Fineoz Expands Prospective Debtors with IdAlternativeScore Pefindo Credit Bureau
Fineoz, as one of Indonesian Fintech companies that has been recorded in Financial Institution Authority (OJK) with record number S-279/MS.72/2019, proudly announced the launch of a new collaboration credit risk assessment product called IdAlternative Score on Thursday, April 23rd 2020. Fineoz, a pioneer of Artificial Intelligence (AI) credit scoring in Indonesia, in collaboration with PEFINDO Credit Bureau, a pioneer of private credit bureaus in Indonesia, has jointly developed this product for four months. The new product, IdAlternative Score, is ready for use by Indonesian financial institutions on the day of the launch.
Currently, Indonesian financial institutions can only get credit scoring on debtors that have credit history. This is commonly known the “banked customers”. Meanwhile, many Indonesians who wish to receive loan services without credit history or known as “unbanked customers” generally do not get any credit scoring at all. This is the reason so many unbanked customers are unable to get lending access to financial institutions in Indonesia, which is something that Fineoz is good at in enabling lending access to the unbanked customers.
Anis mentioned that unbanked people in Indonesia have currently reached to more than 100 million people or almost reach to 60% of potential customers. The primary issue lies on the absence of information of the customers, which leads financial institutions to decline the loan application. As a result, Indonesian financial institutions are having trouble in expanding the scope of new prospective borrowers.
While the limited customer reach occurs, IdAlternative Score is served to provide solution for this problem. By utilizing the technology by Fineoz, the synergy product uses non-credit data for credit assessment. The information of the customers will be received directly through digital channel on government, public institutions and organisational data. By using the product, financial institutions can easily expand the scope of potential customers and reach those who previously do not have access to loan services.
For those without credit history, these alternative data will be the main sources in credit assessment. In the next several months, the database of this product will be equipped by using another new alternative data, such as Telecommunication and Utilities data. As a result, financial institutions will utilise alternative data as an additional source in amplifying customer credit ratings for the existing customers and increase their profile accuracy.
IdAlternative Score becomes one of many achievements of Fineoz in supporting the improvement of national financial inclusion by enriching data sources to gain more prospective borrowers and avoid the risk of increasing Non-performing Loans (NPL) in financial institutions. With the launch of this product, Fineoz hopes to continue the collaboration with PEFINDO Credit Bureau to find more solutions in developing credit assessments and plays an important role in overcoming the Indonesian economy.
Anis Radianis stated “This is the new era in Indonesian lending landscape, especially in credit risk assessment where we are able to reach the huge potential lending market of the unbanked customers in Indonesia with our technology. Our objective is to help Indonesian economy to positively grown by providing a responsible lending practice in managing the risk of the unbanked customers. On the other side, the unbanked customers have more opportunity get a loan and a better deal with financial institutions. I would like to say thank you to PEFINDO Credit Bureau for their trust with our credit scoring technology to reach the same objective of serving unbanked Indonesian customers”