CLIK Enhancing Client Experiences through Innovative Credit Bureau Solutions

The banking and financing industry’s demands to transform its business processes towards digitalization are increasing. It aligns with today’s consumer expectation, which prioritizes convenience, accessibility, and security for their daily transactions. As technology is being refined, it impacts the continuation from consumers’ expectation to get more personalized, efficient, and seamless experiences from financial service providers, especially when it comes to applying for a loan and managing their creditworthiness.

Today, we see the rise of new forms of financial services, like microfinance, Buy Now Pay Later (BNPL), digital banking and e-wallets. Those services democratize every layer of society to make their financial transactions easier, faster, and safer, even for those without traditional bank accounts. The unbanked population in Indonesia has reached 97.74 million people, equal to 48% of the country’s adult population, according to a World Bank report in 2021.

Another report from ResearchAndMarkets states that BNPL’s adoption in the country remains strong, expected to grow by 16.8 percent on an annual basis to reach US$5.15 billion in 2024. This trend will persist, with a projected Compound Annual Growth Rate (CAGR) of 11.2 percent during 2024-2029. BNPL’s gross merchandise value (GMV) will increase from US$6.51 billion in 2023 to $12.59 billion by 2029.

On the other hand, OJK expressed concerns regarding internal and external risks that might arise from partnerships between digital banks and fintech lending through channeling schemes. Internally, there is an urgent need to strengthen and continuously improve credit assessment capabilities to ensure accurate risk assessments. Meanwhile, externally, the impact of global economic turmoil and persistently high-interest rates over a long period of time poses quite a big challenge. This situation creates economic uncertainty and a decline in the value of financial assets.

Responding to the challenges, OJK has taken proactive steps to maintain conducive conditions for creditors. This implementing regulations to adapt to technological advancements, leveraging regulatory sandboxes and innovation offices in the fintech industry to monitor and safely test innovations, as well as enhancing skills and capabilities in risk management and supervision.

These proactive steps are also taken by the Private Credit Bureau PT CRIF Lembaga Informasi Keuangan (CLIK), which consistently applies a similar strategy with its clients. This strategy involves implementing innovative solutions to better understand the patterns, thereby assisting in risk assessment and decision-making processes.

CLIK’s Innovative Solutions to Drive Business Excellence for Clients

It is not easy for financial institutions to adapt to ever-increasing public expectations of society while continuously pursuing operational excellence. Therefore, President Director CLIK Leonardo Lapalorcia emphasizes the need for the company’s agility in meeting client needs. This is done by simplifying the credit application process and offering sophisticated risk management tools. CLIK offers a range of innovative solutions designed to make them a leading player in today’s competitive market.

• Know Your Customer Faster and Better

Using soft-pull reports from CLIK, financial institutions are not only able to identify whether a prospective customer has a valid identity, but also are quickly informed if the candidate is a good customer This allows financial institutions to make faster decisions in continuing the onboarding process.

• Provide A Comprehensive Credit Scoring

Through its recently launched collaborative product, CLIK Spectrum, CLIK leverages Artificial Intelligence (AI) to provide a more comprehensive credit score beyond traditional credit data by considering alternative telco data sources, offering a more targeted risk assessment for creditors.

• Enhanced Credit Risk Prevention System

CLIK offers a proactive alerting tool called the Portfolio Alert, which generates alerts based on trigger events related to changes in subject and/or contract data associated with client’s customers. Clients can set their own filters for the types of alerts they want to receive and combine them with Monitoring Inquiry. The solution answers the need for speed and accuracy in obtaining critical information changes required for various processes including risk management, collections or even business development.

• Improved Business Decisions

CLIK can help customers make strategic business decisions through its insight services. Customers can take advantage of the CLIK dashboard, an interactive service containing hundreds of up-to-date statistics that can be customized to answer various data needs. Additionally, CLIK can also provide custom report services based on specific customer needs.

CLIK Helps Clients’ Businesses Grow

Currently, more and more financial and non-financial institutions are utilizing credit bureau services. P2P lending institutions are one example of a financial institution that makes extensive use of PT CLIK services for various business processes. Currently, the P2P business is still an attractive business, but on the other hand, there are more and more challenges being faced, such as changes in the economic and regulatory situation, tight industry competition and also the ever-present fraud.

Anticipating these challenges, several P2P lending institutions have used CLIK Credit Bureau services to access comprehensive and accurate data, as well as take advantage of other additional services.

PT CLIK is supported by CRIF, a global company specialized in Credit Bureaus, Business Information, Analytics and Process Automation, can provide various services tailored to client needs so that the services utilized by clients will be faster, easier and accurate to use, helping to always compete against all challenges and can explore new opportunities.

The collaboration has greatly improved fintech P2P lending institutions’ operational efficiency and customer satisfaction, such as increasing loan disbursement and reducing processing time. This achievement increased their competitiveness and solidified their reputation as reliable P2P lending companies.