Key findings:

Key findings include: limited Pay Later awareness and usage among selected customers due to insufficient marketing efforts and a narrow payment range; stiff competition from ecosystem players and fintech services; strengths include technological advancement and regulatory backing, while weaknesses include low awareness; and the need for enhanced brand awareness and effective marketing strategies to improve adoption rates.

What is known and what is new?

The known aspect is the general impact of technological advancements on financial transactions and consumer behavior. The new contribution is the specific study on the Pay Later system by Jen Bank, examining factors influencing brand awareness through mixed methods, including Porter's 5 Forces, VRIO, and PLS-SEM, to identify strategies for improvement and competitive marketing.

What is the implication, and what should change now?

The implication is that Jen Bank Pay Later needs to enhance brand awareness and adopt effective marketing strategies to improve adoption rates and market position. Changes needed include increasing marketing efforts, expanding payment options, and differentiating the service from competitors to capitalize on Indonesia's expanding digital payment market.

The rapid advancement of technology has substantially transformed the mechanisms of business transactions and consumer behaviour, especially in the financial services field. In Indonesia, this shift towards digitalization is typified by the increasing popularity of e-money. Defined by Bank Indonesia, e-money functions as a currency that can be accessed online and electronically stored, either on servers or embedded within microchips in cards, such as ATMs or credit cards. This transition from traditional cash-based transactions aligns with the Indonesian government's National Movement of Non-Cash, an initiative aimed at promoting a Less Cash Society (LCS). The movement advocates for the use of non-cash instruments in economic activities, reflecting the global trend towards cashless societies and digital economies.

In Indonesia's digital environment, payment methods such as Pay Later systems have become increasingly popular. Similar to credit cards, the Pay Later system enables consumers to make purchases and defer payments to a later date, providing a flexible financial solution that aligns with consumers' immediate needs and spending abilities. This emerging trend towards digital payments, including novel solutions such as Pay Later, is transforming the Indonesian economy, impacting consumer behaviour, business practices, and overall market dynamics.

Established in 2015, Digital Banking represents Ben Bank's latest business division, with its flagship product, Jen Bank, introduced in 2016. Despite being relatively new in the Indonesian banking industry, Jen Bank has experienced significant growth, boasting a substantial increase in registered users from 4.2 million in September 2022 to 5 million in September 2023. This growth underscores Jen Bank's market presence and potential for further expansion. Jen Bank aims to provide a fully digitalized banking experience, offering a wide range of services, including personal loans, savings accounts, current accounts, and financial advice. Its user-friendly interface and comprehensive features cater to digitally savvy customers, particularly millennials aged 26-45, residing in urban areas such as Jakarta, Bandung, Surabaya, Bali, and Makassar.

Jen Bank targets digitally savvy customers seeking holistic financial solutions. Primarily focusing on millennials, Jen Bank's colourful and user-friendly interface appeals to individuals looking for hassle-free banking experiences. It specifically targets customers in major cities or urban areas in Indonesia. Jen Bank's revenue streams include interest income from funding balance, interest income from lending, and fee-based income. Effective management of funding balance is crucial, balancing customers' interest rate sensitivity with regulatory compliance. Additionally, revenue is generated through lending products and various fee-based activities conducted via the Jen Bank app.

Jen Bank's Pay Later feature addresses consumers' need for financial flexibility by offering zero-interest post-payment options integrated into a digital banking app. With a maximum late fee of Rp 30,000, Jen Bank's Pay Later represents the largest financial flexibility offering in the industry, allowing users to manage routine spending obligations conveniently while ensuring prudent usage of credit facilities.

The rise of e-commerce has catalysed innovations in payment systems, including the emergence of pay-later solutions propelled by FinTech companies. This alternative payment method grants consumers the flexibility to defer payment for purchases, akin to credit cards but with added adaptability. Pay-later systems are reshaping consumer behaviour, particularly in online shopping, by granting immediate ownership of products without the need for upfront payment, potentially fostering more impulsive purchases.

