Branchless Banking: Service Innovation Through Additive Models and Transformational Models at Bank Syariah Indonesia

The presence of digital banks currently provides new challenges for conventional banks. Bank operations are required to adapt to technological developments. If the customer cannot follow it, the bank will be abandoned by the customer. The purpose of this study is to explore the innovations made by Indonesian Sharia Banks in dealing with digital bank attacks. Digital services through Additive models and transformational models have been carried out, but the results are not optimal. This study uses interview data sourced from managers and frontliners of Indonesian Sharia Banks. This research approach uses a qualitative method with a case study strategy. The results of this study indicate that in optimizing branchless banking, Indonesian Sharia Banks provides account opening services through mobile banking. Another finding is that Indonesian Islamic Banks use the Gardening Strategy. The recommendation from this research is to improve branchless banking services through BSI Smart.


INTRODUCTION
Branchless banking is a form of action to reduce public dependence on physical bank offices, by prioritizing the development of financial facilities where later the public and other businesses can carry out transactions every day through retail shops that act as bank agents. In the use of digitalization of technology as wellmobile banking. Almost all banks in Indonesia, both conventional banks and Islamic banks, have digital programs in Indonesia which are often referred to as mobile banking. (Fetria Eka Yudiana, 2018) The financial services authority revealed that there was a significant spike in usagemobile banking and internet banking in Indonesia, this increase can be seen from 2016 to August 2021 where an increase in the usemobile banking and internet banking increased by 300%, with details of a 50% increase in internet banking branchless banking marketing to the community unbanked will be faster. (Anggie Ariesta, 2021).
As well as research results Kartika Andiani et al stated that in carrying out the cooperation carried out by BAZNAS, a strategy had to be carried out, namely by setting up an integration system and system IT for smooth cooperation with banks. In general, both conventional banks, sharia and non-bank financial institutions, of course, have a strategy to market or notify customers of the latest banking programs, one of which is introducing mobile banking or a kind of clever behavior that aims to make it easier for customers to make transactions and open accounts through smartphone or retail store. (Kartika Andiani, 2018) However, until now, Indonesian Islamic banks, including the Jepara sub-branch office, have not been able to socialize the existence of smart agents and have not been able to realize a strategy which can expand market share by targeting the public unbanked, as well as the lack of information to people who are far from branch offices, that account creation can be done using mobile banking without having to come to the office. Based on these problems, the researcher wants to conduct research to analyze the branchless banking strategy carried out by BSI KCP Jepara.

LITERATURE REVIEW
Branchless banking literally contains a simple meaning, namely a bank without branches. While conceptuallybrancless banking can be interpreted as banking services carried out outside the branch office through intermediaries in cooperation with other parties who are not included in the bank category by utilizing technology (Kurila, Lazuras, & Ketikidis, 2016;Kustina, Dewi, Prena, & Suryasa, 2019;Palaon, Wiryono, & Faturohman, 2020). So branchless banking can be interpreted as one of the financial services for the community without having to go to a physical office with guaranteed security, convenience and efficiency, where this service can be carried out at parties other than banks, for example retail agents, operator networks, shops and others at a low cost, by using technology or what can be called third party services, financial services can be accessed to serve the market unbanked and underbanked (Chipeta & Muthinja, 2018;Malinda, Masyita, Nidar, & Anwar, 2018;Mohan & Viswanathan, 2018;Rizliyanto, Erlina, Hasyim, & Rujiman, 2017;Stapleton, 2013). At this time, when viewed from the point of view, the practice of banking services branchless banking grouped into three versions: first, From its function as store value (storage. mark.money) and channels.transaction. second, From the product features which consist of payment, banking as wellcommerce. Third,From the infrastructure that can be used in the form of cellular phones, devices electronic, as well as offices branch.
From this explanation branchless banking can be interpreted as financial services carried out outside the branch office through cooperation from third parties or bank representatives as bank agents, which only carry out limited transactions using network technology to serve transactions of the lower segment or people who are far from physical offices. (Mohan & Viswanathan, 2018).
