Strategic management of digital transformation in Rural Banks: Evidence from Depok City in the open banking era

https://doi.org/10.35912/ahrmr.v5i4.3474
Published: Dec 19, 2025

Abstract:

Purpose: This study aims to analyze the effects of technology infrastructure, security and regulatory compliance, and human resource readiness on the collaboration of Rural Banks (BPR) with fintech and the open banking ecosystem, with digital service adoption as a moderating variable.

Research Methodology: This research applied an associative quantitative method with a survey approach. Data were collected from 44 respondents representing 23 BPRs in Depok City. Respondents included executive officers, IT staff, and board members. The instrument used was a questionnaire distributed via Google Forms, and data analysis was performed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with SmartPLS 4 software.

Results: The findings show that human resource readiness has a significant positive effect on BPR–fintech collaboration. Technology infrastructure as well as security and regulatory compliance demonstrate no significant influence. Digital service adoption shows a positive but non-significant effect, although it moderates the negative influence of technology infrastructure. The research model obtained an R² value of 0.601, indicating a moderate explanatory power.

Conclusions: The study concludes that human resources are the most critical determinant of successful BPR digital transformation and collaboration with fintech. Technical and regulatory factors contribute positively but insignificantly, while digital service adoption primarily plays a moderating role.

Limitations: This study is limited to BPRs in Depok City with a relatively small sample size. Thus, the findings may not be generalizable to other regions or banking institutions.

Contribution: This study contributes to the literature on financial digitalization by highlighting the central role of human resource readiness in fintech collaboration. Practically, it offers insights for BPR management, regulators, and policymakers in designing strategies to strengthen HR competence and digital adoption in the context of open banking.

Keywords:
1. Digitalization
2. Digital Financial Innovation
3. Financial Services Transformation
4. Open Banking
5. Rural Banks (BPR)
Authors:
1 . Prihatina Jati
Universitas Mitra Bangsa, Jakarta, Indonesia
2 . Meirna Milisani
Universitas Mitra Bangsa, Jakarta, Indonesia
3 . Ahmad Firdaus
Universitas Mitra Bangsa, Jakarta, Indonesia
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How to Cite
Jati, P., Milisani, M., & Firdaus, A. (2025). Strategic management of digital transformation in Rural Banks: Evidence from Depok City in the open banking era. Annals of Human Resource Management Research, 5(4), 231–244. https://doi.org/10.35912/ahrmr.v5i4.3474
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Issue & Section
Vol. 5 No. 4 (2025): December
Articles
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References

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    Puschmann, T. (2017). Fintech. Business & Information Systems Engineering, 59(1), 69-76. doi:https://doi.org/10.1007/s12599-017-0464-6

    Siburian, F., Guguk, R. M. R., Surbakti, R., & Harahap, A. R. (2024). Peran Fintech dalam Mendorong Transformasi dan Inovasi di Industri Perbankan Modern. Jurnal Pendidikan Tambusai, 8(3), 51126-51129.

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    Tenenhaus, M., Vinzi, V. E., Chatelin, Y.-M., & Lauro, C. (2005). PLS Path Modeling. Computational statistics & data analysis, 48(1), 159-205. doi:https://doi.org/10.1016/j.csda.2004.03.005

    Thakor, A. V. (2020). Fintech and Banking: What Do We Know?. Journal of Financial Intermediation, 41, 1-46. doi:https://doi.org/10.1016/j.jfi.2019.100833

    Vives, X. (2017). The Impact of FinTech on Banking. European Economy, 3(2), 97-105.

    Zetzsche, D. A., Buckley, R. P., Barberis, J. N., & Arner, D. W. (2017). Regulating a Revolution: From Regulatory Sandboxes to Smart Regulation. SSRN Electronic Journal, 23, 1-67. doi:https://doi.org/10.2139/ssrn.3018534