With the pay-later market projected to soar to $680 billion in transaction volumes worldwide by 2025, banks recognize a significant opportunity to tap into new revenue streams and expand their business horizons. Leveraging their reputation for regulatory oversight and financial security, banks are increasingly integrating pay-later functionalities into their digital banking platforms to entice more customers. Jen Bank, in alignment with this trend, seeks to harness pay-later technology within its digital banking ecosystem to bolster its lending business. Nonetheless, despite selecting 200,000 customers for the Pay Later feature, a mere 23% have activated and utilized it. This low adoption rate may be attributed to limited awareness among customers and constraints on payment options, such as QRIS payments and a maximum limit of Rp500,000. To overcome these hurdles and bolster both usage and brand recognition, Jen Bank must deploy a targeted marketing strategy aimed at educating customers about the advantages of Pay Later while broadening the spectrum of payment options available. By effectively addressing these challenges, Jen Bank can leverage pay-later solutions to attract fresh clientele and propel growth in its lending business.

The researcher has formulated three key research questions to guide the study on Jen Bank Pay Later. Firstly, the inquiry seeks to understand the current level of awareness surrounding Jen Bank Pay Later in the market and its competitive landscape. Secondly, it aims to pinpoint areas for improvement within the existing Jen Bank Pay Later features to enhance its competitiveness in the pay-later market. Finally, the research endeavours to devise a robust marketing strategy for the future launch of Jen Bank Pay Later in the market. These research questions will serve as clear guidelines to accomplish the research objectives effectively.

However, it's essential to acknowledge the limitations of this study. Primarily, the scope of the market analysis is confined to a specific geographic area or target market, potentially constraining the broader applicability of the findings. Additionally, the accuracy and depth of the research are contingent upon the availability of relevant data, which may affect the comprehensiveness of the analysis. Time constraints pose limitations on the depth of investigation, potentially overlooking long-term market trends. Moreover, variations in market conditions across different geographic locations and changes in regulatory policies could impact the research outcomes. Furthermore, the research assumes certain customer behaviour patterns based on existing data, potentially neglecting individual preferences and behaviours that may vary over time.

BNPL systems offer consumers the flexibility to defer payments for purchases over time, fostering better financial management and easing access to credit, particularly for individuals without a strong credit history [1]. The rise of e-commerce has fuelled innovations in payment systems, with BNPL emerging as a prominent option globally, including in Indonesia [2]. This system mirrors credit cards but is embedded within digital platforms, offering convenience and enabling impulsive purchases [3].

Brand awareness, a critical aspect of branding, refers to consumers' knowledge and recognition of a brand's attributes and products. Effective branding strategies aim to build brand awareness through advertising, public relations, and social media marketing [4]. Advertising, a fundamental component of marketing communication, plays a pivotal role in creating brand awareness and shaping consumer perceptions. Social media has revolutionized marketing communication, facilitating brand engagement and interaction through user-generated content and brand communities [5]. Additionally, word-of-mouth communication, both organic and amplified, influences consumer purchasing decisions and contributes to brand awareness [6]. Publicity, a subset of public relations, leverages non-personal communications to enhance brand reputation and foster relationships with key stakeholders [7].

Figure 1: Conceptual Framework Diagram

The literature review culminates in several hypotheses:

H1: Advertising positively influences brand awareness of Pay Later

H2: Social media positively influences brand awareness of Pay Later

H3: Word of mouth positively influences brand awareness of Pay Later

H4: Publicity positively influences brand awareness of Pay Later

These hypotheses underscore the pivotal role of various marketing communication channels in shaping brand awareness, particularly in the context of emerging payment systems like Pay Later.

Conceptual Framework

Based on the literature review above, the conceptual framework can be defined in Figure 1. The independent variables are advertising, social media, word of mouth, and publicity. While the dependent variable is brand awareness

This research employs a mixed-methods approach to investigate factors influencing Jen Bank Pay Later brand awareness. The research design consists of both qualitative and quantitative methods. Initially, external and internal analyses are conducted using qualitative techniques such as Porter's 5 Forces, Competitor Analysis, VRIO Framework, Value Chain analysis, etc. This is followed by quantitative data collection through questionnaires to analyse customer perceptions.

