The Indonesian Journal of

Business Administration
Online Journal – Master of Business Administration
School of Business and Management – ITB
E-ISSN: 2252-9284

PROPOSED BUSINESS STRATEGY OF BRIMO (BANK RAKYAT INDONESIA MOBILE

BANKING) FOR BRI BRANCH OFFICE CIAMIS

Eko Rudi Irawan

School of Business and Management
Institut Teknologi Bandung
Email: ekorudi_irawan@sbm-itb.ac.id

Abstract. BRI continues to adapt and transform customer service by adjusting to developments in
digital technology and established a banking service platform called BRImo. Although BRImo has
quite comprehensive features, in fact the growth of BRImo users in several rural areas, such as Ciamis
district, is still low. This may happen because micro customers, most of whom live in rural areas, have
inadequate internet network facilities, and public education on digital technology is still lagging, so the
accessible transaction features offered by BRImo are still tricky to access. Therefore, the purpose of
this study is to find the cause of the low growth of BRImo users at the Ciamis branch office and
formulate business strategies that should be implemented at the Ciamis branch office to increase
BRImo users. The method used in this study is qualitative, where the data obtained is derived from the
interview results with BRI customers. From these results, researchers then obtained the results of
internal and external analysis. External analysis consists of General Environment Analysis
(Political/Legal, Economic, Demographic, Technological, Global, Physical, Socio-Cultural), Industry
Environment Analysis (Porter`s Five Forces), and Competitor Environment Analysis. Internal analysis
through Resources Based View analysis (Financial, Organizational, Facility, Technological, Human,
Innovation, Reputational Resources), Value Chain Analysis. From these analyses, the results are
summarized in a SWOT Analysis and several components are linked to each other using the TOWS
Matrix to derive a suitable strategy. Based on the research conducted in Ciamis district, several causes
of the low growth of BRImo users in Ciamis branch office are customer pain in using mobile banking,
uncovered by internet access in several rural areas, high rivalry among existing competitors, high
threat of substitute products, high threat of new entrants, and lack of BRImo promotion programs.
Then, the business strategy that can be implemented at BRI branch office Ciamis to increase BRImo
users are “Increase BRImo users in potential rural areas”, “Enhance Digital Ecosystem of micro
segment”, “Maintain BRImo`s customer loyalty and retention”, and “Increase BRImo`s brand
awareness in limited internet access area”.

Keywords: Business strategy, Digital banking, SWOT Analysis, Five Forces Porter.

INTRODUCTION
BRI focuses on micro, small, and medium segments and become a pioneer of microfinance to support
improving the people`s economy in Indonesia. BRI continues to adapt and transform customer service
by adjusting to developments in digital technology. BRI Mobile Banking (BRImo) is a digital banking
super app which has the latest UI/UX internet-based work system that provides easy transactions and
has many features, such as the latest User Interface and User Experience, face recognition login,
fingerprint login, e-money top-up, QR payments, and other features, with the option of Source of
Funds for each transaction that can use a checking/savings account. Although digital technology is
increasing every year, the fact is BRImo users are still low in Ciamis, primarily for the micro segment.
It is proven that around 11% of BRI customers use BRImo application. Meanwhile, there is still has
9% gap to the target (20%). BRI customer data in branch office Ciamis can be seen on Table 1.

1
 Table 1 BRI Customer Data Ciamis Branch Office
(BRI Performance, 2022)

*) Percentage between BRImo user to total BRI customers.

BRImo as an educational forum is one of BRI`s missions, so BRI's micro customers can literate in
technology and aware of digital economic patterns because they are believed to be able to contribute to
Indonesia's economic growth rate through a capable digital ecosystem. From this problem, the
research will focus on reviewing business strategy solutions to increase the use of BRImo in the BRI
Micro customer segment, especially in Branch Ciamis. The purpose of this paper are : (1) To find
causes the low growth of BRImo users in the Ciamis branch office. (2) Formulate the business strategy
which should be implemented at branch office Ciamis to increase BRImo users. To make problem
identification more focused, there are some limitations in this research: (1) 1. Research is focusing on
BRI's micro customers at Ciamis branch office. Outside the area of BRI, Ciamis Branch is not
discussed further in this research. (2) The output of this research is marketing and sales strategy which
possible to be implemented at branch office Ciamis.

