Technology-driven digital transformation of gold pawn services at Pegadaian Indonesia: Opportunities and challenges

Abstract

Background: Digital transformation has become a strategic priority for financial institutions seeking greater efficiency, transparency, and service quality. Yet most existing research focuses on banking and fintech, leaving non-banking, asset-based financial services largely unexplored. This study addresses that gap by examining digital transformation in gold pawn services, focusing on its key drivers, opportunities, challenges, and organizational impact within a state-owned financial institution in Indonesia. Methods: Using a qualitative case study approach, the research draws on secondary data from institutional reports, policy documents, corporate publications, and academic literature, analyzed through thematic coding and interpretative synthesis grounded in an information systems perspective. Findings: Findings show that integrated digital platforms and centralized information systems play a central role in improving efficiency, ensuring reliable data, and strengthening coordination. Digital transformation also opens opportunities to enhance transparency, customer experience, and financial inclusion, though the process faces real obstacles, including outdated legacy systems, limited organizational readiness, gaps in human capability, and the complexities of change management. Overall, this transformation tends to unfold gradually and depends heavily on context, requiring alignment between technology, organizational capacity, and the specific nature of the service. Conclusion: The study shows that digital transformation tends to unfold gradually and depends heavily on context, requiring alignment between technology, organizational capacity, and the specific nature of the service. Digital platforms also shape communication between stakeholders and reshape service interaction patterns within the institution. Novelty/Originality of this article: By extending digital transformation frameworks, largely developed within banking and fintech, into the underexplored domain of gold pawn services, this study offers an original theoretical contribution. It examines how integrated digital platforms reshape communication, coordination, and service delivery in asset-based financial operations, while offering practical insights for practitioners and policymakers designing context-aware digital strategies.