BUSINESS PROCESS IMPROVEMENT IN A FINANCIAL TECHNOLOGY COMPANY PT X

• Main Author: Ramadhani Lubis, Afia
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/39594
• Institution: Institut Teknologi Bandung

PT X is a financial technology company which provides an investment and lending platform for SMEs with a peer-to-peer lending to ease transaction. A financial technology company creates many benefits but can also disrupt financial system if not controlled properly, and although it has been regulated by POJK Nomor 77/POJK 01/2016, in August 2018 there had been five financial technology companies which registrations had been cancelled. Therefore, efforts are needed to be taken to ensure the company’s readiness. Other than that, with the growth of financial technology industry and a new system implementation, process adjustment is needed by PT X. This also prompts the urgency of process improvement and restructuration to support internal operation’s readiness. This research is aimed to design process improvement for PT X. Business process improvement (BPI) is used to improve business processes by providing solutions that can increase process performance and quality which starts by process understanding and process mapping. The handling of lending activities business process is then mapped in reference to the Banking Process Classification Framework that consists of five levels and it is also mapped with cross functional flowchart to show divisions’ interaction. A business process evaluation is then conducted with Failure Mode and Effects Analysis to identify failure modes as well as streamlining evaluation to identify corrective actions to improve business processes. From 101 business processes at the lowest level, 155 potential failure combinations are gathered. Based on Pareto Analysis, 80% of the cumulative RPN is from 38 business processes at the lowest level. In these critical business processes, 24% are classified as bureaucratic, 34% are real-value adding, 16% are organizationalvalue adding, and 50% are non-value adding. Process improvement is done by identifying failure root causes and streamlining analysis is conducted so improvement efforts are based on the classification of the business processes. The designed business process improvement includes increasing process quality, standardization, elimination, and automation of critical business processes of PT X. Business process improvement resulted in 19 critical business processes of which 11% are classified as bureaucratic, 68% are real-value adding, 32% are organizational-value adding, and none of which are non-value adding. Based on the proposed process improvement, the company has to implement process improvement by making process business improvement team to implement improvement of operational processes, human resource recruitment, and information system planning.