Data collection methods include observation and in-depth interviews to identify business issues, company resources, industry situations, and competitors. The questionnaire comprises multiple-choice and Likert scale questions to gather data on brand awareness, advertising effectiveness, social media usage, word of mouth, etc.

Data analysis is conducted using Partial Least Squares Structural Equation Modelling (PLS-SEM). Convergent validity, discriminant validity, composite reliability, and structural model measurement are evaluated to ensure the reliability and validity of the data. The study's hypotheses are tested using bootstrapping methods, and the results indicate significant relationships between advertising, social media, word of mouth, publicity, and brand awareness. In summary, this study provides insights into the factors influencing Jen Bank Pay Later brand awareness using a comprehensive research methodology combining qualitative and quantitative approaches.

Analysis

A situation analysis is a comprehensive study of a company's market position, considering both internal  

and external factors. It examines the company's current and potential customers, as well as their response to the company's products and services. Additionally, it assesses the company's strengths and weaknesses, and how the current business climate impacts it. Additionally, it assesses the company's strengths and weaknesses, and how the current business climate impacts it.

External Condition Analysis

According to Kraus, Harms, and Schwarz (2006) [8], the purpose of conducting an external analysis is to aid the organization in developing a more efficient and effective strategy. The primary objective of external condition analysis is to identify opportunities and threats in an industry or segment that will impact the company's profitability and growth. This research will employ external analysis techniques, including industry analysis, competition analysis, and Porter's Five Forces.

Pestel Analysis

Political Factors: The Indonesian government heavily regulates the financial services industry, including digital payment solutions like Pay Later services, through the Financial Services Authority (OJK). This regulatory environment ensures adherence to financial principles and prioritizes consumer interests. The government also supports the digital economy, promoting digital payment systems to enhance economic inclusion and efficiency, providing both growth opportunities and regulatory challenges for Pay Later services.

Economic Factors: Indonesia's economic recovery post-COVID-19 has led to increased consumer spending, benefiting Pay Later services as consumers use credit to manage cash flow and fulfil pent-up demand. The widespread use of the internet and growth of e-commerce further drive the adoption of Pay Later options, making them an attractive choice for online shoppers.

Sociocultural Factors: Consumer confidence in Pay Later services is rising, as indicated by increased satisfaction and referrals. Millennials and Generation Z, who are tech-savvy and prefer digital platforms, are particularly inclined towards these services. Their growing economic influence is likely to boost the acceptance and use of Pay Later solutions.

Technological Factors: The FinTech industry in Indonesia is advancing rapidly, supported by favourable regulations, investment in digital infrastructure, and a skilled IT workforce. Integration with e-commerce platforms enhances the customer experience and boosts conversion rates and customer loyalty, highlighting the synergy between technological advancements and consumer behaviour.

Ecological/Environmental Factors: Pay Later services have a lower environmental impact compared to traditional financial services due to their digital-first approach, which reduces the need for physical infrastructure and printed documents. This appeals to environmentally conscious consumers and aligns with the growing emphasis on sustainability in business practices.

Legal Factors: Strict data protection regulations require Pay Later services to handle user data meticulously. Compliance with these laws, overseen by the Financial Services Authority (OJK), is crucial for maintaining user trust. Credit regulations also impact service terms, interest rates, and consumer rights. Banks, regulated by Bank Indonesia, OJK, and LPS, provide a secure framework for Pay Later services, offering a competitive advantage to Jen Bank Pay Later.

Industry Analysis

The financial industry has been transformed by rapid technological advancements, leading to the rise of fintech. Zopa pioneered fintech with peer-to-peer lending, and by 2018, fintech companies introduced Buy Now, Pay Later (BNPL) tools, allowing installment payments without credit cards. Companies like Traveloka, Shopee, and Gojek have adopted BNPL to expand their payment options. Regulated by the Indonesian Financial Services Authority (OJK), BNPL offers convenience and flexibility similar to credit cards and has seen significant growth. Traveloka's BNPL has grown tenfold since 2018, Gojek's BNPL expanded 14 times, and Shopee manages Rp1.5 trillion in loans with a 95% success rate.