Branchless banking in Islamic banking aims to provide financial access services in the MSME sector and society unbanked. branchless banking is a program to reach layersunbanked (in accordance with the primary purpose of sharia banking which is adapted to maqasid sharia or welfare for the community. This can cut costs in opening new branches or offices and branches have been replaced by agents with limited transactions. d. For service banks branchless banking improve the work efficiency of branch offices, because small transactions such as savings, transfers, payments and others can be accessed through agents. e. Banks can increase the number of customers, with the system branchless banking the societal agent modelunbaked As long as you keep your money under your mattress, you can switch to using an agent to save or deposit cash. f. Increasing customer loyalty, where customers who have been reached by branch offices no longer need to go to branch offices to pay bills. 2. Benefits other than being felt by the banking it self branchless banking can also be felt by the community, among others, as follows: Convey facility, serenity, speed as well as security for customers. Do banking transactions are good for existing customers number bill nor Which Don't have an account number yet. a. With an agent, the public can get services quickly without having to go to a branch office, services that agents can provide, for example opening accounts, cash deposit transactions and others. There's no need to queue and it doesn't depend on branch office operating hours. b. In addition to getting fast service, the community also feels convenience, in the sense that procedures are simple, for example at branch offices they have to fill out a lot of forms, at agent customers don't fill out many forms. c. Get the services of a cheap agent. Why is that, because the features that have been made are intended for the lower segment which is financially different from the middle and upper segments, existing products have been specifically designed without any administration costs. d. You will get a safe service, even though this transaction is carried out by an agent using technology, the security system is still prioritized, this security uses a PIN that is private and confidential. e. In addition to speed, convenience, cheapness and security, it can also increase the culture of saving and practice using non-cash money.
3. The benefits felt by agents acting as third parties or representatives of branch offices are: a. Customers who get the opportunity to become agents are a business opportunity or in language they can generate additional income besides the primary business that has been carried out. Every transaction made by the agent will get a commission from the bank in accordance with the initial agreement. b. Increase the number of buyers of its main business. Most rural people, when conducting financial service transactions to shops or others, buy their basic needs, and indirectly this can increase the number of shop buyers who act as agents.branchless banking. c. Increase competitiveness with other stores. As an agent, of course, this will differentiate between his business and non-agent businesses. Besides that, they also get free promotion services which are included in the marketing program carried out by the bank. The bank can notify the public that an agent has been opened to provide financial services in a certain area, the bank will automatically state the address and name of the store that is used as an agent. d. Opportunity in realizing or realizing the main goal. By serving small communities and with all limitations, the presence of an agent can make it easier for the community that financial transactions can be carried out by an agent, with agents ready to help and serve customer needs in conducting financial transactions. 4. Existence branchless banking also has a positive impact on telecommunications companies, one of the benefits obtained by telecommunications companies is: a. Can increase profits through increasingtraffic data and SMS. More and more customers are usingbranchless banking, then it will also have an impact ontraffic telecommunications company, with automatic whentraffic If the company increases, the profit earned by the telecommunications company will also increase. b. Increasing customers or consumers, where every time a company cooperates with a bank to use its services, the number of customers or consumers in the telecommunication company also increases. c. With the cooperation between telecommunications companies and banks will reduce the ratio in these companies. d. Can increase the market share of telecommunications companies with partnerships or cooperation. 5. The government also gets a positive impact with it branchless banking, because branchless banking is one of the main goals of the government to achieve financial inclusion. The following benefits can be obtained by the government: a. The government plans to develop a national strategy on inclusive finance by creating a financial system that will be accessible to all segments of society from the bottom to the top, with the aim of boosting economic growth, alleviating poverty and equalizing income in Indonesia. b. Subsidy programs carried out by the government so far which are channeled in cash through several banking institutions can be disbursed through agents, this is useful for efficiency in distribution and avoiding leakage. c. Recorded public financial transactionsunbanked which had not previously been documented. After there isbranchless banking community transactionsunbanked can be well documented, with that the government can form a mapping of economic potential as material for decision making to increase welfare. d. Can improvereal sector due to an increase in agent income. With the large number of agents that are widespread throughout Indonesia, they are able to increase real sector. e. With the existence of agents, it can provide employment opportunities to the community in the sense that it can open new jobs to reduce unemployment in Indonesia. 6. Existencebranchless banking It is also useful for regulators, in this case the so-called regulators are Indonesian banks and OJK. The following are the benefits obtained by the regulator a. Reducing the use of cash and being able to minimize the amount of printing cash, which is the goal the government wants to achieve to create financial inclusion. b. Branchless banking will help realize the existence of a savings movement program. c. Can help realize a new payment instrument system, namely via cellular phones and others, through financial services that have provided features that can make the existence ofbranchless banking. d. In August 2014, Bank Indonesia planned a national non-cash movement where this program is very much in line with existencebranchless banking. e. Improving the intermediary function in the distribution of funds, among the lower middle class.
