ABSTRACT
Banks function as the intermediary that collects funds from the public and channels it back in the form of credit loans to society. One credit segment that plays an important role in developing Small and Medium Enterprises (SMEs) is small segment credit. Bank ABC is a state-owned enterprise in Indonesia, and the management repeatedly changes the number of credit officers involved in processing small segment credit applications from two officers to only one officer. The objective of this study is to analyze which business process is better and propose ways to improve the process. We conduct interviews to gather primary data, and collect secondary data related to both business processes. We use flowcharts to compare both processes, and use three parameters (application processing time, percentage of realized target of debit balance, and non-performing loans) to determine which is the better process. The findings show that the current credit process (with one credit officer) has a higher realized target of debit balance and a shorter processing time than the previously applied process (with two credit officers). However, this results in a higher percentage of non-performing loans and, thus, we propose improvements by simplifying the business process, reorganizing the small credit segment division, and simplifying the credit analysis forms. Keywords: business process analysis; small segment credit; bank.
