Innovative credit scoring is considered to increase financial inclusion

This service targets daily workers with limited credit access to make purchases

Jakarta ( – Head of Economic Opportunities Research Center for Indonesian Policy Studies (CIPS) Trissia Wijaya assessed the use of the service innovative credit scoring (ICS) can increase financial inclusion in Indonesia.

According to him, ICS will provide opportunities for customers who do not have one creditworthiness or creditworthiness to access financial services.

“In Indonesia, low-income households and MSMEs are faced with challenges in accessing credit from banks and other financial institutions due to limited data regarding their credit history, collateral and official proof of income,” Trissia said in a statement in Jakarta, Friday.

The Financial Services Authority (OJK) conducted a survey in 2022 which showed the financial inclusion index at the national level reached 84.2 percent, up from 76.19 percent in 2013.

Even though there has been a fairly high increase, Trissia said that financial inclusion has not touched the majority of low-income Indonesians.

The ICS measures the creditworthiness of prospective customers who have limitations in accessing financial services using artificial intelligence, machine learning, and non-traditional data, such as social media data, e-commerce transactions, and household billing data.

ICS service providers usually contract with financial institutions either fintech as well as traditional financial institutions as data users who store, control the use, and process personal data in ICS.

ICS acts like a third-party data processing application and assesses consumer eligibility using anonymity methods.

ICS also facilitates soft credit that supports “buy now, pay later” transactions or pay later without credit card ownership and formal credit schemes.

Financial transactions like this will increase customer interest and ultimately increase sales volume.

“This service targets daily workers with limited access to credit to make purchases. There is flexibility offered so that they can manage their finances according to their needs,” explained Trissia.

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Reporter: Sanya Dinda Susanti
Editor: Click Dewanto


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