SkorLife affords administration of credit rating knowledge again to Indonesian consumers – TechCrunch
Indonesia’s credit rating bureaus presently have about ninety two million credit rating data, nonetheless the founders of SkorLife say many people have trouble accessing their very personal knowledge. That’s why they constructed the app, which not solely lets of us see their credit rating histories with out spending a dime, however in addition affords personalised advice on strategies to reinforce knowledge. The Jakarta-primarily based startup introduced immediately it has raised $2.2 million in pre-seed funding.
AC Ventures participated inside the spherical, which additionally included Saison Capital and angel retailers 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 private, alpha mannequin of its app has been downloaded greater than three,000 instances and is rising organically by 50 to 60 new clients a day. That surpasses its inside goal by 7x and the app shall be obtainable for public get hold of quickly. the agency’s new funding shall be used on product enchancment, new hires and advertising and marketing. SkorLife presently has 10 workers, with plans to enhance headcount to forty.
CEO Ongki Kurniawan was beforehand nation head of Stripe Indonesia and likewise held management positions at seize, 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 seize and BookMyShow to current ticketing companies by means of seize’s great app.
Kurniawan tells TechCrunch the two spent a quantity of time exploring utterly different ideas. the predominant was to digitize the “pawn supplier”/secured mortgage commerce, nonetheless the unit economics did not work.
“nonetheless, we found that many Indonesians resort to pawning their gadgets as a outcome of they contemplate they might get rejected in the event that they method banks,” he mentioned, including that seven out of 10 mortgage candidates do certainly get rejected. “This was extra validated after talking with pretty a pair of commerce consultants. We realized that Indonesia’s shopper borrowing pool is small.”
whereas doing their evaluation, Kurniawan and Khetan additionally noticed that many Indonesians don’t have entry to their credit rating scores and utterly different knowledge that will assist them see how banks decide their creditworthiness, which in flip means they lose the prospect to entry low price loans.
SkorLife’s founders say that creditworthiness is underused in Indonesia, the place most monetary institutions rating a particular person’s capability to get traces of credit rating primarily based on their “earnings worthiness.”
“The factor to maintain in thoughts simply isn’t everyone who has extreme earnings pays their debt and by no means everyone who has a low earnings will not pay their debt,” Kurniawan mentioned.
Kurniawan mentioned that the majority people in Indonesia are unaware they’re going to entry their very personal credit rating historic previous and credit rating scores, and contemplate that solely monetary institutions and banks have entry to that knowledge.
in the event that they do decide strategies to entry it, they’ve two selections. the predominant is the free route, the place they request knowledge from OJK (Indonesian monetary companies Authority). nonetheless the draw again with that is that they both ought to go to an OJK office, or wait days for an internet primarily based appointment. The second, paid route entails clients going to a few licensed credit rating bureaus in Indonesia to get their credit rating reviews. however these reviews value money, and Kurniawan says they’re many pages prolonged “and by no means designed to be digested by consumers as a outcome of it is speculated to be used by analysts in monetary institutions.”
SkorLife solves these factors by giving of us free entry to credit rating scores they might in any other case ought to leap by means of hurdles to get. Its predominant product is a credit rating builder utility that permits of us to immediately see and monitor their credit rating scores, credit rating reviews and utterly different knowledge from credit rating bureaus, with out spending a dime. It additionally helps clients dispute inaccurate knowledge on their credit rating reviews. If somebody doesn’t have a credit rating historic previous but, the app will assist them start constructing scores.
by means of the app, clients can see their BI Checking rating, or Indonesia’s nationally-acknowledged credit rating knowledge that is utilized by virtually all monetary institutions to make credit rating selections, as properly as to their credit rating rating, which is generated by credit rating bureaus to get hold of out the potential for somebody defaulting on a mortgage inside the subsequent 12 months.
in addition they see what elements go into their credit rating rating, collectively with their charge historic previous, credit rating utilization, the stability versus their secured versus unsecured credit rating accounts, the age of every of their credit rating accounts, ID monitoring to see if a monetary institution is doing a sturdy confirm on their knowledge, the complete quantity of credit rating accounts they’ve, each lively and inactive, and excellent balances.
That knowledge is then used to create AI-primarily based, personalised insights for every buyer that they’re going to use to reinforce their credit rating scores. The app additionally has instructional content material and a options that makes it simple for purchasers to dispute inaccurate knowledge.
Some examples of insights embrace charge historic previous, and permitting clients to confirm invoice dates and set reminders, age of credit rating (or encouraging clients to not shut a card that has been open for a very very prolonged time), and utilization. SkorLife recommends that clients preserve a financial institution card restrict utilization beneath 30% to reinforce their rating.
In an announcement, AC Ventures founder and managing companion Adrian Li mentioned, “the prospect in Indonesia is very large. at the same time as a outcome of the residence is comparatively untapped, the shopper credit rating market measurement is already north of US$185 billion. That mentioned, it has on an everyday basis been a problem right here as a outcome of lenders have by no means been in a place to draw holistic conclusions about debtors primarily based on restricted and fragmented knowledge. however with these knowledge troves simply ready to be unlocked and used meaningfully in a shopper-dealing with app, we’re obsessed with SkorLife’s imaginative and prescient and mission of placing of us again answerable for his or her monetary futures.