Digitalisation and Relationship Banking in Managing Non-Performing Loans: A Case Study of BPR Karyajatnika Sadaya

Abstract

This study examines how a hybrid strategy combining digital credit classification and relationship banking influences the management of non-performing loans (NPL) at BPR Karyajatnika Sadaya, Setiabudi branch. Using a qualitative case-study approach, data were collected through semi-structured interviews with four stakeholders (a frontline officer, a credit analyst, a branch manager, and a defaulting borrower) and analysis of internal credit records and PSAK 71-based reports covering 2019–2024. Data were analysed using Miles & Huberman’s framework (data reduction, display, conclusion drawing) and thematic coding. Results indicate that (1) digital collectability classification improved early detection of risky accounts, (2) multi-layer verification reduced approval errors and contributed to a decrease in new NPL cases in 2023, and (3) relationship banking remains essential to restructure loans for MSMEs. The study contributes empirically by demonstrating that a staged digitalisation programme, complemented by strengthened human capacity, can reduce NPL while maintaining LDR stability. Implications for BPRs and regulators are discussed.