Strategy To Improve People’s Business Credit (KUR) At PT Bank Sumut KC Lima Puluh

Abstract

This study aims to analyze the factors influencing the effectiveness of the People’s Business Credit (KUR) distribution and to formulate strategies for increasing the number of KUR recipients at PT Bank Sumut KC Lima Puluh. The research employs a qualitative descriptive approach, collecting data through semi‑structured interviews, direct observation, and document review. Data analysis follows the Miles and Huberman interactive model, comprising data reduction, presentation, and conclusion drawing. Findings reveal that internal factors, such as human resource quality and competence, application procedure efficiency, and digital infrastructure utilization, critically determine KUR performance. Key external factors include government regulations, macroeconomic conditions, SME financial literacy, and competition from non‑bank financial institutions. SWOT analysis identifies strengths (Bank Sumut’s reputation, subsidized interest rates, microcredit expertise), weaknesses (complex application procedures, limited promotional resources), opportunities (stable local SME growth, digital technology advances, government support), and threats (fintech competition, regulatory changes, global economic uncertainty). Based on SWOT, SO, WO, ST, and WT strategies are formulated, including simplification and digitization of KUR applications; enhancement of human resources and expansion of outreach; leveraging subsidized interest rates to support SME expansion; and providing targeted debtor assistance. Implementing these strategies is expected to accelerate distribution, broaden SME coverage, and mitigate credit risk.