digital fraud management technology to access Indonesia’s 181 million unbanked and new-to-credit pop16 Jun 2020 15:50
https://www.gbgplc.com/newsroom/gbg-credolab-indonesia/
JAKARTA, June 16 2020 – GBG (AIM:GBG), the global technology specialist in fraud and compliance management, identity verification and location data intelligence today announced a technology partnership with CredoLab, the leading developer of bank-grade digital scorecards based on privacy-consented and permissioned smartphone metadata, to easily and confidently assess the creditworthiness of any Indonesian individual, including the unbanked and underbanked. While banks in Indonesia have tapped on local bureaus, telcos, and e-commerce providers for data to perform credit and fraud checks, data continues to be fragmented and unreliable, contributing to high non-performing loans, low approval rates and a high level of fraud. This technology partnership will help brick-and-mortar and digital banks deterred by a lack of data to leverage on mobile phone digital footprints to process banking and credit applications and provide financial empowerment to all new-to-credit, new-to-bank, and gig economy workers of the country.
Of the nearly 400 million adults in Southeast Asia[1], only 104 million are fully “Banked” and enjoy full access
to Financial Services. Another 98 million are “Underbanked”, with a bank account but insufficient access
to credit, investment and insurance, while 198 million remain “Unbanked” and do not own a bank account. Millions of small and medium enterprises also face large funding gaps. 50% of 181 million Indonesian are eligible for bank and credit services, yet do not have access to financial products due to the lack of historical bank record or full-time employment such the “Ojol”, app drivers.
"We are very excited with this partnership between GBG and CredoLab. By assimilating metadata on consumers’ digital footprint and behavioural intelligence into GBG Instinct digital fraud management platform, we are seeing an uplift in credit and fraud risk protection by up to 40%. This convergence between mobile credit scoring and digital fraud technology helps established and digital banks and lenders onboard quality customers within the financially excluded population,” said June Lee, Managing Director of APAC.
GBG offers an end-to-end digital fraud and compliance solution for banking and non-banking financial institutions looking to onboard and transact with their customers quickly, safely, and securely. With GBG Instinct, banks, lenders, and mobile wallets can leverage an orchestration layer to perform multiple data callouts to CredoLab’s cloud service hosted in Jakarta. It only takes seconds, as opposed to days, to analyse mobile behavioural data and calculate the risk score for any individual to be onboarded.
The result is of the partnership sees an uplift in scorecard predictiveness by up to 39.9%, drop in cost of risk by up to 21.9%, and increase in approval rates of up to 32%.
“Banks and lenders always grapple with the question of “can a customer pay back” a
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