IBS officially operated in 2004 based on the Ministry of National Education of the Republic of Indonesia decree number: 37/D/O/2003. The establishment of IBS is a result of the development of Lembaga Pengembangan Perbankan Indonesia (LPPI), a non-profit institution that gives service to banks and the community to produce professional bankers. Historically, LPPI has played a role for more than 50 years and its first establisment was in the 1950s. The name and the activity of this institution experienced a few changes, beginning with Akademi Bank, then Pendidikan Tinggi Ilmu Keuangan khususnya Perbankan (PTIKP), then Lembaga Pengembangan Perbankan Indonesia (LPPI) and later Institut Bankir Indonesia (IBI). However, since 2004 this institution has returned to the name of LPPI.

In 2008, BAN-PT, which is the official accrediting organization, gave a “B” score and in 2013 gave the same accreditation score. The accreditation score was obtained by the S1 (Strata 1) Accounting and Management study programs. The licenses for the two study programs are officially for specializing in banking.

In September 2008, IBS for the first time awarded S1 (bachelor) degrees to approximately one hundred people. Until today, IBS has awarded S1 degrees to eight hundred ninety people. IBS alumni have worked in various fields, mostly in finance and banking. Some alumni have even their own business.

In 2010, based on the Ministry of National Education of the Republic of Indonesia decree number 98/D/O/2010, IBS is allowed to offer the S2 (master degree) Master of Management (MM) study program. In 2013, the MM study program received a B accreditation score from BAN-PT. Twenty two people have graduated from this study program. Most of the students in the MM program are bank employees, such as from Bank Indonesia, Bank Mandiri Syariah, Panin Syariah, Bank BRI, BRI Syariah, Bank Bukopin, Bank DKI, Bank Exim, Bank Capital, Citibank, Bank BNI, and Bank BTN.

Since 2014, the activities and management of the Accounting, Management, and MM study programs are being upgraded. The upgrading of all the aspects is to obtain a re-accreditation score of A from BAN-PT. It is hoped that all the efforts being done can achieve an accreditation score of A institutionally.

IBS has been networking with various institutions, especially those related to finance and banking. The MOUs signed included cooperation with Bank Indonesia and Otoritas Jasa Keuangan (Financial Service Authority). Other cooperation are, among others, with Bank Mandiri, Bank Syariah Mandiri, Bank Muamalat Indonesia, Bank BCA Syariah, Panin Syariah, Bank Danamon Indonesia, BRI Syariah, BNI Syariah, Bank Mega Syariah, BTPN Syariah, Bukopin, and Bank DKI.

In 2014, Bank Mandiri offered a grant to improve the indoor sports hall. Besides that, Bank Mandiri offered a grant to build a mini bank. Bank Syariah Mandiri offered a grant to build a musholla in 2014. In 2015, Bank BRI donated funds to build a canteen that can be used as a place to eat lunch for the students, employees, and the community around the campus.