SkorLife provides management of credit score information again to Indonesian customers – Thealike


Indonesia’s credit score bureaus at present have about 92 million credit score data, however the founders of SkorLife say many individuals have bother accessing their very own information. That’s why they constructed the app, which not solely lets individuals see their credit score histories totally free, but additionally provides customized recommendation on methods to enhance information. The Jakarta-based startup introduced right now it has raised $2.2 million in pre-seed funding.

AC Ventures participated within the spherical, which additionally included Saison Capital and angel traders like all of the founders of OneCard; Advance.ai’s Jefferson Chan; KoinWorks’ Will Arifin of KoinWorks; Lummo’s Krishnan Menon; Evermos’ Arip Tirta of Evermos; Qoala’s Harshet Lunani; Init-6’s Willy Arifin; Lummo’s Krishnan Menon; Evermos’ Arip Tirta; Qoala’s Harshet Lunani; Init-6’s Achmad Zaky; and executives from Northstar Group, Stripe, Google, Boston Consulting Group, Gojek and CreditKarma.

SkorLife says the personal, alpha model of its app has been downloaded greater than 3,000 occasions and is rising organically by 50 to 60 new customers a day. That surpasses its inner goal by 7x and the app will likely be accessible for public obtain quickly. The firm’s new funding will likely be used on product improvement, new hires and advertising. SkorLife at present has 10 workers, with plans to extend headcount to 40.

CEO Ongki Kurniawan was beforehand nation head of Stripe Indonesia and in addition held management positions at Grab, telcoXL Axiata and Line, whereas COO Karan Khetan is a serial entrepreneur whose previous startups embrace 5x and BookMyShow Southeast Asia. The two met in 2018 whereas organising a partnership between Grab and BookMyShow to supply ticketing providers by Grab’s tremendous app.

SkorLife founders Ongki Kurniawan and Karan Khetan

Kurniawan tells Thealike the 2 spent quite a lot of time exploring completely different concepts. The first was to digitize the “pawn broker”/secured mortgage business, however the unit economics didn’t work.

“However, we found that many Indonesians resort to pawning their items because they believe they will get rejected if they approach banks,” he stated, including that seven out of 10 mortgage candidates do certainly get rejected. “This was further validated after speaking with a number of industry experts. We learned that Indonesia’s consumer borrowing pool is small.”

While doing their analysis, Kurniawan and Khetan additionally noticed that many Indonesians don’t have entry to their credit score scores and different information that will assist them see how banks decide their creditworthiness, which in flip means they lose the chance to entry reasonably priced loans.

SkorLife’s founders say that creditworthiness is underused in Indonesia, the place most monetary establishments rating an individual’s capability to get strains of credit score based mostly on their “income worthiness.”

“The thing to remember is not everyone who has high income will pay their debt and not everyone who has a low income will not pay their debt,” Kurniawan stated.

Kurniawan stated that most individuals in Indonesia are unaware they’ll entry their very own credit score historical past and credit score scores, and consider that solely monetary establishments and banks have entry to that data.

If they do determine methods to entry it, they’ve two choices. The first is the free route, the place they request information from OJK (Indonesian Financial Services Authority). But the issue with that is that they both need to go to an OJK workplace, or wait days for a web based appointment. The second, paid route includes clients going to 3 licensed credit score bureaus in Indonesia to get their credit score reviews. But these reviews value cash, and Kurniawan says they’re many pages lengthy “and not designed to be digested by consumers because it is intended to be used by analysts in financial institutions.”

SkorLife solves these issues by giving individuals free entry to credit score scores they’d in any other case have to leap by hurdles to get. Its essential product is a credit score builder software that permits individuals to immediately see and monitor their credit score scores, credit score reviews and different information from credit score bureaus, totally free. It additionally helps customers dispute inaccurate data on their credit score reviews. If somebody doesn’t have a credit score historical past but, the app will assist them begin constructing scores.

Through the app, clients can see their BI Checking Score, or Indonesia’s nationally-recognized credit score data that’s utilized by nearly all monetary establishments to make credit score selections, in addition to their credit score rating, which is generated by credit score bureaus to find out the potential of somebody defaulting on a mortgage within the subsequent 12 months.

They additionally see what elements go into their credit score rating, together with their fee historical past, credit score utilization, the stability versus their secured versus unsecured credit score accounts, the age of every of their credit score accounts, ID monitoring to see if a monetary establishment is doing a tough examine on their information, the full variety of credit score accounts they’ve, each lively and inactive, and excellent balances.

That information is then used to create AI-based, customized insights for every buyer that they’ll use to enhance their credit score scores. The app additionally has instructional content material and a options that makes it simple for patrons to dispute inaccurate information.

Some examples of insights embrace fee historical past, and permitting clients to examine invoice dates and set reminders, age of credit score (or encouraging clients to not shut a card that has been open for a very long time), and utilization. SkorLife recommends that clients preserve a bank card restrict utilization beneath 30% to enhance their rating.

In a press release, AC Ventures founder and managing companion Adrian Li stated, “The alternative in Indonesia is huge. Even because the area is comparatively untapped, the patron credit score market dimension is already north of US$185 billion. That stated, it has at all times been a problem right here as a result of lenders have by no means been ready to attract holistic conclusions about debtors based mostly on restricted and fragmented data. But with these information troves simply ready to be unlocked and used meaningfully in a consumer-facing app, we’re enthusiastic about SkorLife’s imaginative and prescient and mission of placing individuals again in command of their monetary futures.

 



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