Transformational Digital as Innovation Strategy in Optimizing Collateral Management at PT Bank Central Asia

The heightened digitalization of financial services has transformed credit-risk governance, yet empirical studies that link digital transformation to institutional practices remain limited, particularly in emerging markets. This study addresses this gap by integrating a Systematic Literature Review (SLR) of 84 sources including 80 academic articles and 4 institutional reports from Bank Central Asia, BCA with Brown’s three governance pillars: Value Protection, Borrower Discipline, and Public Trust. Using PRISMA 2020 procedures, the literature was classified into 29 Value Protection, 34 Borrower Discipline, and 17 Public Trust studies, demonstrating distinct yet interconnected domains of digital credit governance. The findings reveal that digital valuation systems, automated verification, and expanded data networks strengthen Value Protection through more consistent and transparent collateral assessment. Borrower Discipline is reinforced by behavioral analytics, early-warning systems, and real-time monitoring, contributing to BCA’s stable NPL ratio (1.8%) and reduced LAR (5.3%). Public Trust, although supported by the smallest cluster of studies, is shown to depend on digital reliability, system transparency, and financial stability, reflected in BCA’s consistently high CASA ratios (>80%) and near-total digital transaction penetration (99.8%). By combining theoretical insights with institutional evidence, this study demonstrates that digital transformation functions not as a supporting tool but as a strategic enabler of integrated credit governance. The resulting framework provides a replicable model for understanding how digital ecosystems improve valuation integrity, behavioral compliance, and long-term trust in modern banking.