BTN Builds Loan Factory to Prepare Credit Growth Engine
PT Bank Tabungan Negara (Persero) Tbk, or BTN, is strengthening its credit growth engine through the construction of a Loan Factory, designed to accelerate processes, increase capacity, and maintain portfolio quality in a more controlled manner.
This initiative is part of BTN’s ongoing business process transformation for credit, shifting from a previously decentralised branch-based model to an integrated, process-based one, enabling faster, more consistent, and measurable credit disbursement across its entire network.
BTN President Director Nixon LP Napitupulu stated that the Loan Factory construction is part of BTN’s transformation roadmap that began in 2019, in line with the need to manage large-scale credit volumes with uniform standards.
“BTN handles around 1,000 mortgage applications per day. Relying on individual working methods is dangerous. In this scale, processes must be standardised and run with the same system,” said Nixon.
He added that standardisation is key for BTN to ensure consistent service and product quality across Indonesia. “To become a large company, processes must be the same. Requirements are the same, working methods are the same, and results must also be consistent,” he emphasised.
Previously, BTN’s consumer credit processes were decentralised at branches, before being upgraded through the establishment of Regional Loan Processing Centres (RLPCs) since 2019. This transformation has proven to improve process quality and standardisation, while reducing various potential deviations in the credit process.
Through the Loan Factory, BTN integrates all these processes into a single centralised, process-based model, from data input, verification, analysis, to approval and disbursement of credit. This approach allows for functional specialisation at each stage, making the process more efficient, accurate, and consistent.
Currently, BTN’s Loan Factory also implements a decision engine in the credit scoring process to accelerate analysis and credit approval, while strengthening process standardisation, decision quality, and more consistent governance.
Along with this implementation, BTN targets to shorten credit processing time from around six working days to a shorter period, in line with process strengthening and integration through the Loan Factory.
According to Nixon, the Loan Factory plays a strategic role as a credit growth engine, as well as a guardian of risk quality, and a driver of operational efficiency improvement through process standardisation. “Growth without quality is not acceptable. But quality without growth is also not enough,” he said.
From an operational perspective, BTN Operations Director I Nyoman Sugiri Yasa stated that the Loan Factory addresses various process inefficiencies that previously occurred due to the dispersed working model. “With the Loan Factory, processes that were previously scattered and overlapping between work units are now more structured and integrated. This makes the process more efficient, easier to monitor, and improves document governance and underwriting quality,” said Nyoman.
He added that this process integration also strengthens the end-to-end credit service journey, from initiation to disbursement and document management.
BTN Risk Management Director Setiyo Wibowo explained that this transformation is part of BTN’s long journey of credit process improvement that continues to evolve following technological developments.
“From previously decentralised processes, then regionalisation, to now becoming centralised and process-based, we ensure that process quality continues to improve with more consistent standards,” said Setiyo.
He added that the Loan Factory enables BTN to achieve economies of scale while strengthening process quality through a more structured and technology-based approach. “With this approach, we encourage more accurate, effective, and fast processes, while strengthening controls to minimise risks,” he explained.
In addition, BTN continues to strengthen its digital capabilities through the utilisation of technology, including the development of automation and artificial intelligence (AI) in credit data input, verification, and analysis processes.
The Loan Factory transformation becomes an important part in strengthening BTN’s operational foundation to support increased national credit disbursement capacity, in line with the growing need for housing financing.