Since its inception as Sharia Business Unit, Bank has embraced and reached out to the unbanked segment, namely the productive but underprivileged segment. Bank has long considered document management as one of its many responsibilities. Bank has implemented several programs related to reducing the use of hardcopy documents in activities related to its ultra-micro financing business through the digitization process:

• Mobile applications can accommodate the routine tasks of Officers Bank through digitization. The processes for applying for financing, disbursing funds, and making installment payments are all covered by this application, along with certain other tasks that required papers in the past. 

• Automating Bank transactions overall for all customers, automating routine transactions during collecting data and optimizing other transaction processes.

• Other process automation/improvement and mainstreaming at the head office include the management and monitoring of the cash business branch and accounting instructions to operation branch.

Tablets have been utilized successfully by all Bank officers who provide customer service for ultra-micro business funding to reduce the use of paper. The digitization process may make it more convenient for Bank officers to get access to the tools and features they need to serve clients swiftly, safely, and conveniently. This, in turn, may make it more comfortable and convenient for customers to use Bank’s financial services. The operational activities of Bank officers are made more effective in terms of time and paper usage by digitizing this procedure. However, this slowly changing digitization process does not make the ultra-micro financing business process not require hardcopy documents at all, for example there are still some documents that require the customer's wet signature.

Establishing a document management system and collaborating with vendors to handle physical documents are the two approaches the Bank takes to document management. Using the SWOT and TOWS Matrix analyses, this paper will examine the application of both techniques.

Business Issue

Examining the efficacy of the bank's system management documents in the insurance claim process is the business problem. The bank continues to collect, store, and retrieve documents from vendors while processing The National Economic Recovery Program Generation 1 and 2 (PEN Gen 1 and 2) insurance claims. There are definitely a lot of disadvantages to using vendors, such as the lack of a low cost, the risk of document loss, and errors in document registration. Because bank branches and vendor warehouses may be located on separate islands, the process of gathering documents through vendors can be time-consuming. Failures on the part of vendors may result in delays in processing claims, which may result in financial losses or possible problems with compliance if important data is lost. The bank may overcome the difficulties in processing insurance claims and raise the general effectiveness of its document management procedures by putting in place a document management system. In order for the Bank to develop more effective document management strategies, the usage of the Document Management System (DOMA) will be examined.

Research Objective, Scope, and Limitation

The purpose of this study is to evaluate simpler, less expensive, but still secure alternative document management procedures and to pinpoint the shortcomings of digital document storage in order to help future research identify countermeasures.

This research is limited to documents in ultra-micro financing business and limited by the sample number of documents examined by Quality Assurance financing in January until June 2023 and claim insurance The National Economic Recovery Program Generation 1 and 2 (PEN Gen 1 and 2).

Ultra-Micro Financing for Pre-Prosperous Customers

It is now widely acknowledged that micro, small, and medium-sized enterprises, or MSME's, play a crucial role in the Indonesian economy. In 2020, small and medium-sized enterprises will account for approximately 99% of the Indonesian economy, according to data from the Ministry of Cooperatives. 97% of Indonesian workers are employed by MSMEs, which account for about 60% of the country's GDP. Furthermore, compared to large corporations, the MSME sector has demonstrated its resilience in the face of numerous crises that have affected Indonesia, including the multifaceted crisis of 1988, the global crisis of 2011, and the current COVID-19 pandemic crisis. Because MSMEs are adaptable and resilient to changes in the economy, their presence in Indonesia maintains economic stability even in the face of a downturn. [1].

There are drawbacks to ultra-micro financing for pre-prosperous customers as well, like low financial literacy, a reliance on cash, and restricted access to digital goods and services. Financial institutions need to help these people better understand and use financial services by offering financial education and training in order to address these issues. Furthermore, encouraging digital financial inclusion can make it easier for these people to access a greater variety of financial services and products, which will enhance their general financial resilience and management

Digital Document Management

Businesses are becoming more and more concerned with carefully managing their private information to ensure that it is handled appropriately and to make it more helpful for their everyday operations. In the meantime, managing and effectively using the information is more difficult due to the quantity and variety of papers. Two key features are intended to be offered by the document management system. The first is the capacity for users to quickly obtain the most up-to-date information from any location and on any device. The other is assistance with effective document sharing and teamwork for collaborative working environments. [2]

Before deciding to embrace digital document management, a company must answer a number of questions. Is filing documents digitally sufficient? Or are additional paper archives to some extent required. All forms of digital documents, including those created by the organization itself using electronic word processing and other IT technologies, paper documents that have been scanned into digital form, and documents that have been received in digital format, are covered by the recommendations. 

