Innovation and Support: Non-Bank Financial Institutions in Indonesia's Banking Sector Reform in the Global Era

Abstract

This study discusses banking strategies in facing the new era in Indonesia, taking into account rapid market and technological changes. This transformation is triggered by the development of financial technology (fintech) and the digital revolution, which aims to expand financial inclusion by providing easier and more flexible access for the public. To remain competitive, banks need to continue to innovate and improve their services to meet increasingly high customer expectations. This study uses a qualitative approach with a literature review method to gain an in-depth understanding of banking strategies in facing market and technological changes in Indonesia. Secondary data were collected from relevant scientific articles, journals, and books, then analyzed descriptively and interpretively. This analysis aims to identify general patterns, trends, and important findings related to product and service innovation strategies, as well as risk and compliance management in the banking industry in Indonesia. The results of the study indicate that increasing human resource capacity, investing in digital infrastructure, financial education and literacy, effective risk management, collaboration with regulators, adopting the latest technology, and developing innovative products and services are crucial steps for banks in Indonesia to face dynamic market challenges. Implementing these suggestions will help banks in Indonesia to be better prepared for change and provide the best service to customers.

Keywords: Market Change, Financial Technology, Digital Transformation .