  1. Abdurrahman, Gustomo, A., & Prasetio, E. A. (2024). Impact of Dynamic Capabilities on Digital Transformation and Innovation to Improve Banking Performance: A TOE Framework Study. Journal of Open Innovation: Technology, Market, and Complexity, 10(1), 1-19. doi:https://doi.org/10.1016/j.joitmc.2024.100215
  2. Alt, R., Beck, R., & Smits, M. T. (2018). FinTech and the Transformation of the Financial Industry. Electronic markets, 28(3), 235-243. doi:https://doi.org/10.1007/s12525-018-0310-9
  3. Arner, D. W., Barberis, J., & Buckley, R. P. (2015). The Evolution of Fintech: A New Post-Crisis Paradigm?. SSRN Electronic Journal, 47(4), 1271-1319. doi:https://doi.org/10.2139/ssrn.2676553
  4. Bustani. (2025). Revolutionizing Rural Credit Banks: A Narrative Review of Sustainable Financial Futures through ESG Integration and Digital Innovation. Jurnal Ekonomi, Manajemen, Bisnis dan Akuntansi, 2(1), 69-80. doi:https://doi.org/10.37676/jemba.v2i1.765
  5. Chin, W. W. (1998). The Partial Least Squares Approach to Structural Equation Modeling Modern Methods for Business Research (pp. 295-336): Psychology Press.
  6. Demirgüç-Kunt, A., Klapper, L., Singer, D., & Ansar, S. (2022). The Global Findex Database 2021: Financial Inclusion, Digital Payments, and Resilience in the Age of COVID-19. Washington DC: World Bank Publications.
  7. Devi, S., & Utamajaya, J. N. (2025). Pengaruh Tingkat Adopsi Teknologi Digital dan Integrasi Sistem Informasi terhadap Kinerja Organisasi: Tinjauan Literatur Sistematis di Bidang Sistem Informasi Jurnal Ilmiah Sains Teknologi dan Informasi, 3(2), 36-46. doi:https://doi.org/10.59024/jiti.v3i2.1166
  8. Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39-50. doi:https://doi.org/10.1177/002224378101800104
  9. Frost, J. (2020). The Economic Forces Driving FinTech Adoption Across Countries. SSRN Electronic Journal, 1-20. doi:https://doi.org/10.2139/ssrn.3515326
  10. Gai, K., Qiu, M., & Sun, X. (2018). A Survey on FinTech. Journal of Network and Computer Applications, 103, 262-273. doi:https://doi.org/10.1016/j.jnca.2017.10.011
  11. Gayo, R. P., & Ilham, M. (2024). Analisis Hukum Kewajiban Penyedia Layanan Terhadap Perlindungan Konsumen dalam Bisnis Platform Digital. Indonesia of Journal Business Law, 3(2), 61-68. doi:https://doi.org/10.47709/ijbl.v3i2.5010
  12. Gomber, P., Kauffman, R. J., Parker, C., & Weber, B. W. (2018). On the Fintech Revolution: Interpreting the Forces of Innovation, Disruption, and Transformation in Financial Services. Journal of Management Information Systems, 35(1), 220-265. doi:https://doi.org/10.1080/07421222.2018.1440766
  13. Gomber, P., Koch, J.-A., & Siering, M. (2017). Digital Finance and FinTech: Current Research and Future Research Directions. Journal of Business Economics, 87(5), 537-580. doi:https://doi.org/10.1007/s11573-017-0852-x
  14. Guo, F., Wang, J., Wang, F., Kong, T., Zhang, X., & Cheng, Z. (2020). Measuring China’s Digital Financial Inclusion: Index Compilation and Spatial Characteristics. China economic quarterly, 19(4), 1401-1418.
  15. Haddad, C., & Hornuf, L. (2019). The Emergence of the Global Fintech Market: Economic and Technological Determinants. Small Business Economics, 53(1), 81-105. doi:https://doi.org/10.1007/s11187-018-9991-x
  16. Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) Second Edition. New York: Sage Publications.
  17. Irna, & Mahmud, M. D. B. (2024). Digital Readiness of Rural Bank in Enhancing MSMEs Financial Inclusion: Evidence from BPR Sulawesi Mandiri. Proceeding of International Students Conference of Economics and Business Excellence, 1(1), 389-394. doi:https://doi.org/10.33830/iscebe.v1i1.3674
  18. Lee, I., & Shin, Y. J. (2018). Fintech: Ecosystem, Business Models, Investment Decisions, and Challenges. Business horizons, 61(1), 35-46. doi:https://doi.org/10.1016/j.bushor.2017.09.003
  19. Malihah, S., Sundhusiah, A., Ramadani, A., & Astuti, R. P. (2024). Analisis Bank Perkreditan Rakyat (BPR). Gudang Jurnal Multidisiplin Ilmu, 2(12), 312-319. doi:https://doi.org/10.59435/gjmi.v2i12.767
  20. Mudassir, A. F., & Natsir, M. K. K. (2025). Digital Innovation in the Transformation of BPR: Building a Sustainable Financial Ecosystem in the Era of Disruption. Jurnal Informasi dan Teknologi, 7(2), 146-151. doi:https://doi.org/10.60083/jidt.vi0.678
  21. Nathania, S. A., Abubakar, L., & Handayani, T. (2023). Implikasi Hukum Pemanfaatan Open Application Programming Interface Terhadap Layanan Perbankan Dikaitkan dengan Ketentuan Perbankan Digital. Jurnal Poros Hukum Padjadjaran, 4(2), 244-259. doi:https://doi.org/10.23920/jphp.v4i2.1209
  22. Ozili, P. K. (2018). Impact of Digital Finance on Financial Inclusion and Stability. Borsa istanbul review, 18(4), 329-340. doi:https://doi.org/10.1016/j.bir.2017.12.003
  23. Puschmann, T. (2017). Fintech. Business & Information Systems Engineering, 59(1), 69-76. doi:https://doi.org/10.1007/s12599-017-0464-6
  24. Siburian, F., Guguk, R. M. R., Surbakti, R., & Harahap, A. R. (2024). Peran Fintech dalam Mendorong Transformasi dan Inovasi di Industri Perbankan Modern. Jurnal Pendidikan Tambusai, 8(3), 51126-51129.
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  27. Thakor, A. V. (2020). Fintech and Banking: What Do We Know?. Journal of Financial Intermediation, 41, 1-46. doi:https://doi.org/10.1016/j.jfi.2019.100833
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  29. Zetzsche, D. A., Buckley, R. P., Barberis, J. N., & Arner, D. W. (2017). Regulating a Revolution: From Regulatory Sandboxes to Smart Regulation. SSRN Electronic Journal, 23, 1-67. doi:https://doi.org/10.2139/ssrn.3018534