The Pay Later service market in Indonesia is projected to grow from US$1.5 billion in 2022 to US$9.2 billion by 2028. Digital payment transactions in Indonesia increased to US$73.9 billion in 2022 and are expected to reach US$131.1 billion by 2027. Integrated into e-commerce systems, Pay Later allows consumers to buy items and pay in installments with affordable interest rates. It is the third most popular payment method for e-commerce transactions, after e-wallets and cash on delivery. Primarily used for purchasing goods online, paying bills, and buying mobile phone credits, Pay Later is convenient and eliminates the need for additional apps. As mobile technology advances, the Pay Later industry is expected to grow, presenting an opportunity for Jen Bank to expand its service and increase user adoption.

Competitor Analysis

Competitor analysis is crucial for understanding the strengths and weaknesses of both current and potential competitors, helping to identify a company's competitive advantages and disadvantages. Jen Bank Pay Later is a postpaid payment solution allowing users to make purchases and settle payments the following month. Key competitors in this industry include ecosystem players GoPay Later and Shopee Pay Later, as well as fintech companies Kredivo, AkuLaku, and Indodana. New entrants such as BCA, BNI, and Livin by Mandiri are expected to join the market in 2024.

In Indonesia, Pay Later services are typically interest-free with smaller limits for everyday purchases, while longer-term Pay Later options charge interest and have higher limits for larger purchases. Initially used mainly for e-commerce, BNPL has expanded to include in-store purchases using QRIS or barcodes for transactions. To date there are only 5 Pay Later players who offer pay later post-paid and payment using QRIS each of them is unique in their way.

Table 1. Pay Later Competitive Landscape

Table 1 compares various Pay Later services in Indonesia, such as Gopaylater, SPayLater, Kredivo, Akulaku, Indodana, and Jen Bank. Each service differs in payment schemes, limit ranges, interest rates, fees, due dates, and eligibility requirements. For instance, Kredivo offers the highest credit limit, while SPayLater and Indodana stand out for unique features like low minimum age requirement and 0% interest rate, respectively. These services cater to diverse needs, with some focused on transaction fees and others on late fees. Availability varies across online and offline channels, with some being platform-specific. Gopay is a mobile payment app by Gojek, offering financial services like payment, Pay Later, and lending. SPayLater, under Shopee, provides users with payment flexibility on its e-commerce platform. Kredivo is a leading digital credit platform, while Akulaku offers digital banking and lending services. Indodana operates in the credit marketplace and peer-to-peer lending sectors. The Pay Later market in Indonesia is expanding rapidly, with Shopee Pay Later leading in popularity according to research by Populix. Jen Bank Pay Later faces challenges due to its basic features compared to competitors, lacking functionalities that appeal to consumers. However, opportunities exist to tap into untapped segments like small businesses and integrate additional features to enhance acceptance, especially among the unbanked population.

Porter’s 5 Forces

Based on Porter's Five Forces Analysis for Jen Bank Pay Later.

1. Bargaining power of suppliers: Medium to Low. Standardized BNPL technology and multiple providers reduce supplier power, allowing favorable terms for Jen Bank Pay Later.
2. Bargaining power of buyers: High. Numerous Pay Later platforms in Indonesia give buyers the freedom to switch easily, indicating high buyer power.
3. Threat of new entrants: Moderate to High. Despite requiring knowledge and permits, the growing competition in the industry presents a moderate to high threat of new entrants.
4. Threat of substitutes: High. Customers have various payment options (QRIS, cash on delivery, e-wallets, bank transfers, debit/credit cards) with no switching costs, posing a high threat of substitutes.
5. Rivalry among competitors: High. The Pay Later market is highly competitive with many similar offerings. Jen Bank can leverage its reputation and digital banking experience to stand out, but rivalry remains intense.

Overall, while Jen Bank Pay Later has opportunities in supplier bargaining power and entry into the market, it faces challenges due to high buyer power, threat of substitutes, and intense rivalry among competitors.