Viewed from the organizers of the modelbranchless banking several models can be divided, with the existence of a model the operator can later determine the role of the majority of partners (banks or telecommunication companies). Model branchless banking in Indonesia (Sadari & Hakim, 2019;Sarah, 2013;Yudiana, 2018); 1. Model bank-led. In this model the bank acts as an organizer or as a service providerbrachless banking in which the bank cooperates with a telecommunication company. The bank works with a customer who registers as an official agent for the bank, where the agent acts as a representative of the bank by serving limited customer transactions. The official agent is always under the auspices of the bank and the license and product branding of this service model are owned by the bank.
2. Model telco-led. Opposite of models bank-led In this model, those acting as organizers are parties from the telecommunications company and the bank remains a collector of funds or as a means of holding customer funds accounts. In this model, the product will be developed by the telecommunications company, while branding agent funds will be fully held by the telecommunications party. As an illustration of its business, in order for telecommunications companies to increase profits, telecommunications companies will encourage the number of transactions that are micro-payments in nature, for example the purchase of mobile phone credit. Apart from relying on micro-payments, telecommunications companies can also expand their business by developing existing features, by expanding cooperation with payment agencies. As has been practiced by the name M-Pesa, they are always improving features and collaborating with other agencies that are tailored to the needs of the community. 3. Model hybrid. The model is a merger between modelsbank-led and alsotelco-led. This model takes advantage of each model. Both are integrated into one so as to create a stronger synergy in achieving goals. The hybrid model can run with the consent of both parties. This model can use the bank's name and license as the product namebranchless banking or can act as a financial institution. In collaboration, both parties can enter into agreements or make agreements such as from managing agents, product names, policies, risks and marketing. 4. Third party models. This model is a model of the development of a hybrid model, with the bank system and the telecommunications company forming a company that is named a joint companyventure specialized in providing kitesbranchless banking. The main objective of this model is to get a strategic focus on development, be it from marketing, product, agent development, and others that are still in a relationship. By creationjoin venture it will get a wider market share. 5. Additive models and Transformational models. With the above, savings account products and electronic money have been packaged into a gang bank, which is another nameMobile banking. Mobile banking is a package that contains a type of service productBranchless banking the contents of which are savings accounts and electronic money that contain features such as cash deposits, cash withdrawals, money transfers, purchases, payments, check transactions, check balances, register accounts and change PINs.Mobile banking is one of the potentials to support mediation facilities because mobile banking can act as an additional means or also as a transformational means by prioritizing people who are far from physical offices through mobile banking. Mobile banking has offered prospects for the development of access to formal finance tailored to those who currently do not have financial services. With this in mind, banks must be prepared to expand their markets through cheaper financial services for those who already have financial services or accounts. With the two approaches above, it will certainly spoil customers and prospective customers in terms of greater security.

METHODS
This research was conducted at the Jepara branch of the Indonesian Sharia Bank. The location was chosen because BSI Jepara is a new branch office with the potential for rapid growth. This was supported by the opening of an international scale company in Jepara. Small and medium enterprises in the form of carving, weaving and the tourism sector are also other economic potentials. With this potential, BSI is required to be able to provide innovation to serve the needs of society. Especially with the busy life of its people, BSI must be able to serve its customers through a banking model that can be accessed anytime and anywhere. So, research at BSI Jepara is worthy of being a research object.
