The expenditure cycle that occurs in PIGGY BANK concludes the service

provided for its customers who want to borrow some money or take a loan with a
purpose to fulfill their own necessity. The cycle starts when the registration
application is handed to the bank’s customers. The related person will be required to
fill the application form consisting of information about the customer’s biodata,
competence level on settling the debt, covenant between the bank and borrower,
and last but the most important one is identity card such as KTP for Indonesians.
Then, the application form will go through the next stage, which is credit analysis. In
this step, the current status of prospectus customers will be analyzed by the credit
department thoroughly. After the analyzation has been conducted and the bank has
got the result on hand already, the customer’s data will then be kept in customer
database matched against the terms, conditions, and other regulations of the banks
in terms of borrowers’ feasibility. The credit department continues the process by
making a final customer report.

Afterwards, a credit administrator will send the authorization consent or approval

memo to the subsequent phase, which is either a creation of new account (unless
they have an existing account at PIGGYBANK’s customer database) or an updated
version of existing account. The process of new account opening or current account
updating will take place at the front office. In this phase, a front officer will update the
account database that comprises the private and confidential information regarding
the borrowers. Later, when the saving account has been made and updated, both
unsigned contract and customer’s agreement statement would be sent to the notary.
The notary or solicitor chosen would make the contract legal and after he has done
his job, he will send the new legalized contract back to the credit department in bank.
Next, the credit department will make a disbursement approval note to another
department, which is finance department. Here, they would conduct a cash
disbursement, update the accounts receivable database, and finally send a
disbursement note to the accounting department, who will then update the general
ledger of the bank.