Streamlining Salary Loan Transactions: A process Efficiency Study of a Regional Banking Institution
DOI:
https://doi.org/10.67167/vertex.590Keywords:
salary loan processing, technological systems support, interdepartmental coordination mechanisms, process efficiency, regional banking institutionAbstract
This study examined the efficiency of the salary loan process at DBP Dumaguete by identifying process deficiencies and assessing the contributions of technological systems and interdepartmental coordination to the efficient handling of salary loan applications. The research sought to determine how these factors influence service delivery and overall process performance within the bank. A descriptive-correlational research design was employed. Data were collected from 123 salary loan clients selected through simple random sampling and 30 DBP employees directly involved in loan processing chosen through purposive sampling. Expert-validated survey questionnaires were used as the primary data-gathering instruments. Statistical tools such as the mean, Shapiro-Wilk test of normality, and Spearman’s rank-order correlation were utilized to analyze the data.The findings revealed that both clients and employees consistently perceived the salary loan process as efficient across all measured dimensions. Technological systems and interdepartmental coordination were viewed as important contributors to timely and effective loan processing. However, the study also identified the continued occurrence of minor delays, document resubmissions, and process bottlenecks, indicating opportunities for further improvement. These findings suggest that while existing technologies support operational efficiency, technology alone is insufficient to ensure optimal performance. Greater digital integration, enhanced validation mechanisms, seamless system interoperability, and increased automation are needed to further streamline processes and improve client satisfaction.The study underscores the importance of continuous innovation in maintaining fast, reliable, and trustworthy loan services. Furthermore, the results support the applicability of Lean Theory and Scientific Management Theory, emphasizing continuous improvement, process optimization, and productivity enhancement in the banking sector.
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