Advances in Management and Applied Economics

The Development of Online Banking System in Indonesia, Implication in Human Resources Management Strategy

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• Abstract

  The development of information technology has affected the banking business strategy. Internet have been the backbone in the last decade in expanding the banking business, especially in increasing financial transaction services. The term online banking has emerged and became an aspect in banking services development. Bank Indonesia coined the term Electronic Banking to include phone and short messaging services into the area. This study is aimed to describe the banking industry strategy in accommodating information technology development in retail banking transaction services; the requirements in operating core human resource especially to front-liners viewed from the development of banking transaction; and what competencies are expected by the banking industry in the era of Electronic Banking. The study found that opening branch offices are still conducted by banks. The assumption that the banking business strategy has developed towards a cashless society has not yet been proved.