Consumer Condition analysis

The analysis provides comprehensive insights into consumer behaviour regarding Pay Later services, specifically focusing on respondent profiles, reasons for using Pay Later, types of transactions, brand awareness, advertising, social media influence, word-of-mouth impact, and publicity. Here's a summary:

Table 2: Consumer Condition Analysis

Overall, the analysis highlights the significance of digital platforms, social media, and word-of-mouth communication in shaping consumer perceptions and behaviours regarding Pay Later services. It also underscores the importance of effective advertising and publicity strategies in building brand awareness and credibility in the market. (Table 2)

Technology acceptance model (tam)

The analysis of consumer behaviour towards Pay Later platforms using the Technology Acceptance Model (TAM) provides valuable insights into the factors influencing users' intentions to adopt and continue using these services. Here's a breakdown of the key findings and recommendations:

Table 3: Technology Acceptance Model (TAM)

Recommendations:

1. Awareness Raising: Targeted social media campaigns and influencer collaborations can fill knowledge gaps and stimulate interest.
2. Consumer Education: Providing clear instructions and educational content can improve user comfort and onboarding.
3. Service Reliability: Ensuring seamless transactions and prompt customer service increases user confidence and satisfaction.
4. Expanded Use Cases: Broadening the range of use cases and raising spending limits can make the service more accessible and valuable.

Implementing these recommendations can enhance user engagement, satisfaction, and loyalty, ultimately leading to increased adoption and usage of Pay Later services. (Table 3)

Internal condition analysis

Internal conditions must be assessed to discover and develop the company’s value proposition about Jen Bank Pay Later. Based on this internal research, we may analyse the company’s value proposition and determine whether it is appropriate for the present market and industry conditions. To choose the best marketing plan to adopt, Jen Bank Pay Later must first analyse through VRIO Framework and Value Chain Analysis.

VRIO FRAMEWORK

• Valuable: The Jen Bank app provides valuable resources and capabilities, such as easy access to banking services, Pay Later functionality, and a user-friendly interface, creating value for stakeholders.
• Rarity: The app's features may not be entirely rare in the market, as similar functionalities are offered by other banking apps and Pay Later platforms. However, Jen Bank may have unique offerings or a distinct customer base that sets it apart.
• Imitability: Certain aspects of the app may be imitable, such as basic banking functionalities and user interface designs. However, if Jen Bank has proprietary technology or innovative features, it may be difficult for competitors to replicate them quickly.
• Organized: The effectiveness of the Jen Bank app depends on the organization's ability to manage and optimize its resources and capabilities. A strong management system, efficient processes, and a supportive organizational culture are crucial for leveraging the app's potential and sustaining competitive advantage.

This is a VRIO analysis result for each VRIO value based on observations of the Jen Bank app.

Table 4: VRIO Framework at Jen Bank

The VRIO framework analysis of the Pay Later service highlights several key points regarding its competitive position. The service benefits from the reputation of a well-established brand within a larger organization, adding value but lacking uniqueness, resulting in equal competitiveness. The expertise of finance professionals in executing the financial product is highly valuable and rare, offering a temporary competitive advantage due to its distinctiveness and the difficulty for competitors to replicate it. However, the lack of organization impedes the utilization of valuable and scarce technological advancements and broad merchant alliances, thereby preventing the exploitation of a competitive advantage. The service's most significant strengths lie in its intangible attributes. The ability of the Pay Later product to impact customer credit scores and its secure, regulated status by authorities such as OJK, BI, and LPS provide enduring competitive advantages. These elements not only possess significant value and scarcity but also present challenges in terms of replication and are meticulously structured, ensuring a lasting advantage in the market. (Table 4)

Value chain analysis

Value chain analysis helps companies pinpoint where they create value and where they may be inefficient. This understanding is crucial as it determines a company's ability to generate profits. The value chain framework divides operations into primary and support activities, aiding in cost assessment and strategy implementation.

