Volume 7, Issue 7, July – 2022 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Analysis Of Digital Product For Multipurpose

Financing through the Mobile Banking System as a
Digital Transformation Effort in Bank X
Rosalyn Febriyani Inaku Tukhas Sihlul Imaroh
Master of Management Program, Mercu Buana University Master of Management Program, Mercu Buana University
Jakarta, Indonesia Jakarta, Indonesia

Abstract:- Banks need to provide digital financing services I. INTRODUCTION

without place and time restriction to improve effectiveness,
efficiency and create faster, more comfortably and better The development of information technology in the digital
continuity of service to customers. Bank X which operates era has brought changes in the management and operations of
in Indonesia seeks to improve the performance of online the Bank. One of the other phenomena that has emerged in the
financing services in order to improve overall financing era of digital financial transformation is financial technology
performance. This study aims to determine the (fintech). The background for the emergence of fintech is when
effectiveness of the mobile banking model of online there is a problem in society that cannot be served by general
financing service compared to traditional manual models; banking because of strict regulations from the regulator and the
to find out the constraint factors experienced after the limitations of bank branches to serve the community in certain
launch of online financing products; to find out solutions areas. With the existence of fintech, it has created various
to solve online product financing constraints. The research financial service opportunities by adopting digital transaction
method which used is descriptive qualitative research. This banking, convenient to use, paperless and user-friendly that
study uses primary data and secondary data as well as provides added value in meeting customer satisfaction.
improvement methods using the Six Sigma DMAIC According to the 2019 Islamic Finance National Committee,
(Define-Measure-Analyze-Improve-Control) method. The Indonesian people who are not familiar with bank transactions
results showed that the number of successful online as much as 76% of the population, if only 2/3 of them already
partner financing applications disbursed was 11.15% of have a mobile phone, then they can recognize financial
the total submissions. The effectiveness of online transactions by accessing fintech applications. According to
multipurpose financing product can acquire new regular Indonesia Financial Authority, fintech growth experienced a
manual financing by 65%. There are 6 factors that give a high increase, especially in the type of digital financing,
high impact on the low disbursement of online reaching 249 trillion rupiah until August 2021 or increase of
multipurpose financing product including: bad reputation 60% compared to December 2020.
of collectability, service failed (system constraints), name
data does not match the civil registration data, and
approval limit is below Rp 10.000.000, does not meet risk
acceptance criteria, customer debt burden ratio more than
50%. Solutions to solve problems include expanding
market segments, improving the IDEB system, developing
product feature changes by relaxing the bank's risk
acceptance criteria from DBR to DSR, increasing the
financing period and limit to more than IDR 50,000,000, Table 1: Financial Technology Lending
developing automation recommendations to other Source : Indonesia Financial Authority (2021)
financing options with a small limit such as a paylater in
mobile banking if the customer gets the minimum Digital technology that used by fintech has driven positive
financing limit. and negative changes for individual customers and for banks.
In the digital transformation business process, it makes easy for
Keywords:- Six Sigma. Digital Banking, Digital Financing, customers to order products, deliver goods, make payments or
Digital Transformation. transactions for various things easily and efficiently from
fintech applications. This effect continues to the price of the
product which will be cheaper, this is because the marketing
and administrative processes can be minimized. With this shift
in activity towards digital, Banks that are still running
traditional business processes will be abandoned by their
customers. Therefore, the presence of digital transformation is
a must for Bank X to improve digital-based services that create
efficiency, cost saving, and able to encourage innovation and

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Volume 7, Issue 7, July – 2022 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
to provide speed in service, in line with the Bank's Vision and Innovations in the operation of digital financing
Mission to become the top 10 Global Islamic Bank in the world. application services have been able to shorten the operational
service time of the financing process in 15 minutes to 1 day as
Bank X is a sharia banking financial services company long as the results of data verification held by the Bank are
whose business entities that carry out their operational complete and appropriate. If there are incomplete and other
activities based on sharia principles (based on Qur’an and technical problems, the customer can reapply from the
Hadist). Financing is an activity of a Sharia Bank in distributing beginning at a different time or submit a complaint to the Bank
funds to parties other than the Bank based on Sharia principles. X Call service for disbursement.
The distribution of funds in the form of financing is based on
the trust given by the owner to the users of the funds. The Based on the monitoring observation of online
recipient of the financing has the trust of the financier, so that multipurpose financing since the trial run started from 16
the recipient of the financing is obliged to return the financing September 2021 to 7 February 2022, there have been problems
that has been received in accordance with the agreed period in that encountered, as presented in the following table based on
the financing contract. Bank X has several financing programs data obtained on 7 February 2022:
which include: Mudharabah, Musyarakah, Murabahah and Bai'
Salam financing.

