THE INFLUENCE OF INNOVATION AND FINANCIAL TECHNOLOGY ON BUSINESS SUSTAINABILITY: BUSINESS STRATEGY AS A MODERATOR

Abstract

Competition to obtain loyal customers in Industry 4.0 is very tight; This is caused by various factors, including digitalization and financial technology (Fintech), many large banks acquiring small banks or carrying out mergers, creating increasingly tighter competition between large banks, the government and regulatory authorities often enacting new regulations that affect bank operations, increased competition between banks to get customers in the same market and consumers now prefer services that are fast, easy to access and transparent. In addition, consumers are more likely to move from traditional banks to digital platforms or banks that offer more modern and innovative services. This research aims to determine indicators that have a strong influence on the formation of business sustainability from independent variables, namely innovation and Fintech, with business strategy effectiveness as a moderating variable. The sample in this research was 256 customers from CIMB Niaga Bank who had used Fintech for at least two years, where the questionnaire data obtained was processed using PLS (Partial Least Square). This research shows that innovation and Fintech have a positive and significant influence on the effectiveness of business strategy. The indicator that has the greatest contribution to innovation is customer satisfaction with innovative products. An indicator that really influences financial technology is the growth rate of active users. Meanwhile, business strategy effectiveness as an intervening variable can be well moderated to act as a variable that strengthens the influence of innovation and Fintech variables on sustainability because it can increase market share growth and achieve operational efficiency.