CLIK’s Launch New Credit Scoring Model, Aims for a Safe and Higher Approval Rate for Consumer Credit Providers

Jakarta, December 12, 2024 – Indonesia’s consumer credit market has experienced notable growth, particularly in the segment of short-tenure, small-ticket loans. These loans are increasingly popular among individuals seeking quick funding for urgent or discretionary needs such as medical expenses, education, travel, or household necessities. Based on data from the Financial Services Authority (OJK), banking consumer credit grew by 10.88% annually as of September 2024. This figure is higher than the growth in August, which was 10.83%. This trend underscores the rising demand for financial products that cater to diverse consumer needs.

PT CRIF Lembaga Informasi Keuangan (CLIK) stated, there are significant growth in the disbursement for small-ticket and short-tenure loans in Indonesia. In Q3 2024, a total disbursement for small-ticket and short-tenure loans in Indonesia reached IDR 29,9 trillion. This growth is underpinned by a remarkable 35,75 million new contracts, increasing 24,95% compared to Q2 2024.

Given the increasing demand for small-ticket and short-tenure loans, CLIK recognizes the need for innovative solutions to improve credit risk assessment processes. Leonardo Lapalorcia, President Director PT CRIF Lembaga Informasi Keuangan (CLIK), highlighted that real-time data access and the progressive adoption of advanced analytics are some of the ways for industry players to enter the digital era of innovative credit risk assessment.

“It is crucial for industry players to ensure responsible lending practices while maintaining access to credit. The innovation of real-time data access and advanced technology for analytics will help us create fast and lean digital assessment processes. This innovation also enables a shift from collateral heavy loan policies to unsecured lending, where credit scores can serve as the reputation collateral of the prospective debtor,” said Leonardo.

According to Leonardo, this innovative tool is crucially important within several industry players, including peer-to-peer lending (P2P lending) companies, Buy Now Pay Later (BNPL) providers, multifinance companies, banks, and other credit service operators. To address this need, CLIK created a solution for industry players to assess the data of prospective debtors more comprehensively, ensuring more precise credit allocation. Recently, CLIK launched their latest credit score model called CLIK Skor Kredit Accelerasi Inklusi (CLIK SKAI) in Jakarta.

“Credit scores basically make use of two types of source data, internal and external data of each debtor. In terms of external data, credit bureau data is a dominant provider for most scoring models and systems. Therefore, CLIK created this new credit scoring model, specifically designed for short-tenure loans with a tenor of up to six (6) months and a maximum loan amount of IDR 8 million. This innovation aims to predict default risks for newly disbursed loans, helping lenders make more accurate decisions,” explained Jan Tjintjelaar, Commercial Director CLIK.

This latest credit scoring model leverages the power of Artificial Intelligence (AI) technology, machine learning, and alternative data sources that ultimately create a new, more accurate Bureau Scorecard. CLIK’s goal is to streamline the process for financial institutions, enabling them to more accurately assess the creditworthiness of potential debtors. CLIK SKAI is also designed to increase loan approvals without increasing the risk of default, while expanding financial inclusion in Indonesia.

During the CLIK SKAI launch event, Anggie Setia Ariningsih, Chair of the Buy Now Pay Later (BNPL) Committee at Asosiasi Perusahaan Pembiayaan Indonesia (APPI) expressed optimism, highlighting the role of collaboration in strengthening the financial ecosystem, “As technology continues to evolve and consumer preferences shift towards convenient payment solutions, industry players must strive to create a safer and more secure BNPL experience. CLIK SKAI is well-positioned to address this need by recording all data needed for industry players. This presents a good opportunity for a collaboration between financial services providers and Credit Bureaus,” she said.

On the same occasion, Tiar Nabilla Karbala, Secretary General of Asosiasi Fintech Pendanaan Bersama Indonesia (AFPI) expects more collaboration between the industry players and association to educate debtors on the responsible use of credit, “The rise of online marketplaces has facilitated consumer purchases and driven the growth of the digital economy. This trend has led to an increased demand for short-term financing solutions to meet their immediate needs. In the upcoming year, we expect industry players to work closely with associations to focus on educating the public about the responsible use of credit,” he said.

Through this initiative, CLIK aims to support key stakeholders in the financial ecosystem—including banks, multifinance companies, and peer-to-peer (P2P) lending platforms—in improving credit risk management, strengthening financial inclusion, and fostering responsible lending practices to navigate an ever-evolving market landscape.