The piranhas: Endgame of banking in Indonesia

Neobank is a form of financial technology innovation that offers banking services without a branch office. This is a form of disruption in the banking industry. Therefore, this paper aims to look at the phenomenon regarding the shift in the banking industry due to the presence of neobanks and, at the same time, question whether this is the beginning of the extinction of conventional banking. Based on an analysis of the literature on fintech and digital banking from research, case studies, and news media in both English and Indonesian, this study discusses research related to neobank trends disrupting the conventional banking industry. Finally, this paper shows the phenomenon of the presence of neobanks and regulation from the government and market response. This research finds that fintech disrupts the financial services sector and changes customer behavior. This was further clarified when the concept of neobank emerged through Bank Jago and Bank Neo Commerce, which became the starting point for the conventional banking industry to transform into fully digital banks. Future research on neobanks will show how all the conventional banking industries have changed their business models to become digital banks.