Table 1. Recommendations of digital document management (Professor, 2000).

SWOT Analysis

[3] states that the SWOT analysis framework enables leaders to extract strategic implications by combining insights from an analysis of the company's external opportunities (O) and threats (T) with those from an internal analysis of the company's strengths (S) and weaknesses (W). An organization must weigh the benefits and drawbacks of strategic planning before deciding on a course of action. When such factors are considered and implemented, a suitable decision-making process generates what the organization might expect as a result. When putting a plan or initiative into action, the SWOT Analysis—which stands for Strengths, Weakness, Opportunities, and Threats—is a well-known strategic planning tool for organizational development with likely causes and effects [4].

Conducting a SWOT analysis of enterprise systems is a common practice among business researchers working in large organizations. Many organizations use SWOT analysis for quality assurance and strategic planning as they draft laws and policies. The SWOT activities in the context of digital ecosystems require careful consideration, especially when developing and promoting novel approaches for various industry scenarios within the framework of integrated project management, while also taking complex business operations into account. Information solutions might not offer options, failing to prioritize issues and offer substitutes [5]

An organization's external opportunities and threats are analyzed, along with its internal strengths and weaknesses, using a SWOT analysis. Resource, capability, core competency, and competitive advantage that are intrinsic to the organization are identified through internal analysis. Through an examination of competitors' resources, industry conditions, and overall environment, the external analysis pinpoints market opportunities and threats. An organization's knowledge of its internal and external environments is what a SWOT analysis is used for, and it helps it to formulate strategy accordingly [6]

Learned et al. (1969) first described SWOT analysis as a critical instrument for addressing complicated strategic issues by reducing the amount of information to improve decision making. This will assist in concentrating on the positives, minimizing the negatives, and maximizing the opportunities presented by defeating the threats. If SWOT analysis isn't expanded to include TOWS, where strengths are used to seize opportunities and fend off threats, weaknesses are reduced by seizing opportunities, and threats and weaknesses are avoided, the exercise is pointless [7]. 

TOWS Matrix

As an extension of SWOT for creating alternative strategies, Weihrich (1982) created TOWS. With the help of the TOWS matrix, strategies can be created that combine elements related to external opportunities (or threats) and internal strengths (or weaknesses) in a logical manner. Strength-Opportunities (SO), Strength-Threats (ST), Weaknesses-Opportunities (WO), and Weaknesses-Threats (WT) are the four conceptually separate strategic groups identified by the TOWS matrix for developing alternative strategies. In the best-case scenario, the SO strategies leverage internal strengths to seize external opportunities, while the WO strategies try to minimize internal weaknesses by seizing external opportunities.

In the best-case scenario, the SO strategies leverage internal strengths to seize external opportunities, while the WO strategies try to minimize internal weaknesses by seizing external opportunities. On the other hand, WT strategies are defensive measures meant to lessen both internal weaknesses and external threats, whereas ST strategies involve using strengths to prevent or lessen the effects of external threats. The influence of internal and external factors that are prioritized and incorporated into alternative strategies is the main benefit of this approach. The primary drawback of the TOWS matrix is that some combinations—like SW or OT—are not taken into account [7]

Table 2. TOWS Strategic Alternatives Matrix. Source: H. Weihrich, ‘The TOWS Matrix-A Tool for Situational Analysis’

Data Collection Method

The methodical process of gathering and assessing data on variables of interest in order to address research questions, test theories, and assess findings is known as data collection. To assess the state of document management, both primary and secondary data will be gathered for this study. The in-depth interview will provide primary data for collection. The Quality Assurance (QA) work unit report on document management and the document completeness monitoring report on the insurance claim document management system will be the sources of secondary data collection in the interim.

The optimal participant range for qualitative research methods is five to fifty, depending on a number of factors including the quality of the data, the study's scope, and the quantity of relevant information. Taking these factors into account, respondents who are qualified to take part in this research include heads, leads, and senior experts who are already familiar with the challenges associated with storing both digital and physical documents. The selection standards for the participants in the in-depth interview are: the person in charge of each department or division within the bank, whether they are the head, lead, or project manager, must have been there for at least two years, worked on projects involving document management, or regularly verified that both digitally and physically stored documents were complete. 

