Pefindo Biro Kredit Launches "IdTelcoScore", Credit Scoring Analysis Based on XL Axiata's Cellular Data

Pefindo Credit Bureau released the latest alternative scoring based on non-credit data "IdTelcoScore", utilizing the cellular number of XL Axiata users to analyze debtors' creditworthiness. Cellular telecommunication data is considered to be one of the important alternative data due to its significant growth and massive amount.

In the online launching today (18/8), President Director of Pefindo Credit Bureau, Yohanes Arts Abimanyu, explained that IdTelcoScore will support and facilitate financial institutions to analyze credit applications for prospective debtors with nothing or short credit history as a basis for decision making.

"As part of our mission to increase financial inclusion, especially access to finance for underbanked and unbanked people, where the potential is quite large. It is possible through telco data with wide coverage,” he said.

Pefindo Credit Bureau created this product from the calculation of the score modeling algorithm using various data variables and indicators that produce predictive information on the character and ability to fulfill future debtor obligations.

IdTelcoScore utilizes big data analysis from the use of telecommunication company services. Whether it's data subscription (subscription), data usage (usage), and billing & payment (billing & payment). These data will be combined with available credit data, therefore, it can be used as a measurement for an individual's ability to pay their obligations in the future.

"Following the results of the Telco Score modeling that KS and Gini Ratio have positive results, it can be concluded that the telco model provides predictive results and is suitable to be used to adjust the 'risk appetite' of each financial institution."

Yohanes also ensured that all cellular number data accessed through IdTelcoScore would not leave the operator's system. What comes out of the system is only the telco score calculation. "We always prioritize data protection and security by using information security standards."

He also said, in the midst of a pandemic, financial institutions must optimally utilize all types of data, both credit and non-credit to obtain a complete, accurate, and predictive picture regarding the character and risk profile of the debtor. The goal is to ensure that the credit portfolio and NPL level are well maintained.

Big data institution sources

Furthermore, Pefindo Credit Bureau will continue to increase collaboration with other big data companies, therefore, data sources are getting richer. Not only with XL Axiata, but also with other telecommunication operators.

Yohanes said that currently there are plans for collaboration or exploration with companies that manage other big data such as utilities and e-commerce. "In fact, I can't mention the name of the company. In terms of social media, we are yet to use it as alternative data."

In its journey of developing alternative scoring data, Pefindo collaborates with many non-technology companies such as DGT for tax identity data, APPI for write-off status, Taspen, and BPJS Ketenagakerjaan. All of these companies have big data that can serve as alternative data for analyzing debtor creditworthiness.

Meanwhile, Pefindo Credit Bureau currently has more than 300 corporate users who come from various financial institutions, fintech, to non-financial institutions.

– Original article is in Indonesian, translated by Kristin Siagian