DIGITAL READINESS OF RURAL BANK IN ENHANCING MSMEs FINANCIAL INCLUSION: EVIDENCE FROM BPR SULAWESI MANDIRI

This study examines the digital readiness of BPR Sulawesi Mandiri in enhancing MSMEs financial inclusion through a qualitative single case study approach. Through triangulated data collection comprising in-depth interviews, direct observations, and document analysis. The research reveals three key findings. First, while the bank demonstrates strong strategic vision and financial commitment for digital transformation, operational implementation requires significant enhancement, particularly in technological infrastructure and process automation. Second, human resource readiness shows a balanced yet challenging landscape, with approximately half of the staff requiring additional digital competency development. Third, the bank’s phased approach to digital transformation, prioritizing basic infrastructure before advancing to complex digital services, aligns with successful practices in banking digital transformation. The study contributes to understanding digital transformation challenges in rural banking contexts and provides practical frameworks for implementation monitoring. These findings offer valuable insights for rural banks undertaking digital transformation initiatives, particularly in supporting MSMEs financial inclusion within Eastern Indonesia’s unique geographical and socio-economic context.