Indonesia’s credit score bureaus presently have about 92 million credit score information, however the founders of SkorLife say many individuals have bother accessing their very own knowledge. That’s why they constructed the app, which not solely lets folks see their credit score histories without spending a dime, but additionally offers customized recommendation on how you can enhance knowledge. The Jakarta-based startup introduced as we speak it has raised $2.2 million in pre-seed funding.
AC Ventures participated within the spherical, which additionally included Saison Capital and angel buyers 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 obtainable for public obtain quickly. The corporate’s new funding will likely be used on product improvement, new hires and advertising. SkorLife presently 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 Seize, telcoXL Axiata and Line, whereas COO Karan Khetan is a serial entrepreneur whose previous startups embrace 5x and BookMyShow Southeast Asia. The 2 met in 2018 whereas organising a partnership between Seize and BookMyShow to supply ticketing providers via Seize’s tremendous app.
Kurniawan tells TechCrunch the 2 spent a number of time exploring totally different concepts. The primary was to digitize the “pawn dealer”/secured mortgage trade, however the unit economics didn’t work.
“Nevertheless, we discovered that many Indonesians resort to pawning their gadgets as a result of they imagine they are going to 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 additional validated after talking with quite a few trade consultants. We realized that Indonesia’s shopper borrowing pool is small.”
Whereas doing their analysis, Kurniawan and Khetan additionally noticed that many Indonesians don’t have entry to their credit score scores and different knowledge that might assist them see how banks decide their creditworthiness, which in flip means they lose the chance to entry inexpensive loans.
SkorLife’s founders say that creditworthiness is underused in Indonesia, the place most monetary establishments rating an individual’s means to get strains of credit score primarily based on their “earnings worthiness.”
“The factor to recollect shouldn’t be everybody who has excessive earnings can pay their debt and never everybody who has a low earnings is not going to pay their debt,” Kurniawan mentioned.
Kurniawan mentioned that most individuals in Indonesia are unaware they will entry their very own credit score historical past and credit score scores, and imagine that solely monetary establishments and banks have entry to that data.
In the event that they do determine how you can entry it, they’ve two choices. The primary is the free route, the place they request knowledge from OJK (Indonesian Monetary Providers Authority). However the issue with that is that they both should go to an OJK workplace, or wait days for a web based appointment. The second, paid route entails prospects going to a few licensed credit score bureaus in Indonesia to get their credit score studies. However these studies price cash, and Kurniawan says they’re many pages lengthy “and never designed to be digested by shoppers as a result of it’s meant for use by analysts in monetary establishments.”
SkorLife solves these issues by giving folks free entry to credit score scores they might in any other case have to leap via hurdles to get. Its major product is a credit score builder utility that permits folks to immediately see and monitor their credit score scores, credit score studies and different knowledge from credit score bureaus, without spending a dime. It additionally helps customers dispute inaccurate data on their credit score studies. If somebody doesn’t have a credit score historical past but, the app will assist them begin constructing scores.
Via the app, prospects can see their BI Checking Rating, or Indonesia’s nationally-recognized credit score data that’s utilized by nearly all monetary establishments to make credit score choices, in addition to their credit score rating, which is generated by credit score bureaus to find out the potential for somebody defaulting on a mortgage within the subsequent 12 months.
In addition they see what elements go into their credit score rating, together with their cost 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 verify on their knowledge, the entire variety of credit score accounts they’ve, each energetic and inactive, and excellent balances.
That knowledge is then used to create AI-based, customized insights for every buyer that they will use to enhance their credit score scores. The app additionally has instructional content material and a options that makes it straightforward for patrons to dispute inaccurate knowledge.
Some examples of insights embrace cost historical past, and permitting prospects to verify invoice dates and set reminders, age of credit score (or encouraging prospects to not shut a card that has been open for a very long time), and utilization. SkorLife recommends that prospects keep a bank card restrict utilization beneath 30% to enhance their rating.
In an announcement, AC Ventures founder and managing companion Adrian Li mentioned, “The chance in Indonesia is very large. Even because the house is comparatively untapped, the buyer credit score market dimension is already north of US$185 billion. That mentioned, it has all the time been a problem right here as a result of lenders have by no means been in a position to attract holistic conclusions about debtors primarily based on restricted and fragmented data. However with these knowledge 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 folks again in control of their monetary futures.