Table 3. List of Respondent in Depth Interview 

Data Analysis Method

Data collection both from primary data (results from interviews with experts) and secondary data (based on reports from the QA work unit and reports from management document systems, and other reports) will be analyzed using SWOT Analysis and a TOWS Matrix will be created. The Strengths, Weaknesses, Opportunities, and Threats (SWOT) of a project are identified and analyzed using this strategic planning tool. By identifying internal and external factors that may have an impact on a project's performance, SWOT analysis assists them in developing strategies to mitigate those effects. Based on the interactions between internal and external factors, the TOWS matrix, an extension of the SWOT analysis framework, aids the Bank in identifying strategic options. Weaknesses, Opportunities, Threats, and Strengths make up the TOWS matrix. With the aid of the TOWS matrix, banks can create strategies that will help them accomplish their objectives by balancing their internal strengths and weaknesses with external opportunities and threats. The primary distinction between the TOWS matrix and SWOT analysis is that the latter is an action tool, whereas the former is a planning tool. SWOT analysis lists all of the factors—Strengths, Weaknesses, Opportunities, and Threats—in a point form, whereas the TOWS matrix shows how these factors relate to one another and helps choose strategies based on those relationships. The TOWS matrix can assist banks in mitigating risks, capitalizing on opportunities, optimizing strengths, and eliminating weaknesses. Banks can also benefit from using the TOWS matrix to organize their thoughts so that all strategic perspectives are covered and corresponding action items are generated.

Table 4. List in Depth Interview Questions.

Document Management Using Vendor

The Service Level Agreement (SLA) is the average time it takes for vendors to complete their work activities except for Palembang and Bali branch vendors. Palembang branch takes longer to complete its work because it is an area with a high crime rate so there is no overtime work. The reason the Bali branch takes longer, which is about a month to complete the re-boxing process to data entry, is because the location of the vendor branch is different from the Bank branch, for example: Bank branch documents located in Sumba will be stored at the Bali branch vendor. The shipment of documents on the different islands usually uses shipping by sea.

Table 5. Services Level of Agreement (SLA) Vendor Document

For each activity, the Bank will be charged a fee, consisting of document pickup, re-boxing, data entry, scanning costs, and storage documents. The following table represents the amount of document management costs in the PEN Gen 1 period using vendors.

Table 6. Cost of vendor work activities in the PEN Gen 1 period

The National Economic Recovery Program Generation 1 and 2 (PEN Gen 1 and 2) is a series of activities for national economic recovery which is part of the state financial policy implemented by the Government to accelerate the handling of the COVID pandemic. Banks can submit claims PEN Gen 1 if customers with financing disbursements between August 2020 and November 2021, are unable to fulfill their obligations in accordance with the financing agreement. Some documents that must be fulfilled in the process of submitting a PEN Gen 1 claim are fulfilled by the vendor based on a scanned document request from the Bank.

From the table above, it can be seen that the cost of pickup documents is the component with the largest amount of costs. Document collections from Palembang, Medan, Kalimantan branches occupy the most expensive areas with an average pickup fee of 65,000,000 IDR/branch. The farthest distance between the Bank's branch and the vendor's branch is 1,800 km by road. 

Evaluation of vendor performance is carried out by the inspection work unit, namely the Bank's Quality Assurance (QA). after the project is completed. The following data is the result of the QA inspection report on vendor work in document management

Table 7. Error rate vendor activities

The error generally lies in the error in entering the Bank customer's ID card data entry. The physical document is the customer's spouse's ID card but the vendor inputs it into the system as the Bank customer's ID card.

Document Management System (DOMA)

The data in the table below is a Quality Assurance (QA) report related to checking the completeness of documents in the System Management Document (DOMA)

Table 8. QA Report Related DOMA

The incompleteness of document storage in DOMA is still quite high, especially for the upload process that is done manually. Even findings of incompleteness for mandatory documents automatically stored in DOMA still exist. This is because when the mandatory documents are uploaded through the front end system during the financing application process, it is not equipped with technology to recognize the type of document or the minimum filling of a document. It is possible that the results of uploading documents are unclear / blurry, cropped, or filling in incomplete documents.

Figure 1. Completeness Documents in DOMA - Claim PEN Gen 2

Banks can submit claims PEN Gen 2 if customers with financing disbursements between March and November 2022, are unable to fulfill their obligations in accordance with the financing agreement. Some documents that must be fulfilled in the process of submitting a PEN Gen 2 claim are taken from the Document Management System (DOMA). Unfortunately, the incompleteness of the prerequisite documents for PEN Gen 2 claims that have been stored in DOMA still reaches a fairly high number of 46%.

Table 9. Total Claims Paid

The reason why PEN Gen 2 claim payments are less than PEN Gen 1 apart from the high level of incompleteness of claim prerequisite documents from DOMA, is also due to the smaller number of customers registered and many customer financing in that period has been paid off

SWOT Analysis

1. Document Management using Vendor

Figure 2. SWOT Analysis for Document Management using Vendor

Strengths

1. Physical documents are well stored

The Bank's physical documents stored at the vendor will be properly maintained in accordance with the agreed PKS (Cooperation Agreement).

