Economy and Bank bjb Fee Based Income by Forming a Digital Ecosystem in West Java Province Using Bank bjb Digital Products

Abstract

Bank bjb as a regional bank is required to support West Java Regional income with services and products that are profitable for banks, shareholders, and customers. Currently bank bjb has carried out digital transformation by producing digital products to increase customer satisfaction in transactions to generate fee-based income. Currently, net profit from the fee-based sector is still very small when compared to total income, fee-based income is only able to contribute less than 7.1% of total income. So that it is a challenge for bank bjb to be able to increase fee-based income from its digital products. The author uses STP analysis and marketing mix (7p) for internal analysis, where the results show that the strategy implemented is still not hitting its market share and Bank bjb is still targeting local government employees to offer its digital products. PESTEL, Porter 5 Forces, Competitor Analysis, and Consumer Analysis tools are used for external analysis. From the PESTEL analysis, it was found that if bank bjb wants to carry out digital transformation and form a digital ecosystem, it needs to ensure regulations from regulators. From Porter 5 Forces, it is found that threats in the financial industry today do not only come from banking but the emergence of financial technology. From Competitor Analysis, it is found that there are many choices regarding digital products for consumers. For Consumer Analysis, the author uses qualitative interviews with the 7p marketing mix conducted with bank bjb employees, customers, and non-customers. From consumer analysis, it is found that there is a low consumer perception of digital bank bjb products. After finding the root of the problem, bank bjb needs to determine the right strategy to increase fee-based income and West Java's local revenue. Therefore, bank bjb will determine a strategy in the form of Proposed Marketing Mix and Proposed Marketing Communication Strategy such as forming a digital ecosystem with third parties, enriching features in digital products, promotional programs, and others. Which in turn will increase transactions that generate fee-based income and regional income, especially for the West Java regional government.