With this financing, it is hoped that it will encourage the

community to be able to create businesses and to develop them.
Recently, Bank X financing has begun to be intensively
disseminated to build the community's economy or also to meet
the needs of the community. One of them is Civil Servants
(PNS) or Candidates for Civil Servants (CPNS), in Indonesia Table 2 Financial Technology Lending
there are not a few people who work as PNS/CPNS. There are Source : Data Bank X (2021)
also many civil servants who need a lot of funds to meet all
their needs, such as multipurpose financing, education costs,
home renovations, and other needs. So that it encourages to do
financing to the Bank. The financing provided by the Bank to
customers almost entirely requires collateral in the form of
principal guarantees or additional guarantees to cover if one
day the debtor cannot pay its obligations to pay off debts in
accordance with the agreement.

One of the financings at Bank X that has been transformed

into a digital process is online multipurpose financing that does
not require collateral. This financing is a new financing service
from Bank X, with a multipurpose purpose, the process of
which is full digital financing (processed end-to-end through
Fig. 1: Number of Online Multipurpose Financing
digital solutions) through Bank X's mobile banking, starting
Application in Bank X
from customer submissions to financing disbursement (process
Source : Data Processed (2022)
less than 15 minutes). The online multipurpose service, which
was just launched on 1 November 1 2021, provides a financing
Based on the above data, it can be seen disbursed
limit from Rp. 10,000,000 to Rp. 50,000,000, currently it is still
financing applications is very low and rejected financing
intended for the special segment of payroll customers, namely
applications is very high. Therefore, it is necessary to conduct
for civil servants that their institution has collaborated with the
research on the evaluation of digital financing products at Bank
payroll system with Bank X. This multipurpose digital
X, especially Multipurpose Online financing through mobile
financing product can be accessed anytime and anywhere by
banking as an effort of digital transformation to improve
using the “Bank X Mobile” which is Bank X mobile banking
financing performance at Bank X by considering the
application.
constraints/problems that occur in its financing services.
This Online Multipurpose Financing product has
One method of process improvement that is often used is
advantages over competing products from other Banks, namely
Six Sigma method. The application of the six sigma method has
that customers can apply for this financing from Bank X
proven to be very suitable for the needs of the service industry
Mobile from anywhere without coming to the branch, no need
(Sharma & Chowhan, 2013). There have been many studies on
to complete and send personal files, without collateral, safe
the successfule implementation of Six Sigma in the financial
according to sharia, and the financing process takes no more
sector. Based on the description above, researchers are
than 15 minutes.
interested in using the six sigma method in improving online
multipurpose digital financing products as an effort of
transform digital banking at Bank X.

