Competitive Advantage Strategies Of Indonesian Digital Banks In The Era Of Banking Revolution And Financial Transformation

Abstract

Digital transformation has driven the emergence of digital banks as innovative alternatives in Indonesia’s banking industry. However, digital banks in KBMI 1 and 2 categories face strategic challenges in building competitive advantage amid the dominance of major KBMI 4 banks and increasing customer expectations. This study aims to analyze the competitive position of ten Indonesian digital banks using the Competitive Profile Matrix (CPM) approach based on nine key financial ratios: CAR, CIR, NPL, NIM, CASA, LDR, ROE, ROA, and BOPO. The results show that BBHI ranks highest with a score of 3.28, followed by ARTO and AMAR, while BBKP ranks lowest. This study contributes to regulators, bank management, and investors in formulating data-driven strategies to enhance the competitiveness of digital banks.