Indonesian bureau PKBI introduces consumer credit scoring techMarch 31, 2020
Source: PT. Kredit Biro Indonesia
PT. Kredit Biro Indonesia Jaya (“KBIJ”) as a private credit bureau licenced by Indonesia Monetary Authority (OJK) is pleased to announce the introduction of “SKORKU” to the Indonesia financial market, making it the first Indonesia consumer score developed using real credit data (credit bureau data) and state of the art machine learning algorithm.
“SKORKU” is a three-digit scoring system, ranging from 470 to 710, that summarizes all information beyond the credit report, into a single score. Information about a borrower’s demography, length of credit history, repayment patterns and types of credit are used to measure the borrower’s potential credit risk and predict the likelihood of defaulting on repayments.
“SKORKU” is developed to provide lending institutions with a bureau-based risk profile to assess new credit applicants, both with and without credit history, and make more informed and accurate credit decisions. It enables lending institutions to quickly assess the quality of credit applicants and allows decisions to be consistent. Compared to the traditional internal application score, “SKORKU” is potentially able to improve approval rate by approximately 20% to 60% and reduce non-performing loan rate by approximately 10% to 40% for a given approval rate. Its application can reduce costs significantly caused by defaulted loans.
Mr. Hendra Tan, President Director of PT. OneConnect Financial Technology Indonesia, said: “‘SKORKU’ is the first product jointly developed by OneConnect and KBIJ. We are glad to be the trusted expert to engineer ‘SKORKU’ using our bank-grade credit scoring solutions. OneConnect has served over 3,700 customers including all of China’s major banks. Our lending platform has collectively reached hundreds of millions of end-customers and on a daily basis, facilitated over 4.2 million credit risk assessments. We use machine learning algorithm that crunches a wide spectrum of data and converts them into meaningful credit scores, thereby generating highly granular borrower personas quickly and accurately. We look forward to building and launching more useful products with KBIJ in the future to help financial institutions, businesses and people in Indonesia to unlock opportunities with greater financial abilities.”
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