• Primary Activities: Product development, sales, distribution, and after-sales service.
• Inbound Logistics: Managing cash, data, and information flow, including handling cash deposits, verifying, sorting, and storing mailings, and overseeing digital data flows such as online purchases.
• Operations: Diverse services like account management, transfers, payments, loan applications, and tracking loan repayment, all accessible through online platforms and smartphone applications.
• Outbound Logistic: Delivery and management of financial services to end-users through online banking portals, mobile apps, digital wallets, virtual credit cards, and loan processing, along with customer support and communications.
• Marketing and Sales: Marketing activities in digital banking activity to sell banking products and services through digital platforms. These activities involve targeted online advertising, social media campaigns, and personalized offers based on customer data analytics. 
• Services: In the context of a digital bank, the value chain of services would be adapted to reflect the unique activities and processes that add value to the customer's experience in a digital environment. Customer support is provided through digital channels such as chatbots, email, and online messaging services.
• Procurement: Acquiring IT hardware, software licenses, cloud services, and other technology-related items necessary for the bank's operations.
• Technological Development: Developing new banking software, maintaining existing systems, implementing security protocols, and innovating new digital banking features and services.
• Human Resources Management: Recruiting, training, developing, and compensating employees skilled in cybersecurity, digital customer service, and digital product management.
• Firm Infrastructure: Organizational structure, planning, accounting, legal framework, and overall management processes, including digital infrastructure like servers and cloud services hosting operations.

MARKETING MIX

The marketing mix, as per Kotler & Armstrong (2011) [4], comprises controllable tools influencing buyer response, known as the 7Ps: Product, Price, Place, Promotion, People, Process and Physical evidence.. Firms must craft a balanced composition of these elements for effective marketing strategies.

Product: Jen Bank Pay Later is a post-paid payment solution integrated into the Jen Bank app, offering financial flexibility with a maximum late fee of Rp30,000. It provides instant access to a pre-approved monthly limit of Rp500,000 with no interest or hidden fees. Users can settle payments the following month, avoiding the need for top-ups or transfers. Linked to Jen Bank QR, it serves as a funding source for transactions at QRIS merchants, both online and offline. The app's security features, including pin codes and passwords, ensure secure transactions.

Price: Jen Bank Pay Later offers a competitive pricing model with zero interest and a fixed monthly usage fee of Rp. 15,000. Additionally, it imposes a cap on late fees at Rp. 30,000, providing consumers with financial flexibility and a cost-effective alternative to traditional credit cards or loans.

Place: Jen Bank Pay Later is exclusively available through the Jen Bank application, emphasizing convenience through online accessibility. Users can download the Jen Bank app from Google Play and Apple Store, ensuring easy access to the service anytime, anywhere.

Promotion: Promotion in marketing involves informing, persuading, and influencing consumers to choose a product or service. For Jen Bank Pay Later, promotion is executed through cashback offers to users and collaborations with merchants. Jen Bank promotes its Pay Later service through merchant collaborations, offering consumers discounts for using the service. This strategy has proven effective, with 56.7% of users in 2023 acquired through such promotions. Jen Bank also employs cashback promotion in both personal and mass communication strategies for marketing. Personal communication channels include push notifications, direct emails, in-app information, and their website, achieving high feature activation rates but low active user rates.

People: For Jen bank pay later the primary target audience comprise tech savvy individuals and digital natives who prefer flexible and seamless payment options. Educational content and tutorials on effectively using Jen bank Pay Later enhancing user experience and satisfaction. Comprehensive customer support available through various channels including chat bot and call center.

Process: The service process for Jen Bank Pay Later is designed to be straightforward, efficient, and user-friendly, ensuring a positive user experience from activation to repayment. Simple activation process within the Jen Bank app, easy management of payments and monitoring of spending through the app.

Physical Evidence: Despite being a digital product, physical evidence includes the app interface and user feedback.  User friendly app interface providing a seamless experience, positive review and testimonial on app. Demonstration and tutorial on website reinforcing trust and reliability

SWOT Analysis

The result of internal analysis can determine strengths and weaknesses. The result of external analysis can determine opportunities and threats. Jen Bank's Pay Later service benefits from several strengths, including technological advancement, which enables fully digital operations that reduce costs and increase efficiency. The bank has extensive partnerships with offline and online merchants, enhancing its market reach. Responsible use of the service can improve users' credit scores, and compliance with regulations from OJK, BI, and LPS fosters trust and security. Additionally, Jen Bank boasts a robust infrastructure that allows it to adapt quickly in the rapidly changing fintech landscape, offering competitive pricing with low or zero interest rates and minimal fees.

