The ILO supports a rural bank in Central Java in its digital transformation, shifting from manual operations to fully digital processes.
With the newly installed Loan Origination System (LOS), a digital tool that automates the entire credit application process from survey to disbursement, Rural Bank (BPR) Nusamba Cepiring in Central Java has significantly improved its operations. The system now supports six branches across two regencies, Kendal and Semarang, serving over 2,600 customers.
Prior to this digital transformation, BPR Nusamba Cepiring relied on time-consuming manual processes. Everything from field surveys and data input on a shared computer to credit proposals and the compilation of physical documents was done manually, creating daily inefficiencies.
“It was common for staff to stay late just to input data because the system was slow and documents often remained at the branch, delaying everything,” said Agus Setiawan, a representative and internal trainer at BPR Nusamba Cepiring.
The slow, lengthy process previously affected not only staff but also customers. Muslichatun, a small food business owner, recalled waiting up to five days just to access financing.
That, however, is now history. Since the implementation of the LOS, supported by the ILO’s Promoting SMEs through Access to Digital Financial Services – Phase 2 (Promise II Impact) project and funded by the Swiss State Secretariat for Economic Affairs (SECO) in late 2024, BPR Nusamba Cepiring has undergone a complete transformation from manual operations to digital processes.
This shift has not only enhanced service delivery but also fostered a healthier and more inclusive workplace. Manual tasks have been reduced, overtime has declined, and staff are more motivated to meet their goals. Even senior employees, initially hesitant to embrace the new technology, have successfully adapted through team support and dedicated training sessions.
BPR Nusamba Cepiring now serves its clients with greater efficiency, supported by a work environment in which employees experience a renewed sense of purpose.
“We have a new work culture now,” said Andin Syamsul Rizal, Head of BPR Nusamba Cepiring Main Branch. “The system makes everyone more disciplined and detail-oriented. We all also speak the same language: data.”
Similarly, Agus added that account officers now have better visibility into each stage of the loan process. “Before, they often did not know exactly where an application stood, causing delays and making it difficult to respond to customer questions,” he said. “Now, the system lets us monitor progress in real time, so account officers can provide clear, accurate updates and manage expectations with greater confidence.”
To ensure sustainable transformation, beyond digital training on LOS, the ILO’s Promise II Impact project has provided 40 tablets to facilitate digital data entry in the field. This has reduced redundant paperwork and eliminated long trips back to the office, fostering a less stressful, more collaborative work culture and enabling faster decision-making.
" Djauhari Sitorus of the ILO’s Promise II Impact project highlighted BPR Nusamba Cepiring’s digital shift as a model for expanding financial access, empowering businesses and building resilient, inclusive local economies. "
“The ILO is pleased to witness the transformation from heavily relying on manual labour to embracing digitalization, which contributes to advancing the ILO’s vision of decent work for all,” he said.
The improved operations have also delivered tangible business outcomes. For Muslichatun, it now takes just one or two days to secure her 35 million Rupiah business loan. “It is faster, with less paperwork and clearer communication,” she said, ready to expand her business.
Muslichatun, a home-industry entrepreneur and BPR Nusamba Cepiring client, now gets loans faster—fueling her growing snack food business.
Meanwhile, Taubat, a small retailer who received a loan during the pandemic, has since grown his business to 11 market stalls, employing more than 40 people. “The speed and clarity of the process gave me the confidence to invest more,” he said with conviction.
Sumber : https://www.ilo.org/resource/article/paper-progress-digital-transformation-empowers-rural-finance