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Volume 7, Issue 7, July – 2022 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
II. LITERATURE REVIEW Welcoming the era of Bank 4.0, Islamic banking digital
banking products and services that can be offered to customers
Theory of Sharia Financing Product are in the form of Automated Teller Machines (ATM),
The definition of financing is funding provided by a party electronic data capture (EDC) machines, electronic banking
to another party, to support planned investments, either by products, in the form of mobile banking, internet banking,
themselves or by institutions. The difference between the term Cash Management System (CMS) , Officeless Financial
financing and credit is if the term financing is used for Islamic Services (Laku Pandai), and e-money. Digital banking
banks, while credit is for conventional banks. In addition, what services and products continue to be developed by optimizing
distinguishes between financing and credit is that Islamic the use of customer data in order to serve customers more
banks are based on the principle of profit sharing or “ujroh” on quickly, easily, and according to customer experience, and can
financing, while for conventional banks, it is based on the be completely and independently carried out by customers,
principle of interest profit. According to Indonesia Law No. 7 taking into account security aspects.
of 1992 concerning banking as amended to Indonesia Law No.
10 of 1998 concerning Banking in Article 1 number (12):  Basic Concept of Six Sigma
Six sigma is a method for improving business processes
"Financing based on sharia principles is the provision of that aims to find and reduce the causes of failures and errors,
debt or claims equivalent to it based on an agreement between to increase productivity, to meet customer needs effectively,
the Bank and other parties that require the party to be financed and to get a better return on investment in terms of production
after a certain period of time with compensation or profit and service (Evans & Lindsay, 2007)
sharing".
According to Chase (2011), Six sigma uses DMAIC
Financing in Islamic banks contains various elements methodology (Define, Measure, Analyze, Improve, Control).
that stick together, namely:
1. Trust  Define
2. Term The define stage is the first operational step in the Six
3. Risk Sigma quality improvement program (Gaspersz, 2002). This
stage is carried out to determine critical things that are
Online Financing is a type of financing that can be considered by consumers.
submitted online through a mobile application, without the
need to meet face-to-face. This method provides convenience  Measure
and speed in the financing application process. Online The measure stage is the second operational step that
financing is growing very fast in Indonesia. The convenience aims to evaluate and understand the current condition of the
and speed of process are the main attraction. Financing process or performance. At this stage, data collection and
applications, which have been known to be long and processing is carried out before improvement is carried out.
complicated, can now be done quickly, easily, online and
without face to face.  Analyze
The third stage is analyze, which is the stage of
 Digital Transformation determining the cause and effect of a problem and
According to Danuri (2019), Digital transformation is a understanding the existence of source of variation from the
change way of handling by using information technology to data obtained at the measure stage (Montgomery and Woodall,
gain efficiency and effectiveness. 2008). In addition, a fishbone diagram is also made to
determine the causal relationship of a problem. Fishbone
Application of Digital Banking in Islamic Banking diagrams are very useful in quality improvement because of
One of the challenges of Indonesian Islamic Banking is their ability to visualize the root of the problem simply as
Information Technology (IT). Things that need to be shown in Figure 2.1.
anticipated when using digital and automation technology, are
the increasing efficiency of product production and marketing,
changes in the composition of human resources and aspects of
customer protection.

Conceptually, according to Cisco Consulting Services

(2014), the concept of Bank 4.0 was formed in the era of the
internet of everything where its form can be applied with the
existence of digital banks, mobile banking, digital branches,
intercloud, omni-channel analysis and "Market Of One"
Customer Centricity. In the development of digital banking,
each era has a focus on improving customer experience that
combines human resources, processes, data and other
supporting parts into a more personal digital banking concept,
according to each customer's needs. Fig. 2: Cause and Effect Diagram (Fish Bone Diagram)
Source : Heizer & Render (2015)

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Volume 7, Issue 7, July – 2022 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
 Improve In this study the define stages can be seen in the
This stage is an operational step which is the stage of following figure.
drafting improvement proposals to be later implemented in the
Bank. There are many improvements used to improve the
process seen from several factors, namely humans, methods,
environment, and measurement.

 Control
This stage is the last operational step in the six sigma
method in which the process of monitoring the performance of
the process that will come after undergoing improvements is
carried out.

III. RESEARCH METHODOLOGY

The research approach used descriptive qualitative

research using case study methods that focus on historical,
descriptive and action analysis. Historical research is obtained
by collecting, examining and evaluating the process of Fig. 4: Improvement Charter
Multipurpose Online financing application. While descriptive Source : Researcher Data (2022)
research aims to determine the root cause of rejected
financing. Furthermore, with action research, it is hoped that Measure stage
the causes can be known and overcome so that the rejected At the Measure stage, it is necessary to define problems
financing can be minimized. as a reference in making improvements. Determination of the
problem is done by means of a workshop with the core team.
Several approaches were used for primary and secondary
data collection, namely by conducting direct observations and Based on the percentage of the total number of problems,
interviews with the project management team that became the customer collectibility problems, service failures, and the
object of research, including the Digital Asset Project Manager suitability of customer demographic data are the top three
who also acted as a subject matter expert in this study. problems faced in the online multipurpose digital financing
Meanwhile, secondary data was obtained from internal data of process. For more details, the problem data as presented in the
Bank X as well as literature studies from various publications following Tables and Figures.
and journals related to this research.

