Business Process Improvement and Capital Budgeting Analysis to Develop the Digitalization Process of Loan / Financing in Bank Sumsel Babel

PT Bank Pembangunan Daerah Sumatera Selatan dan Bangka Belitung (brand name: Bank Sumsel Babel) is one of the regional state-owned enterprises (SOEs) engaged in the banking sector. As a local company with a great purpose, Bank Sumsel Babel has a big responsibility to support all industries in the region province of South Sumatera and the Bangka Belitung Islands. This study examines the downward trends in credit and financing activity over the previous five years, particularly in working capital and investment credit at Babel Sumsel Babel branches. These two credits assess how successful regional banks are at boosting the local economy. On the other hand, the Bank has seen a decrease in market share in its multi-purpose credit products to civil servants in the South Sumatra and Bangka Belitung islands, where this credit is the primary source of income for Bank Sumsel Babel. This research utilizes qualitative information to determine the root cause and improve business processes by using the digital revolution of credit and financing to speed up the process and increase microfinance in Bank Sumsel Babel. Furthermore, the capital budgeting analysis to build the digitalization process will be calculated in this study to determine whether the investment is feasible. Based on the findings of this study, it is possible to conclude that Bank Sumsel Babel can use digitalization as a process improvement to secure its niche market and increase lending activities. Finally, this study makes recommendations for internal management on implementing the credit and lending digitalization process.