This study uses a qualitative approach with interviews, observation and documentation (Cresswell, 2013). Interview data were obtained from several informants who had been selected by the researcher using a purposive sampling method (Brewer, Newman, & Benz, 1999;Djafar, Yunus, DJ Pomalato, & Rasid, 2021;. So that the informants from the CSR department, namely Ardian Putradi and Nur Khasanah, were obtained. On the frontliner, there is a teller by Maria Kibtiyah and a security guard named Mustofa. In the service innovation section, the researcher chose Mr. Iddha Bayu Setiawan as BOSM and Anang Fahrul in the marketing department as informants. The following informant data obtained by researchers: In testing the validity of the data, researchers used source triangulation, technical triangulation and time triangulation (Choy, 2014;Markus, 2007;Solihatin, Ibnu Syarifain, Lagun Siang, & Sukardjo, 2020;Susilo, Lestari, Lukiati, & Sudrajat, 2019). Researchers use analytical tools in the form QDA reminds to analyze more deeply the results of the interviews. Another method is in the form of observing BSI operational activities on certain days at peak times. Observations were also made in several BSI market segmentation areas, namely local governments, agencies, hospitals and other institutions that work with BSI. BSI Jepara focuses its market on government institutions and companies. Nonetheless, the researchers also made observations of several small and medium businesses that could potentially open BSI branchless banking services. The results of the data are then analyzed with theory and previous research to find the novelty of this research.

Service innovation through additive models
This first model prioritizes targeting bank customers who already have financial services (accounts), and offers mobile and internet channels as additional channels, to make it easier for customers to carry out daily transactions without having to go to a branch office. In general, banks will offer additional channels to provide information with the aim of facilitating transactions, additional channels offered by banks, for example mobile banking, internet banking and SMS banking.
In serving customers through additive models through internet banking and mobile banking services, BSI applies service quality through several programs presented by the following informants: "Tell customers the benefits they get, so that customers are interested in using digital banking. Frontliners try to explore customer needs, so that what customers want can be answered or resolved, serving in a friendly manner, being more empathetic when there are complaints. We have to be friendly to customers, continue to explore customer needs and problems, if there is no mobile yet, we can offer it and direct it to CS. Giving surprises, for example, giving prayers, giving gifts, so that customers feel happy and return to the bank again and tell other people. Providing friendly service, exploring customer needs, explaining the advantages, benefits, conveniences obtained from e-banking features etc." "First, to explore the needs of customers, whether for transactions/savings in branchless banking, it is adjusted whether the customer is technology literate or uses old ways. If they are technologically literate, they will offer one of the digital banking services according to their needs and explain the benefits or advantages. Excavated from the needs and background of life (work, status, etc.). We must be friendly to customers, continue to explore the needs of problems, if there is no BSI mobile, it can be offered and directed to CS. Giving surprises, for example, giving prayers, giving gifts, so that customers feel happy and return to other banks and tell other people and optimize services by offering existing products, from financing. Serving customers swiftly and responsively, offering prayers to customers, opening doors for customers, and assisting customers in taking queue numbers and ordering them to sit and wait." "As much as possible in CSR responding and finding solutions to customer problems, if you really can't answer it then CSR seeks information or calculates it from SPV or BM. If the question is more financing, the frontliner explains in general, for details, contact marketing directly, if it's about e-channels or services, ask your boss or group. Serve as much as possible until you get a solution. If you don't get a solution, I usually ask SPV if not CS. We direct it to CS, Call center, BSI official website for the accuracy of the answer that the customer wants." "Banks are more focused on shifting. Yes, now there is mobile banking, right? So we will guide customers to open an account via mobile banking or with a web form so that customers can participate in self-serving, or manually customers will be given a form and fill it out completely. Explaining advantages to the customer, maybe the customer will explain to his friends, maybe his friends are invited too, for example, he gets prizes and photos and he shares photos with the prizes, which can attract his friends and if the customer transactions with a lot of cash deposit, I will order with polite sama2 look at the money counter. From yesterday's training, we were asked to provide an understanding, invite customers to fill out the web form, if there is no cellphone, we provide a tablet to fill out the web form " The following is an analysis of the results of interviews with informants regarding innovation through additive models:

Service innovation through transformational models
This second model has a deliberate aim to reach markets outside or reach out to the unbanked community, by offering products that meet the needs of those who do not have a bank account. People who don't have an account are usually people who are mostly from developing countries. Usually people who do not have an account are heterogeneous people, for example rural people who are far from cities. This transformation model will be strengthened by the presence of agents or third parties from outside the banking sector.
