BTN Builds Loan Factory, Prepares Faster and More Controlled Credit Growth Machine

JAKARTA - PT Bank Tabungan Negara (Persero) Tbk (BTN) strengthens its credit growth engine through the construction of a Loan Factory, which is designed to accelerate processes, increase capacity, and maintain portfolio quality in a more controlled manner.

This initiative is part of BTN's ongoing transformation of its credit business process from a previously distributed model to an integrated and process-based model, allowing credit disbursement to be carried out faster, consistently, and scalable across the network.

BTN President Director Nixon LP Napitupulu said the construction of the Loan Factory is part of BTN's transformation roadmap which has started since 2019, in line with the need to manage large-scale credit volumes with uniform standards.

"BTN is about 1,000 mortgage applications a day. If you rely on the way each person works, it is dangerous. So on this scale, the process must be standardized and run with the same system," said Nixon, Monday, April 13.

He added that standardization is the key for BTN to ensure the quality of services and products remains consistent throughout Indonesia.

"If you want to be a big company, the process must be the same. The requirements are the same, the way it works is the same, the results must also be consistent," he said.

Until now, the BTN consumer credit process has been decentralized at the branch, before being improved through the establishment of the Regional Loan Processing Center (RLPC) since 2019. This transformation has proven to improve the quality of the process and standardization, as well as reduce various potential deviations in the credit process.

Through Loan Factory, BTN integrates all of these processes into a centralized, process-based model, from data input, verification, analysis, to credit approval and disbursement. This approach allows for the specialization of functions at each stage, so that the process becomes more efficient, accurate, and consistent.

Currently, BTN Loan Factory is also implementing a decision engine in the credit scoring process to accelerate credit analysis and approval, as well as strengthening the standardization of processes, decision quality, and more consistent governance.

Along with this implementation, BTN also targets an acceleration of the credit process from around 6 working days to be shorter, in line with the strengthening of processes and integration through Loan Factory.

According to Nixon, Loan Factory has a strategic role as a credit growth engine, as well as a risk quality guard, and a driver of operational efficiency improvement through process standardization.

"If it only grows without quality, it is not acceptable. But if the quality is good without growth, it is also not enough," he said.

In terms of operations, BTN Operations Director I Nyoman Sugiri Yasa said Loan Factory answered various challenges of inefficient processes that previously occurred due to the scattered work model.

"With Loan Factory, the process that was previously scattered and cross-linked between work units is now more structured and integrated. This makes the process more efficient, easy to monitor, and improves the quality of document governance and underwriting," said Nyoman.

He added that the integration of this process also strengthens the end-to-end journey of credit services, from initiation to disbursement and document management.

Meanwhile, BTN Risk Management Director Setiyo Wibowo explained that this transformation is part of a long journey of improving BTN's credit process which continues to evolve in line with technological developments.

"From the previous decentralized process, then regionalization, to now being a process-based centralized process, we ensure that the quality of the process continues to improve with more consistent standards," said Setiyo.

He added that Loan Factory allows BTN to obtain economic of scale as well as strengthen the quality of the process through a more structured and technology-based approach.

"With this approach, we encourage a more accurate, effective, and fast process, while strengthening controls to minimize risks," he explained.

In addition, BTN also continues to strengthen its digital capabilities through the use of technology, including the development of automation and artificial intelligence (AI) in the input, verification, and analysis of credit data.

The transformation of Loan Factory is an important part of strengthening BTN's operational foundation to support the increase in credit distribution capacity nationwide, in line with the growing need for housing financing.

"Our target is clear, growth must increase, but quality must also be maintained. That's what we are building through this Loan Factory," concluded Nixon.