An end-to-end digital pawn system for Pegadaian: A conceptual innovation framework based on advanced technologies

Abstract

Background: Digital transformation has driven pawn institutions in Indonesia to pursue technological innovation, one of which is reflected in the development of the Tring! digital service application by Pegadaian. Despite this initiative, several core processes within online pawn services remain only partially digitalized, particularly those involving non-face-to-face valuation, physical asset handling, and end-to-end service integration. A more comprehensive digital architecture is needed to connect these processes into an integrated service lifecycle. Methods: This study adopts a qualitative conceptual approach based on library research and employs descriptive–analytical analysis of academic literature, regulatory documents, and industry reports published over the past decade. The analysis is used to identify key limitations in existing digital pawn services and to formulate an end-to-end digital pawn system model tailored to Pegadaian’s operational and regulatory context. Findings: The analysis indicates that the current Tring! application continues to face limitations in processing speed, valuation accuracy, risk mitigation, transparency, and end-to-end service integration, particularly for non-face-to-face pawn transactions. To address these gaps, this study proposes an integrated digital pawn system incorporating continuous electronic Know Your Customer (e-KYC), artificial intelligence-enabled remote initial valuation, technology-supported asset pickup and custody, and a transparent and accountable audit trail mechanism. Conclusion: The proposed framework provides a conceptual architecture for integrating previously fragmented digital processes across the online pawn service lifecycle. By connecting identity verification, valuation, physical asset handling, risk control, and auditability within a unified system, the framework is expected to support more efficient, transparent, and accountable digital pawn services. Novelty/Originality of this article: The proposed framework has not yet been empirically tested and therefore requires future pilot implementation and performance evaluation. Its originality lies in proposing a holistic end-to-end digital pawn framework specifically contextualized for Pegadaian, extending beyond the digitalization of individual processes toward integrated service delivery across the entire online pawn lifecycle.