Business Strategy for PT Finansindo Mikro Facing Competition in Microfinance Business

Abstract

Financial technology or fintech, has developed rapidly and made matters easier for storing, borrowing or investing online or with mobile devices. The competition can be seen through peer -to-peer (P2P) lender accounts, which have increased from year to year. Finansindo is engaged in micro-business as a P2P that targets women entrepreneurs who cannot access conventional banks or are not bankable. such as banks and microfinance institutions (MFIs). The External and internal environment will be analyzed to understand current business conditions. Analysis of the external environment contains PEST, industry forces and competitor analysis. Internal environment includes 7P marketing mix analysis and STP analysis. SWOT Analysis and Ansoff Matrix are used to obtain three strategic choices, namely: market development, product development, and market development, together with product development. Based on the analysis, the chosen strategy is market development. Product development is less attractive due to regulations limiting P2P. Market development and joint product development are not attractive due to regulation and limited resources. In conclusion, Finansindo recommends focusing on market development, which offers the same target but in other geographical areas. Adjusting to the previous segment and with relatively high ceiling considerations, Finansindo is recommended to operate in Aceh, North Sumatra, and Riau.