However, Jen Bank faces weaknesses such as low awareness and usage of its Pay Later service, which low awareness and user activation. The high competition in digital marketing also demands constant innovation and cost-effective strategies. Opportunities exist to enhance brand awareness through advertising, social media, and word-of-mouth marketing. The moderate bargaining power of technology providers allows for competitive partnerships, and there is growing market preference for Pay Later services over traditional credit methods. Government support through regulatory frameworks and financial inclusion programs further bolsters growth potential.

Despite these opportunities, Jen Bank faces threats from the competition, with high buyer bargaining power due to low switching cost among BNPL services, leading consumers to easily switch to providers with better terms. Low awareness of Jen Bank Pay Later and its low credit limits hinder user acquisition and market penetration. Industry dynamics present challenges with moderate to high threats of new entrants and substitutes for products like credit cards, which are well established and widely accepted, posing significant barriers to the growth of Jen Bank Pay Later.

Business Analysis

Jen Bank's Pay Later service operates in a dynamic market shaped by economic recovery, technological advancements, and evolving consumer preferences. Despite regulatory challenges, opportunities arise from e-commerce growth and favourable government policies. The competitive fintech landscape necessitates continuous innovation and strategic differentiation.

Internal Operations

Jen Bank's digital platform and strategic user experience are strengths, but improvements in value chain operations and marketing strategies are needed. The VRIO framework highlights a sustainable competitive advantage through digital proficiency and comprehensive financial services.

Root Cause Analysis

Low adoption rates are due to a lack of awareness, limited payment thresholds, integration issues, and trust concerns. Addressing these through effective communication, enhanced product features, and reliable user experiences is essential for increasing adoption and usage.

Solution And Proposed Implementation Plan

The TOWS Matrix is a strategic planning tool used to analyse an organization's internal strengths and weaknesses alongside external opportunities and threats. It helps develop strategies by aligning strengths with opportunities and mitigating risks. The matrix ensures a comprehensive approach to strategy by considering both internal and external factors. Below is the summarized TOWS Matrix for Jen Bank Pay Later:

Table 5 Jen Bank Pay Later TOWS Matrix

Proposed Marketing Strategy

After determining the TOWS matrix, it resulted in twelves strategies that can be implemented by Jen Bank Pay Later in improving their awareness. However, to prioritize these strategies to answer the business issue, they need to be measured based on their feasibility and potential impact on brand awareness for Jen Bank Pay Later, as figure below:

Figure 2: TOWS Strategies Prioritization

This matrix helps in prioritizing the strategies based on their feasibility and potential impact, guiding Jen Bank to focus on answering the business issue. Three strategies are prioritized:

1. Educate about financial strength: communicate Jen Bank’s strong regulatory compliance and secure procurement to build trust and differentiate from competitors.
2. Boost digital and social media presence: Strengthen online presence through targeted campaigns and active social media engagement to reach a wider audience, highlight unique features, and attract more Pay Later Customers.
3. Improve promotion for product trials: enhance promotional efforts using various advertising channels to increase brand recognition, reach wider audience, and effectively communicate the benefits of the pay later feature.

Justification of Implementation Plan

To enhance awareness and usage of Jen Bank Pay Later, the following strategies will be implemented. First, educate and enhance awareness through government support and competitive pricing by partnering with government agencies to promote financial literacy programs that highlight the benefits and security of Pay Later services. This initiative will include workshops, informational campaigns, and endorsements from trusted government figures to build credibility. These collaborations will be promoted through publicity, social media, and online news to enhance trust and visibility. Second, optimize marketing for awareness by implementing a comprehensive strategy using SEO, social media, advertising, and publicity to highlight the security and affordability of Jen Bank Pay Later. The focus will be on advertising campaigns across multiple platforms, emphasizing cost-effectiveness and security. Consumer testimonials and success stories will be used to build trust, while engagement with prospective clients on social media will involve educational posts, interactive content, and promotional offers. Media attention will be secured via influencer collaborations, press releases, and news articles. Additionally, website SEO will be enhanced with relevant keywords, high-quality content, and a user-friendly interface to attract organic traffic. Finally, to improve awareness and usage amid intense competition, educational campaigns will be launched to inform prospective users about the benefits and ease of using Pay Later, addressing misconceptions and highlighting unique features. Competitor activities will be monitored, and strategies adjusted accordingly. Competitive pricing and attractive offers will be implemented to retain and attract users. 