"From a geographical point of view, the BSI KCP Jepara Pemuda II has several categories of outlets. First, it must be close to a government office or in an urban area. In terms of demographics, all segmentation is included, because all the products that we have are accommodated, while those who use digital facilities are productive, young people aged 25 to 45 years, mostly those who are technologically literate, use complete facilities. Actually the main target is next icome customers such as civil servants and entrepreneurs who have employees who can be included in the salary payroll, to maximize digital without having to pay in cash." "The focus of one of us that is directed from the region is from hospitals, Islamic boarding schools, government offices, if we call it gardens. Exploring the needs of customers, for example from hospitals we offer payroll, from payroll we also make observations, where if there are employees who can offer financing products we offer them. If he wants a car, we will offer BSI otto." "Those who use digital facilities are productive, young, 25 to 45 years old, most of them are technology literate, use complete facilities, can also compete with other mobile phones. Yes, it can indeed compete because BSI is the largest bank in Indonesia number 7, the technology is not to be outdone. the potential for transactions is from segments of the age ranging from 25-35 is the productive age." "The First it will definitely strengthen its own features from its digital banking. Providing easy access to customers in using digital banking. Strengthen the mobile banking or digital banking system, the features are attractive and easy to use. Strengthening Internet banking, mobile banking, SMS notifications, web forms and ATM CRM networks." The following is an overall analysis of interview results from informants regarding innovation through transformational models:

DISCUSSION
In implementing the first aspect of service quality, the expansion that has been carried out by BSI KCP Jepara Pemuda II to provide good service has provided the service promised by the frontliner employees. The ability that has been owned by a frontliner in dealing with problems complained by customers and prospective customers (Ashraf, 2023;Palaon et al., 2020;Rachmawati, Farda, Setiyono, Gadjah, & Mada, 2020;Shahabi, Azar, Faezy Razi, & Fallah Shams, 2021). Frontliner has always provided the best service to satisfy customers and prospective customers. In satisfying BSI KCP Jepara youth II frontliner customers, the services provided are in the form of: 1. Always pay attention to personal appearance, so that it always looks neat and clean 2. Conduct initial greeting in accordance with SOP, namely by smiling and making eye contact, greeting, introducing yourself, offering assistance and asking for the customer's name to be used during service 3. Immediately explore and seek information from customers what is needed, what problems are being faced and solve them with the reliability or capabilities that the frontliners already have. 4. Do the final greeting and always do intimacy BSI KCP Jepara Pemuda II has been able to maximize all physical forms, starting from welcoming customers or prospective customers who will immediately feel the physical evidence presented by BSI KCP Jepara Pemuda II, from security guards, queue equipment, airconditioned room facilities, there are monitors to educate the public regarding Islamic banks, the availability of toilets, prayer rooms and on BSI's 1st birthday, BSI provided snacks provided by BSI KCP Jepara Youth I and tablets for opening accounts, cash deposits and cash withdrawals.
Another discovery obtained from this research is the existence of a barcode scan where this barcode scan is used to provide complaints if there is an unsatisfactory service (Aziz, Jabar, Abdullah, & Nor, 2022;Rachmawati, Farda, Rijanta, & Setiyono, 2019;Zahid, Rahman, Ullah, & Muhammad, 2021). Complaints in the form of barcode scans were not investigated by previous researchers (Mangani, Syaukat, Arifin, & Tambunan, 2019;Rizliyanto et al., 2017;Setiyono, Shihab, & Azzahro, 2019;Zaffar, Kumar, & Zhao, 2019). Barcode scans are given to customers who are dissatisfied with a service, these online complaints are directly connected to the center, so complaints from all customers throughout Indonesia will be evaluated by the center and will be corrected by providing evaluations in various branch offices spread across Indonesia evenly. This barcode scan is available at the service office desk, with this strategic location, customers will be free to scan and provide input on services performed at the branch office. Apart from complaining via barcodes, complaints can also be made directly via the BSI web, BSI Mobile, and the Aisyah chatbot with (sharia bank interactive assistant).
