摘要：This research examines the way in which traditional banks are competing against the emerging fintech startups. This study identifies driving factors and uniqueness that illustrate the peculiar characteristics of incumbents,analyzes their internal readiness and capabilities,and examines their strategic response against fintech startups. In do ing so,this paper examines Small Town Bank (STB)1 ,a regional bank in Indonesia, regarding its ability to innovate. Data are obtained from primary sources through internal and external questionnaires,as well as secondary data. The results of the study indicate that,in general,the bank already has a reasonably good innovation readiness, but there are several aspects that need to be noted,namely:optimization of current services,consolidation,and internal restructuration. Concurrently,while fintech has a very broad and massive technical and managerial impact,it does not mean that incum?bent banks and traditional financial services cannot compete.
