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SkorLife returns control of credit data to Indonesian consumers – Technology Flow

Indonesia’s credit bureaus currently hold 92 million credit records, but ScoreLife’s founders say many struggle to access their own data. That’s why they created the app, which not only allows people to view their credit histories for free, but also provides personalized advice on how to improve the data. The Jakarta-based startup announced today that it has raised $2.2 million in pre-seed funding.

AC Ventures participated in the round, which also included angel investors such as Saison Capital and the founders of OneCard; Advance.ai’s Jefferson Chan; Coinworks Will Ariffin of Coinworks; Lummos Krishnan Menon; Evermos of Evermos ‘Arip Tirta; Harshet Lunani of Kola; Willy Ariffin of Init-6; Lummos Krishnan Menon; Evermos ‘Arip Tirta; Harshet Lunani of Kola; Achmad Zaki of Init-6; and executives from Northstar Group, Stripe, Google, Boston Consulting Group, Gozek and Creditkarma.

SkorLife says the private, alpha version of its app has been downloaded more than 3,000 times and is growing organically by 50 to 60 new users a day. It surpassed its internal target by 7x and the app will soon be available for public download. The company’s new funds will be used on product development, new hires and marketing. SkorLife currently has 10 employees, with plans to increase the headcount to 40.

CEO Ongki Kurniawan was previously country head of Stripe Indonesia and also held leadership positions at Grab, telcoXL Axiata and Line, while COO Karan Khetan is a serial entrepreneur whose past startups include 5x and BookMyShow Southeast Asia. The two met in 2018 while forming a partnership between Grab and BookMyShow to offer ticketing services through Grab’s Super app.

ScoreLife is founded by Ongki Kurniawan and Karan Khetan

ScoreLife is founded by Ongki Kurniawan and Karan Khetan

Kurniawan told Technology Flow that the two spent a lot of time exploring different ideas. The first was to digitize the “pawnbroker”/secured loan industry, but the unit economics didn’t work.

“However, we found that many Indonesians are pledging their belongings because they believe they will be rejected if they approach the banks,” he said, adding that seven out of 10 loan applicants are actually rejected. “This was further confirmed after talking to several industry experts. We learned that Indonesia’s consumer loan pool is small.

While conducting their research, Kurniawan and Khetan also noticed that many Indonesians do not have access to their credit scores and other data that would help them see how banks determine their creditworthiness, which means they miss out on access to affordable loans.

SkorLife’s founders say credit worthiness is underutilized in Indonesia, where most financial institutions score a person’s ability to get credit lines based on their “earnings worthiness.”

“The thing to remember is that not everyone with a high income will pay off their debt and not everyone with a low income will pay off their debt,” Kurniawan said.

Kurniawan said many people in Indonesia don’t know they can access their own credit history and credit scores, and only financial institutions and banks have access to that information.

If they figure out how to access it, they have two options. The first is the free way, where they request data from the OJK (Indonesian Financial Services Authority). But the problem with this is that they have to go to the OJK office or wait days for an online appointment. Second, the payment method requires consumers to go to three licensed credit bureaus in Indonesia to get their credit reports. But these reports cost money and are many pages long, Kurniawan says, “and it’s not designed to be digested by consumers because it’s meant to be used by analysts at financial institutions.”

SkorLife solves those problems by giving people free access to credit scores they would otherwise have to jump through barriers to get. Its main product is the Credit Builder application, which lets people view and monitor their credit scores, credit reports and other data from the credit bureaus for free. It also helps consumers dispute inaccurate information on their credit reports. If someone doesn’t have a credit history yet, the app helps them start building scores.

Through the app, customers can view their BI checking score, or Indonesia’s nationally recognized credit information, which almost all financial institutions use to make credit decisions, as well as the credit score generated by credit bureaus. Someone defaults on a loan in the next 12 months.

They also look at what factors go into their credit score, including their payment history, credit utilization, balance vs. their secured vs. unsecured credit accounts, the age of each of their credit accounts, ID monitoring to see if the financial institution is working hard. Check their data, total number of credit accounts they have, active and inactive and outstanding balances.

That data is then used to generate AI-powered, personalized insights for each customer that they can use to improve their credit scores. The app also includes educational content and features that allow customers to easily dispute incorrect data.

Some examples of insights include allowing customers to check payment history and bill dates and set reminders, credit age (or encouraging customers not to close a card that’s been open too long), and usage. SkorLife recommends that customers keep their credit card limit utilization under 30% to improve their score.

In a statement, Adrian Li, founder and managing partner of AC Ventures, said, “The opportunity in Indonesia is huge. Although the space is relatively untapped, the size of the consumer credit market is already north of US$185 billion. This is always a challenge here as lenders cannot make comprehensive conclusions about borrowers based on limited and fragmented information. But with these troves of data waiting to be unlocked and put to meaningful use in a consumer-facing app, we’re excited about SkorLife’s vision and mission to put people back in charge of their financial future.

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