Digitalization in the banking sector has in fact been able to make banks more efficient during a pandemic. This can be seen from the ratio of Operational Income Operating Expenses (BOPO) for conventional commercial banks which fell in March 2021. The Financial Services Authority (OJK) noted that the BOPO ratio was 86.44% in March 2021 compared to the same position last year which was 88.84%. The BOPO ratio of PT Bank Tabungan Negara Tbk (BTN) also decreased as of May 2021 compared to December 2020. The bank codenamed the BBTN exchange targets that by the end of 2021 the BOPO ratio is projected to decrease further until it reaches the target of below 90%. The main director of BTN, Haru Koesmahargyo, said that one of the factors causing the high BOPO in banking was interest expense. At BTN there have been significant cost of fund savings up to May 2021, so Bank BTN's BOPO has also decreased," Haru explained to KONTAN on Friday (25/6). Haru explained, to maintain the BOPO ratio, BTN implemented two strategies. First, BTN maintains operational expenses by focusing on reducing the cost of funds and keeping other overhead expenses efficient. Second, BTN increases operating income by increasing quality credit distribution. This is intended to keep interest income optimal and increase fee based income. PT Bank Negara Indonesia Tok (BNI) was also able to reduce BOPO thanks to digital innovation and business process automation that made BNI more efficient. This had an impact, namely the improvement in BNI's BOPO ratio. It was recorded, as of May 2021 it was at 79.3% or improved from the position at the end of 2020 which was at 93.3%. BNI Corporate Secretary Mucharom said, BNI's BOPO is still below the industry average to date. "We project that this year's BOPO will be better than last year," said Mucharom to KONTAN, Friday (25/6). Mucharom stated that increasing low-cost funds or current account saving accounts (CASA) and fee-based income was BNI's main target to maintain the BOPO ratio. "The steps we have prepared in order to gather CASA and create FBI resources are strengthening BNI Mobile Banking as the dominant banking service facility for use by retail customers," explained Mucharom.As of March 2021, the number of BNI Mobile Banking users reached 8.56 million, a growth of 58.4% compared to the same position last year of 5.41 million customers. Mucharom said, in terms of transaction value, it was recorded at IDR 138 trillion in March 2021, growing 33.2% compared to March 2020 which amounted to IDR 103 trillion. 'The high interest of BNI Mobile Banking users is caused by the features available in it. Such as Biometric Login, User-ID Auto Filling, Point+ Integration, Account Opening, Loan Applications, Credit Card Integration, until the availability of QR Payment. Development will continue to be carried out in the future, including by embedding Personal Finance Management features to SME Solution Integration, "explained Mucharom. Apart from BNI Mobile Banking, Mucharom stated, strengthening BNI Direct and Integrated Portal was also one of BNI's steps to maintain the BOPO ratio. BNI Direct is designed for customers to be able to carry out banking transactions as a whole using portals and applications which include service features Payment Management, Collecting Management, Liquidity Management, Value Chain Management, and Open Banking Solutions. It was recorded that the contribution of low-cost fund withdrawals for the company increased to IDR 231 trillion or 53% of the total CASA collected by BNI in the first quarter of 2021. BNI has also prepared a BNI Digital Service API which has been prepared since 2018. "Currently, BNI has been able to provide 238 services that have been used by more than 3,000 clients," added Mucharom.Question: 1. Explain what are the advantages and disadvantages of digital services compared to conventional methods? 2. Do you think there will be a productivity paradox in banking service innovation? And how to minimize it so that it can satisfy both parties: stakeholders and users of banking services? 3. Explain the basic differences between manufacturing and service activities and provide examples