Kredit Pintar uses AI to speed up loan processing
Launched in early 2018, Kredit Pintar utilises Artificial Intelligence (AI) to process credit scoring, big data for risk mitigation processes, and Alternative Data technology to help produce quality loan assets through public data.
Kredit Pintar vice president Boan Sianipar says, “These built-in-house technologies enable us to process loans faster via website or mobile app.”
Prior to launching its mobile app for lenders, Kredit Pintar launched a mobile app for borrowers. Lenders could only use its service through the website.
“By launching this app, we are also aiming to double the number of our retail investors by next year,” says Kredit Pintar chief executive officer and co-founder Wisely Wijaya.
Boan adds that the company is targeting millennials who prefer to access or conduct transactions through mobile apps.
The company now has 1,000 lenders, dominated by three banks and two multi finance partners. It has channelled total of one trillion rupiah (US$69 million) to 500,000 individual borrowers aged from 25 to 30 in 15 cities across Indonesia.
Aiming to support the government’s goal of increasing financial literacy to 75% by 2019, Wisely started this company and registered it with the Indonesian Financial Services Authority (OJK) in April 2018. The licensing process will be conducted in April 2019.
Kredit Pintar offers an 18% yearly return rate to its lenders with tenors ranging from one month to one year for a minimum investment of 10,000 rupiah (US$0.69).
It also provides a flexible withdrawal feature where lenders are able to invest for shorter periods (seven days to one month) with return rate from 0.3% to 1% per day, and a minimum investment amount of 500,000 rupiah (US$34.50) to 2,000,000 rupiah (US$138).
To invest, users have to submit their identification cards, and fill in their personal details. The AI technology will match their profiles with suitable borrowers.
Boan discloses that 60% of loans are for consumptive purposes and therefore the company is working with partners to manage credit risk. He also says that the company has a zero default rate to date.
When asked about funding and future targets, both Boan and Wisely declined to disclose any information.
But they said that the company is focusing on offline and online marketing to reach out to more users and aim to add more funding source partners as well as e-commerce providers to offer their services.