PROPOSED BUSINESS STRATEGY TO SOLVE THE INEFFECTIVENESS OF BUSINESS BANKING LOAN PROCESSING AND CROSS-SELLING ACTIVITY USING SYSTEMIC DESIGN THINKING CASE STUDY: BANK DEWANGGA INDONESIA (BDI)

• Main Author: Alvin Maulana, Muchamad
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/68613
• Institution: Institut Teknologi Bandung

Technology and Digital Process have been growing swiftly, and the world seems borderless with the existence of the internet. This is undeniably affecting all of the industries in the world, and the banking industry is a part of it. Back in the day before, intentionally bank's role is to collect funds in the form of deposit and distributes them back to the public in the form of a loan or any other form to improve the living quality of the people in a nation. However, the internet and technology push the banking industry to play more role in society. In traditional business banking, customers must visit the bank to save money on the account or collect the money with the teller's help. Currently, the customer prefers to do it whenever and wherever they are, of course with the help of the internet. It also occurred in loan processing. The faster the services and processes, the more loyal the customer is to the bank, and the more profit that the bank will gain. BDI, as one of the State-Owned Companies in Banking, has been trying to transform the business process from a traditional way to a digital bank that can seamlessly accommodate all customer needs. The competition in the banking industry is not that easy. Some banks have already transformed the business with the adaption of technology. Another challenge is that when Covid- 19 hit the world in 2020, the banking sector was affected by this significant pandemic outbreak. Those who were not ready yet, are struggling to keep on track, but those who prepared and shifted to digital banking are slowly recovering faster than the others. This is also an opportunity for the bank to change the business process to be more effective and efficient, especially in lending processing and cross-selling activity. BDI is aware that depending on loan products is not sustainable for the business; once the business in a country falls like it was at the beginning of Covid-19, the company could not avoid the negative impact, the loan quality was declining, and of course, the profit is shrinking compared to previous years. This research aims to identify BDI's effectiveness in business banking loan processing and cross- selling activity. It will also assess which part of the business systems can be improved or even transformed into new business processes. The business process is quite complex and related to each other; for this qualitative research, the author uses the systemic design thinking method with six main processes: inquiring, framing, formulating, generating, facilitating, and reflecting. The result of the study found that the current business banking loan processing and cross-selling activity is not fully effective and not optimal to support and compete in the market. The lack of integration within the current credit tools that the employee use, too many tools that are applied in the business process, the cross-selling process still low, and the lack of motivation from the employee are some of the reasons why the business banking in BDI is not fully effective and optimal to help the company gain significant profit. Author list some recommendations to improve the effectiveness of loan processing and cross- selling to lift the company's profit. The first is to make an integrated credit tool that can accommodate end-to-end credit processing with integrated data and systems. Then, make new governance to support the corporate transformation in terms of the change of business process and motivate the employee to work in optimal power. Also, applying cross-selling activity as one of the main actions, see the opportunity from a broader perspective. The loan is not the only source of profit, but there are more products to offer the customer; the final achievement is to make a great business ecosystem for customers with BDI's products.