IV. DISCUSSION

This study uses Six Sigma methodology based on

DMAIC stages with an explanation of each stage as follows:

Define stage
The online multipurpose financing product was launched
in August 2021. The effectiveness of both regular and online
multipurpose financing in the period August 2021 to February
2022 is shown in the following figure.

The Effectivity of Multipurpose Financing Product in

Bank X
(August 2021 - February 2022)

35% Table 3 Case of Rejected Financing Application

Source : Data processed (2022)
65%

Regular Financing Online Multipurpose Financing

Fig. 3: The Effectivity of Multipurpose Financing Product in

Bank X
Source : Data Bank X (2022)

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Volume 7, Issue 7, July – 2022 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165

Pareto Diagram The high rate of failure to disburse online multipurpose

Rejected Financing Problem financing can be caused by the following problems:
30.00% • Bad collectibility problems due to unpaid installments and
27.42%
poor financing history in other finances.
25.00% • Service fail problem was caused by OJK IDEB SLIK
21.76%
20.81% (Financial Information Service System of Debtor
20.00% Information operated by Indonesia Financial Authority)
15.15%
was having problems and the financing system needed
15.00% improvement.
• Customer data problem that does not match with civil
9.38%
10.00%
registry office data that because the customer does not
5.49% update the data.
5.00%
• Approval limit problem of less than RP. 10.000.000 due to
marketing analysis data that is not optimal.
0.00%
Bad Collectibility Customer's Debt Service Fail Customer Approval Customer Data • Customer capability does not meet Risk Acceptance
Burden Ratio
(DBR) more than
capability does
not meet Risk
financing limit does not
less than Rp accordance with
Criteria (RAC). It is caused that criteria is intended for a
50% Acceptance 10.000.000 civil registry limited segment, namely payroll of civil servant officer in
Criteria (RAC) office
the first stage with a limited amount and a limited tenor
Fig. 5: Pareto Diagram of Rejected Financing Problem • Problems of Debt Burden Ratio (DBR) of more than 50%
Source : Researcher Data (2022) due to strict and less flexible risk acceptance criteria.

Analyze Stage Improve Stages

In the analyze stage, a causal analysis is carried out In the improve stage, researchers and team members
regarding the problems that arise and resulting in a low level determine solutions to fix problems (defects) of online
of liquid financing. The cause-and-effect analysis used in this multipurpose financing that occur through dashboard
study is a fish bone diagram. Cause-and-effect analysis data monitoring, brainstorming with business units, risk units,
were obtained from the results of discussions through Focus operation financing units, digital banking operations units and
Group Discussions (FGD), the results of researcher group of information technology strategy and development.
observations, and interviews with the Group Head. The cause operation financing units, digital banking operations units and
and effect diagram of the rejected financing problem can be group of information technology strategy and development.
seen in Figure 4.6.
From the results of the brainstorming, the action plan or
solution determined by the researcher and the team as shown
in Table IV.

Control Stage
During research, solutions and improvement initiatives
are still in the process of implementation and development.
Therefore, the results of improving the online multipurpose
financing system through mobile banking can only be
monitored through the results of user acceptance test (UAT)
for several development initiatives. From the results of the
UAT, it was concluded that the developed system could run
well in accordance with the established design.

In implementing of this improvement proposal, it is

necessary to update the standardization of policy procedures
and product manuals. The purpose of updating standard
procedure policy is to serve as a guide for the Bank in the
implementation and business processes of online multipurpose
financing in accordance with current conditions.
Fig. 6: Fish Bone Diagram of Rejected Financing Problem
Source : Researcher Data (2022) Changes in procedural policies that support the
improvement of the online multipurpose financing system can
be seen in the following table.