Table 6 Jen Bank Pay Later TOWS Matrix

From table 6 defining the location of the action plan and the individual in command to elaborate on the implementation plan for the proposed strategy. One initial strategy involves establishing partnerships with government agencies to educate financial literacy, emphasizing that Jen Bank Pay Later has strong financial support and is regulated by OJK, BI and LPS. This will be accomplished with the assistance of the product, marketing, and product marketing teams, as well as the government relations team. It will elaborate on the technical aspects of the program's design and how to increase awareness through this campaign. This collaboration may encompass a workshop, an informational campaign, testimonials from customers and the endorsement of reputable government figures to establish credibility and instill confidence in the target audience. This partnership may be advertised via online news outlets, social media, and publicity.

Boosting awareness in digital and social media presence is the second strategy. The marketing and product marketing teams must develop communications that emphasize the affordability and security of Jen Bank Pay Later, which is supported by financial institutions such as OJK, BI, and LPS. The marketing team must create a go to market plan and develop communication materials for digital advertisements, educational content for social media, organize a community event, and organize a public relations event by inviting the media to generate value on the media. Subsequently, the marketing team must increase SEO content by organically pushing publicity content, and finally, conduct keyword research to identify keywords that are relevant to the target audience. The customer experience team will conduct a final evaluation following each activity to determine whether the campaign was successful and to follow up with prospective leads.

The third strategy improves promotion to lead product trials. To participate in this competition, the partnership and marketing teams must establish a promotional and merchant strategy in collaboration. The team must then execute the program with a focus on the Jen Bank Pay Later promotion and merchant to demonstrate the product's usability to the audience. The customer experience team will conduct a three-month evaluation of the program to determine the efficacy of the campaign and to follow up with new leads.

The rapid advancement of technology has significantly altered business transactions and customer behaviour, especially within the financial services sector. Jen Bank, as a part of Ben Bank, has ventured into the digital banking landscape with its Pay Later Feature, aiming to provide flexible financial solutions for its customers. This study aimed to analyse the current awareness of Jen Bank Pay Later, identify areas of improvement, and develop a strategic marketing plan to enhance its market position. Despite the potential of Jen Bank Pay Later, there is limited awareness and safety among selected customers. This can be attributed to ongoing marketing efforts and a narrow range of payment options. The pay later market in Indonesia is growing, driven by increasing consumer acceptance of digital payment solutions and a shift towards cashless transactions. The younger demographic, particularly Millennials and Generation Z, are pivotal in this market due to their tech savviness and preference for digital financial services.

In the competitive landscape Jen Bank faces stiff competition from ecosystem players like Go Pay Later and Spay Later, as well as fintech powered services such as Kredivo and Akulaku. Each competitor offers unique features and benefits, making it imperative for Jen Bank to differentiate itself effectively. In analysing the external conditions, several analyses are being held such as PESTEL, Porter Five Forces, Industry Analysis, Competitor Analysis and consumer condition to identify opportunity and threats. For internal conditions, this research analyses using VRIO framework, Value chain analysis and 7ps Marketing mix of Jen Bank Pay Later to determine strengths and weaknesses. Therefore, SWOT is determined and further analyses to propose the marketing strategy. Jen Bank Pay Later strength is bank with technology advancement, connected to many merchants, Pay Later user impact on user credit score, secured and regulated by BI, OJK and LPS, Strong technological structure and competitive pricing. Weaknesses are low awareness and usage and follow with competitive promotion in the Pay Later market. The opportunities are enhancing brand awareness, bank as financial backer in Pay Later feature, competitive pricing, market growth in Pay Later and have government support. On the other side, threats are the changing customer preferences because of bargaining power of buyers, threat of new entrants and threat of substitutes and rivalry among competitors become intense competition in the pay later market. Thus, several recommendations are being made.

Funding: No funding sources.

Conflict of interest: None declared.

Ethical approval: The study was approved by the Institutional Ethics Committee of School of Business and Management ITB.

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