In marketing the geographical aspect of BSI KCP Jepara Pemuda II, choose a place or placement of outlets that are close to the Jepara regional head offices, namely in urban areas. With placement close to the head offices, marketing will be more efficient and easier to reach customers who can be said to be far from urban areas, marketing with a location in the middle of the city is considered to be the main road with the reason that many rural people are looking for jobs in the city, with the reason With this, later the people who get the information will bring the information to their respective villages, besides that it will also facilitate access in distributing services starting from the middle class and above who are technologically literate to provide additional services in the form of digital banking.
What is being done by BSI KCP Jepara Pemuda II in marketing the demographic aspect is the main objective of targeting productive ages which can accelerate marketing balanced with current technological developments. In the use of digital banking regardless of age, education and income, with digital banking all categories have been included. The products available at BSI KCP Jepara Pemuda II can already be enjoyed by various groups, from children to the elderly. Even civil servants and employers can already enjoy the products provided by BSI KCP Jepara Pemuda II, for example from using payroll in online employee payroll. Regardless of the existing status, the demographic segmentation strategy carried out by BSI KCP Jepara Pemuda II is able to provide cost, time and effort efficiency. By maximizing this demographic, it is hoped that it will also provide significant effects, one of which is by bringing in maximum income.
BSI KCP Jepara Pemuda II targets all Jepara people starting from urban areas, millennials and focusing on directions given by the region, namely hospitals, offices, Islamic boarding schools and companies and other financial institutions such as cooperatives and others.
From the explanation above, the researcher can explain the novelty that was found, namely the target carried out by BSI KCP Jepara Pemuda II is all Jepara people, millennials and focuses mainly on institutions in remote parts of Jepara, for example Islamic boarding schools, offices, hospital companies and schools. The target for this agency is to maximize marketing so that later it can expand and reach people who are far from branch offices. The strategy used in maximizing marketing through agencies carried out by BSI KCP Jepara Pemuda II is digging in each agency. BSI KCP Jepara Pemuda II is targeting gardening maximization The strategy used by BSI KCP Jepara Pemuda II describes a plantation how to care for what has been planted. With maximum care, it is hoped that the garden will provide many and quality results. In the description above, the position of BSI KCP Jepara Pemuda II is as the person who cares for the garden and the agency or company as the garden where later the garden can be maximized in care so that it can flower until it bears fruit. The first step taken by BSI KCP Jepara Pemuda II is to offer agencies or offices to open an account and offer cooperation, after gaining the trust of BSI KCP Jepara Pemuda II will take care of it by providing good service and building agency trust, if it has won the trust of BSI KCP Jepara Pemuda II will offer products that can provide convenience in managing company money, for example by offering a payroll system, paying employees through a bank. From this payroll, indirectly BSI KCP Jepara Pemuda II will get customers a number of employees owned by the company, for example employees owned by 1000 companies, then BSI KCP Jepara Pemuda II will provide global account opening for these 1000 employees. From the salary system using payroll, BSI KCP Jepara Pemuda II can also monitor employee finances. If later the employee makes a transaction at the branch office, he will be offered products that support, for example, the profile of a young person, then he will be offered BSI Oto products if there are employees. those who need a home will be directed to use griya products, and offer digital products such as BSI Mobile to provide additional services that can be used anywhere and will facilitate daily transactions, BSI Mobile is also a must have for all BSI KCP Jepara youth II customers. This strategy is to accelerate and help optimize branchless banking and always explore and offer other products that can be accessed through BSI mobile or other E-channels.

CONCLUSSION
The strategy carried out by the frontliners of the BSI KCP Jepara Pemuda II is to maximize service by looking at aspectsreability, responsive, assurance and empathy. By providing services that are professional, courteous, friendly, responsive and always provide speed and accuracy in solving problems. Moreover the most prominent strategy to maximizebranchless banking is to provide facilities, in the form of tablets for making cash deposit transactions, cash withdrawals, transferring account books and opening savings accounts through a web form, by providing education and changing the mindset of customers or prospective customers to a more digitalized era.
Marketing expansion strategy in optimizingbranchless banking carried out by BSI KCP Jepara Pemuda II is to focus on urban areas and target the middle class and above and then expand the market for the lower middle class, which focuses on institutions and companies, using a strategygardening namely exploring the needs of the company or exploring the needs of employees, and providing product offers that are suitable and needed. In addition, BSI KCP Jepara Pemuda II always provides the best in terms of technology that can optimizebranchless banking, with attention to strategymarketing mix.