• Fumigation and pest & rodent control are carried out to prevent periodic damage to archives/documents

• Vendors are required to maintain and maintain documents so as to avoid everything that can be dangerous, disrupt the physical security of archives / documents such as theft / loss of archives, flooding, fire, eaten by termites, rats, paper lice, environmental influences, and etc.

The security and legal validity of physical documents will be protected if they are stored properly. Because they guarantee the legal validity, security, and auditability of records—all highly important for regulatory compliance—paper documents are frequently seen as more trustworthy than digital ones

1. The scanned documents are clear and intact

Scanned documents from vendors are clear and according to standards because they are listed in PKS (Cooperation Agreement)

1. Have higher Bank customer trust

Certain consumers, particularly underprivileged customers, still favor hard copy records because they offer verifiable evidence of their transactions, enhancing customer satisfaction and trust

Weaknesses

1. Time Consume

It takes quite a long time from the pickup document process until the document can be sent a scan for claim submission.

1. Inefficiency

There are costs that must be paid by the Bank to the vendor from the pickup process to sending scanned claim documents, including the cost that must be incurred per month to store the Bank's physical documents in the vendor's warehouse.

Opportunities

1. Digital Transformation

There are numerous opportunities for operational improvement when switching to electronic document management systems because they can improve customer experiences, streamline workflows, and improve data analysis.

1. Cost Reduction

Putting in place digital document management systems can result in savings on paper, ink/toner, physical file storage, and administration.

Threats

1. Damage or missing document

Documents may be lost or damaged during the transit from the bank branch to the vendor's warehouse (for example, they may get wet from rain).

1. Legacy System and Infrastructure

The smooth transition to digital solutions may be threatened by the existence of legacy systems and linked paper-based processes, which could result in possible operational difficulties and higher expenses

1. Document Management System (DOMA)

Figure 3. SWOT Analysis for Document Management System

Strengths

1. Efficiency

Bank can reduce the time and effort needed to manage physical documents by using document management systems to help them manage their documents more effectively.

1. Cost Saving

Document management systems can result in significant cost savings for Bank by reducing expenses related to the printing, distribution, and storage of physical documents.

1. Disaster Recovery

From 2020 to 2022, four bank branches were affected by natural disasters. The physical document becomes distorted as a result. The specified data can be prevented from being lost by documents kept in the Document Management System (DOMA).

1. Security

To prevent unwanted access to sensitive data, document management systems can offer enhanced security features like audit trails, encryption, and access controls.

Weaknesses

1. Technical Challenges

Technical difficulties can arise when implementing and maintaining a document management system. As of right now, the document management system (DOMA) lacks technologies to check/verified documents to make sure they are stored in compliance with the rules.

1. Integration Challenges

It can be difficult to integrate document management systems with current workflows and systems, which could cause operational disruptions.

Opportunities

Digital Transformation

The Document Management System (DOMA) currently still needs improvement to create an efficient but still secure process.

Threats

1. Data Breaches

Data breaches may occur in document management systems, potentially resulting in the loss of private information and harm to one's reputation.

1. Regulatory Compliance

   1. TOWS Matrix

A threat to regulatory compliance can arise from a reluctance to embrace digital solutions and lessen reliance on physical documents. These challenges could make it difficult to comply with changing regulations and document retention requirements

1. Document Management using Vendor

Figure 4. TOWS Matrix for Document Management using Vendor

There are several strategies generated from the TOWS Matrix, but the most important strategy is the digitization process. Changing physical documents to digital can provide several benefits such as cost savings, better data storage and analysis

Document Management System (DOMA)

Figure 5. TOWS Matrix for Document Management System

The digital transformation process using the Document Management System (DOMA) can provide many benefits but things that become obstacles in the implementation process must be immediately found a way out, for example: technology for document verification or user interfaced that is friendly so that it is easy to use.

The initial goal of the Document Management System was to make the claim submission process simpler. However, it later evolved into a location to digitally store and retrieve documents required for internal and external audits, resolving customer complaints, and other purposes. This is due to the fact that retrieving documents from the Document Management System (DOMA) is more efficient and less expensive than asking vendors to scan documents. 

Several improvements are still needed for the Document Management System (DOMA) in order to accommodate these changes in purpose. One such improvement is the installation of OCR, which checks documents for accuracy. The transition from paper to digital documents is also a corrective measure for the issue of documents' incompleteness, which persists despite the Document Management Systems (DOMA) requirements.

The Bank's cooperation with vendors related to document management is still required as long as the Bank still uses physical documents. However, some things can be done to save costs such as changing the document retrieval period.

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