LITERATURE REVIEW
The introduction of the analysis must
be distinct from customer and product
analysis. Customer and product
analysis will be identified using the
Value Proposition Canvas tools.
Value Proposition Canvas is a
problem faced by customers or
satisfying customer needs
(Osterwalder & Pigneur, 2010). The
Value Proposition Canvas consists of
a customer profile and a value
(product) map. The Value Proposition
Canvas aims to determine whether the
product or service being developed or
made can answer the problems in the customer profile section. After conducting customer and product
analysis, the results of the analysis can be used as a reference in improving products, services and
systems. Furthermore, external and internal analysis of the company is conducted to gain point of view
from external and internal environment related to BRImo application. External analysis is conducted
to determine opportunities and threats that occur, both in the macro environment, industry and
competition. The external analysis consists of the general environment, industry environment and
competitor environment analysis of BRImo products. Then, internal analysis is conducted to
determine strength and weakness of BRImo. Internal analysis consists of Resource Based View and
Value Chain Analysis, as a basis for superior capabilities and competencies in achieving competitive
advantage (Hitt, Ireland, & Hoskisson, 2013). The general environment consists of External and
Internal environment analysis. External environment analysis can be conducted using several elements
(Wandebori, 2019), including Politic/Legal, Economy, Demography, Technology, Global, and Physic.
Industry environment consists of companies that are related with BRI. Analysis of competitors
consists of four components, including Objective, Assumption, Strategy, and Capability (Wandebori,
2019). The resource-based view includes visible and invisible resources. Visible resources are
resources that can be seen, heard, and touched which consist of financial, organizational,
technological, and physical (Wandebori, 2019). Meanwhile, value chain analysis can be used to
formulate competitive advantage, and identify and/or develop the linkages and interrelationships
between activities that create value (Ensign, 2001). Value chain activities consists of primary activity,
and support activity which part of the activities that analyzed in order to see the overall capability of a

2
firm to increase value or margin to its shareholder from its activities. Value is defined as product
attributes and performance characteristics, and customers that willing to pay for the product
(Wandebori, 2019). After conducting external analysis, it is possible to determine SWOT (Strengths,
Weaknesses, Opportunities, and Threats) analysis. SWOT Analysis is a tool used for strategic
planning and strategic management in organizations. An implementation plan specifies necessary
activities and how they are related to each other, people or units which responsible for those activities,
timing of the activities, resource requirements (i.e., human, technology, monetary, other resources, and
support), flow of information, goods, and money happening alongside the activities, flowchart diagram
and the standards of conducting project management are highly recommended to illustrate the
implementation process.

METHODOLOGY
This research used qualitative research due to the need for answers from respondents that are
comprehensive and tend to be open. Furthermore, it will be used to better understand the needs of
micro-segment customers towards BRImo. Researchers conducted interviews to several participants
who have BRI account in Ciamis district. The data collection technique used in this research is
interview as a primary data. Secondary data is obtained through documentation and literature studies
in the form of books, journals, print media and online media related to the focus of the problem
formulation studied. In addition, this research is supported through secondary data, which focuses on
collecting bibliographical data from various sources of books and various scientific journals related to
business strategy analysis studies, also involving online media sources and BRI's official website to
strengthen external and internal analysis of BRI's operational management and BRImo business
strategy.

FINDINGS AND ARGUMENT

1. General Environment Analysis
The analysis of the general environment are as follows: in political and economic aspects, BRImo has
strengths in terms of regulations and several existing policies. From the technological and global
aspects, even though the technology trend is getting faster, it makes BRI more competitive in
technology innovation to develop BRImo features. Demographic, physical, and socio-cultural aspects
are actually very advantageous for BRImo. This is due to the fact that the average population is young
people who are very responsive to technological developments, supported by the equitable coverage of
BTS in several areas that continue to grow every year. Although there are some rural areas that are
still not covered with BTS and have limited internet access.

2. Industry Analysis
Starting from the Rivalry Among Existing Competitors aspect is strong threats, where many mobile
banking from other banks have the same features and are more aggressive. The Bargaining Power of
Supplier aspect are high threat, where suppliers have an important role in creating UI/UX platforms
and data server suppliers for the security and responsiveness of the platform. Besides, buyers possess
moderate bargaining power. Although customer desires are various, and BRImo has to adapt with the
customer needs, but mobile banking is part of the bank`s product. Customers will have difficulties
switching to other banks because there is a switching cost, where there is a minimum balance that
should be owned by customers. Substitute products aspect also moderate, due to many the technology
advances and competition increases in banking industry makes many e-wallet companies launch more
attractive products that collaborate with merchants and provide exciting promotions. But these
products still depend on the existence of mobile banking to connect customers with fintech companies.
It is coming from various fintech industries, innovations in the financial services industry,
microfinancing and lending service financing. Although neo banks and lending service financing have
begun to emerge and represent a threat to BRImo, but customers in Ciamis are still highly dependent
on traditional banks for cash withdrawal and neo-banks still have less brand awareness among Ciamis
people.

