Event Recap: Fintech Talk Of The Month — Digital Transformation With Fintech API
Last week on the 27th of April, Brick’s Fintech Talk Of The Month was held. The umbrella topic for the discussion was about Digital Transformation with Fintech API, more focusing on P2P lending and credit scoring. We were accompanied by three amazing speakers with their respective topics; Fintech API for financial services by Gavin Tan, CEO & Co-founder of Brick; Fintech ecosystem in Indonesia by Kuseryansyah, Executive Director of AFPI; and Embedded scoring by Michele Tucci, Chief Product Officer, Global at Credolab. To get you caught up, let’s take a look at the summary of Brick’s Fintech Talk.
As the background of the webinar, we take a look at the problem faced by the industry. Quoting from Gavin Tan’s presentation, there is Rp.169.5 Trillion total loans that have been distributed to users as of Feb 2021 (Source: OJK) and there’s about 43.5 million users (entities and individuals) as of December 2020. The current problem of the fintech industry, especially in Fintech P2P Lending, is Financial technology companies do not have access to external data points, and for digital lenders they’re lack of credit history data and high occurrence of fraud. Because of those, It could be a hindrance of digital transformation and fulfillment of users’ demand.
Kuseryansyah, in his talk about Fintech Lending Ecosystem in Indonesia, also added important points on how the future expansion of fintech lending involves openess in regulation and also innovation by fintechs. There is a system that can help the fintech lending industry called ‘credit scoring’, which is a technology that uses a certain algorithm through information technology to generate value or a Credit Scoring letter that shows an assessment of a person’s eligibility to borrow services. Also with huge data points, it can also help speed up the analysis process of the credit scoring.
Being the last keynote speaker, Michele Tucci expanded more of the idea on how to leverage credit scoring through combining transactional data with behavioral data. Through this technology, lending platforms would be able to reduce fraud for onboarding processes and create a stronger integrated credit scoring model. While being in the big data era, he also mentioned that ‘good data’ selection is a necessary process to enhance this system.
The discussion was leaning towards how innovations could solve those problems. Our speakers each mentioned how their entity could leverage the implementation of digital transformation. Brick helps with Financial APIs and connect fintechs with data points needed, Credolab helps with their credit scoring technology to analyze credit applications accurately, and from AFPI’s side has developed the Fintech Data Center (FDC) in Indonesia to be able to build lender’s trust. With collaboration from fintechs and regulators it is expected that the digital transformation will occur rapidly and massively, especially within the P2P lending environment.
That’s all for Brick’s Fintech Talk of The Month.
