Document Management in Ultra-Micro Financing Business: A Case Study at Bank Arisan Sharia
Purpose – The growing digital transformation of the financial services sector has made the differentiation between Fintech and traditional Bank more important. Fintech businesses, renowned for their creative application of technology, work in a digitally first environment, shunning paper records in favor of sophisticated digital workflows. This creates a contradiction in document management procedures since conventional banks have traditionally relied on physical documents for their financing operations. The purpose of this study is to investigate the benefits and drawbacks of switching from physical to digital document management in traditional banks. Design/methodology/approach – The study aims to comprehend the rationale behind the integration of digital technologies for document management in conventional banks (ultra-micro financing banks), while also scrutinizing the advantages and obstacles that arise from this practice. Using a qualitative research methodology, the study will analyze data using the SWOT analysis and TOWS Matrix method and rely on interviews with heads, leads, and senior experts. Findings – By assisting traditional banks in navigating the obstacles of digital transformation and maintaining their competitiveness in the quickly changing financial services sector, the study's conclusions will help shape recommendations and best practices for effective document management. Banks can optimize their document management practices and enhance their overall operational efficiency by informed decision-making based on their understanding of the benefits and drawbacks of using physical documents versus digital document management. The study's findings indicate that PT Bank Arisan Sharia's document management system still requires enhancement. This associated bank will work on projects including digitizing paper documents into digital ones, lowering the amount of physical documents, and implementing biometrics. Practical implications – Financial institutions that operate in micro-enterprise financing with a similar target segment can easily use this analysis to determine a more appropriate strategy regarding document management. Originality/value – With the results of an analysis of the use of document management systems in traditional banks, like Bank Arisan Sharia, which serves underprivileged customers, this paper makes a unique contribution to the field. This type of customer has its own uniqueness, is may not be technologically literate, and still prefers physical paper records because they provide concrete evidence of their transactions. Therefore, this paper will provide a different view of the financial business that exists today, especially fintech with its technological advances.