3. Competitor Analysis

3
Based on the analysis of the three competitors, it is predictable that BCA mobile will continue to
innovate products that are in line with customer behavior and development in the business
environment. For Livin` by Mandiri, it will enter into the customer's circle which is related to the
customer's lifestyle. From the analysis of the capabilities possessed by BRImo compared to other
competitors, it will provide an overview of the product and service differentiation that will be
developed by BRImo and the targeted segment. In this case, the targeted segment is micro-segment
customers who live in rural areas.

4. Resource Based View

Based on the VRIO analysis, BRI has five sustainable competitive advantages, such as: (1) Owned
several offices spread throughout rural areas, (2) Branch offices and unit location are easily accessible
by customers in rural areas, (3) Huge customer base, especially micro-segment customers, (4)
Successful acquiring IT facilities, certified with ISO and PCI, (5) BRImo and BRILink Mobile were
the first digital apps to receive the ISO 20000-1:2018 recommendation in 2021.

5. Value Chain Analysis

The following is the Value Chain Analysis for BRImo:
- Marketing: Researcher uses the 4P to discover the marketing activities of BRI branch office
Ciamis for BRImo which can be seen in Table 2.
Table 2. Current BRImo Marketing Mix Strategy

- Sales: The explanation about sales activities of BRI branch office Ciamis for BRImo, can be seen
in Table 3.
Table 3. Current BRImo Sales Strategy in Ciamis

- Products: BRImo is a BRI digital financial application based on internet data that makes it easy
for customers to transact with a good User Interface and User Experience (UI/UX). In the future,
BRImo was expected to be a one stop solution for all BRI customers.
- Transactions: Another primary activity down the value chain of the banking industry is
transaction. Millions of transactions are carried out every day throughout the world online and
offline. From mobile banking to online payments, several millions exchange hands in the form of
transactions.
- Risk Management: In accordance with the complexity of its business, BRI managed 8 (eight)
types of risk, namely credit risk, liquidity risk, market risk, operational risk, legal risk, reputation
risk, strategic risk and compliance risk. The wide scale of operations and ever-increasing business
volume have forced BRI to implement an integrated risk management pattern to identify, measure,
monitor and control all risk exposures.
- Technological Development: These days, banks use technology for all aspects of their
operations, including sales, marketing, customer service, and other tasks. The platforms of banks
are crucial for promoting brand recognition, sales, marketing, and customer acquisition and
retention. The bank platforms play an important role in driving brand awareness, sales, marketing
as well as customer acquisition and retention. Digital technology has driven the level of consumer
convenience higher in the entire banking industry including the Asian markets.

4
 - Human Resources:
The reality conditions in Ciamis
require special attention in terms of
“People” related to BRImo. The
results of discussions with BRI
Leader of the Ciamis Branch
Office said that there was no
special training in promoting
BRImo. This is proven that there is
no special sales force formed to
promote BRImo.
- Firm
Infrastructures: Infrastructure
also plays a key role in the banking
industry. From physical
infrastructure to technology and particularly IT, infrastructure plays an important role in the
growth and functioning of the banks. IT infrastructure with high availability was needed to
maintain business continuity and IT operations at BRI. 3 DC owned by BRI became a form of
supporting high availability banking service.

6. SWOT Analysis

Figure 3. TOWS Matrix

CONCLUSIONS
The research indicates that there are several causes of the low growth of BRImo users in Ciamis
Branch are (1) Customer pain in using mobile banking such as: lots of bugs and errors, slow response,
weak signals, fear of fraud, easy blocking, and username and password that are sometimes forgotten
by users, (2) Limited internet access in several rural areas, (3) High rivalry among existing
competitors and bargaining power of suppliers, (4) Lack of BRImo promotion programs. For the sales
strategy formulations are: (1) Expanding BRImo market segment to potential rural areas, (2) Conduct
campaign promotion in potential rural areas, (3) Digitization onboarding to facilitate in registering
BRImo account, (4) Intensive education for new BRImo user, (5) Involve local community to gain
customer trust. In addition, the human resource sales strategy is Recruit reliable sales
promoters/customer services and train them to support market expansion.

REFERENCES
BRI. (2022). BRI Annual Report 2021. Jakarta: Bank Rakyat Indonesia.
Hitt, M., Ireland, D., & Hoskisson, R. E. (2013). Strategic Management: Competitiveness and
Globalization. Texas: Cengage Southwestern Publishing Co.
Osterwalder, A., & Pigneur, Y. (2010). Business Model Canvas. Business Model Genration.

5
Wandebori, Harimukti. (2019). Manajemen Strategi Dalam Perspektif Industri. Bandung: ITB Press.