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 Volume 7, Issue 7, July – 2022 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Rejected Financing
Solution Initiatives Follow Up
Problem
SDLC (Software
- Improve the number of Development Life
Expanding segment to Bank X Cycle)
application for online
employees 1. Forum Group
multipurpose financing
Discussion with Project
Team
2. Establish CR,
Bad Collectibility Business Requirement
3. Technology
- Expanding market Develop multipurpose financing top Development
segments up for existing customer 4. SIT
5. UAT
6. RCB
7. PTR
8. Live
SDLC (Software
- Improve IDEB System Improvement of IDEB System
Development Life
Cycle)
1. Forum Group
- Partnership with API Discussion with Project
(Automation Protocol Team
Interface) to access IDEB 2. Establish CR,
Service Fail Business Requirement
in order to avoid Select reliable IDEB vendor that
dependency to Financial has successful rate 90% 3. Technology
Infomation Service System Development
from Indonesia Financial 4. SIT
Authority (OJK SLIK) 5. UAT
6. RCB
7. PTR
8. Live
the customer is notified to
update the data to the Bank
via mobile Banking and
branches via push
notification and whatsapp
blast as well as develop a Enhancement of online SDLC (Software
Customer Data does not Development Life
service where customers multipurpose financing with
accordance with civil registry Cycle)
can update their NPWP updating Tax ID dan ID number in
office 1. Forum Group
(tax ID) or NIK (identity mobile banking
number) data when applying Discussion with Project
for financing via mobile Team
banking and the data will be 2. Establish CR,
updated to the Bank's main Business Requirement Table 5 Change Of Procedure
data 3. Technology Source : Researcher Data (2022)
- Risk Acceptance Criteria Development
relaxation 4. SIT
- Notification of other 5. UAT V. CONCLUSION AND RECOMMENDATION
digital financing 6. RCB
Development of a Decision Engine
recommendation such as 7. PTR
Approval financing limit less to provide the right financing This study describes how to analyze online multipurpose
paylater or other digital 8. Live
than Rp 10.000.000 options if customer can't apply for
product
online multipurpose financing digital financing products through mobile banking to improve
- Extending the choice of digital financing performance through the DMAIC-based Six
online multipurpose
financing period Sigma process improvement method. Bank X's financing
- Risk Acceptance Criteria target from online multipurpose financing contributions is to
Multipurpose Financing Top Up
relaxation acquire regular financing of up to 80% in order to support go
- Expanding new market
segment beside civil
green banking (paperless application), save the service level
Develop centralized payroll system
servant that payroll agreement period and provide a great opportunity to compete
registered in Bank X SDLC (Software with other online financing in the financing market in
- Develop additional Development Life
system that can verify Indonesia.
Increase feature and financing time Cycle)
performance allowance 1. Forum Group
Customer capability does not period
income for customer from Discussion with Project
meet Risk Acceptance
civil servant
At the time of product launch until February 2022, the
Criteria (RAC) Team
- Develop additional 2. Establish CR, number of successful online multipurpose financing
system that can verify all Business Requirement applications was disbursed as much as 65% of the total
customer segment payroll 3. Technology
system in Bank X Development
submissions. This indicates that the effectiveness of online
- Add financing limit to be 4. SIT multipurpose financing can acquire regular financing of 65%
more than Rp 50.000.000 5. UAT
dan add time period of
from the target of 80%.
6. RCB
online multipurpose 7. PTR
financing 8. Live The constraint factors that encountered after the launch
Change DBR to DSR (Debt
Service Ratio) in which of online multipurpose financing products were the high
Customer's Debt Burden Develop the change of DBR to be
Ratio (DBR) more than 50%
total installment only
DSR (50%)
number of rejected financing applications caused by 6 factors
calculated in Bank X with
percentage > 50%
including: bad customer collectibility, service fail (system
constraints), personal data does not match with civil registry
Table 4 Solution And Initiatives office, approval limit was below Rp. 10,000,000, customer
Source : Researcher Data (2022)

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Volume 7, Issue 7, July – 2022 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
capabiity does not meet the risk acceptance criteria, and the REFERENCES
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The researcher's suggestion for the management of Bank

X is to recommend that the results of this research be
submitted as a strategic initiative to be realized in order to
increase the volume of financing and particularly for the online
multipurpose financing customer base and generally for active
users of mobile banking.

For further research, the researcher recommends to

continue the research on the results of monitoring at the
"control" stage of online multipurpose financing product after
improvement with the DMAIC-based six sigma method so that
rejected financing applications can decrease significantly
compared to before improvement period.

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