Ivey Publishing

Product Details

BTPN: A Traditional Bank that became a Digital Indonesian Jenius
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10 pages (8 pages of text)
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Case (Field)
In 2020, the Indonesian bank PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) had to make a decision regarding a digital transformation strategy for its future. BTPN had started as a small bank that focused on pensioners, but became known for its innovation after a private equity partner bought a stake in 2008. Initially innovating successfully in microfinance, BTPN decided to go digital by creating an in-house start-up in 2015 called Jenius, thereby leapfrogging to become one of the forerunners in Indonesian digital consumer banking. The COVID-19 pandemic had accelerated digital financial services, and BTPN had to decide how to scale Jenius to transform the company. Was the in-house start-up model the best choice after all, or would the large incumbent banks digitalize faster?
Learning Objective:
This case is best suited for undergraduate- and graduate-level courses on strategy or management, international business and emerging markets and business in Asia, digital technologies, or innovation. This case explores the challenges that organizations face when transitioning from a brick-and-mortar business to a digital business. In particular, the case addresses the benefits and costs of undergoing such a transition through an in-house financial technology start-up within a bank. The benefits and costs of the in-house start-up option vary depending on the scale and maturity of the venture. As students will gradually realize, the option of an in-house start-up also comes with significant drawbacks in later stages of development. After working through the case and assignment questions, students will be able to
  • make strategic decisions in the context of transformational innovations in emerging markets;
  • understand digital innovation choices and implications—in particular, the creation and scaling of in-house start-ups;
  • understand the challenges of scaling fintech innovations in a rapidly changing market and regulatory landscape; and
  • understand strategy in emerging markets where volatility is high and there are opportunities for leapfrogging.
General Management/Strategy
Finance and Insurance
Indonesia, Large, 2020
Intended Audience:
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download
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