AFPI Builds Fintech Data Center to Prevent Bad Credit

The Indonesian Joint Funding Fintech Association (AFPI) released data center Fintech Data Center (FDC) to make it easier for p2p service providers to do credit assessment when extending credit. FDC has similar functions with BI Checking from Bank Indonesia and SLIK from OJK. The release of FDC coincides with the first anniversary of AFPI.

AFPI General Chair Adrian Gunadi explained that the purpose of establishing the FDC was to make the data of AFPI members more integrated. This also clarifies the role and function of AFPI as a self-regulatory organization which accommodates the fintech p2p lending industry.

FDC also ensures that the p2p lending industry in Indonesia is healthier because it avoids the potential for bad loans, fraud, and excessive credit distribution. For this reason, AFPI requires all providers registered under the OJK to submit customer data to be entered into the data center.

"Every time there is borrowers or borrowers who want to take out a loan, the provider must check their data at the FDC. If the borrower has had a problem or not, only then can he make a decision. This must be done by the organizers," he explained, Monday (11/11).

The customer data that is entered and can be accessed at data center including TIN, KTP, and credit collectability. The name of the organizer is kept secret for the common good.

Adrian gave an example, currently there are 15 companies participating in the FDC trial. Some of the names include Amartha, Danamas, Dompet Kilat, Finmas, Investree, Kimo, KlikACC, KoinWorks, Kredit Pintar, KTA Kilat, Maucash, Modalku, Taralite, Tokomodal, and UangTeman.

From there there are some statistics that have been collected, for example borrowers individuals who borrow more than one organizer about 800 thousand people. This figure is obtained from the reduction in the number of borrowers 2,9 million people and number borrowers unique 2,1 million people.

Likewise for borrowers from a company scale. Those who borrow from more than one provider there are 3 thousand companies. The figure is taken from the reduction in the number of borrowers 19.826 with borrowers unique of 16.129.

From the data obtained data, such as there were borrowers from 73 providers but failed to pay at 21 providers or borrowed from 53 providers, but failed to pay at 49 providers. It is hoped that this can be anticipated better.

Of course, that doesn't mean that borrowing from more than one company is always bad. FDC noted that there was one borrower who had borrowed up to 111 times but had no bad credit at all.

Enrich data from other sources

Currently, all customer data must be submitted by the organizer every day towards the end of the second day of the regulator, namely the OJK Pusdafil center and the AFPI FDC. After that the exact same data will be reconciled at OJK.

Next, the organizers are required to check the data at the FDC, based on the site, before providing loans to borrowers. Here is expected to avoid the risk of bad credit and potential fraud.

Adrian explained, to keep the data from being misused by the organizers, OJK and AFPI will only give permission to check the data if the data is indeed applying for a loan or is in the process of borrowing.

If there is a violation, the association does not hesitate to revoke FDC access or revoke membership. "Beyond these two reasons, it is not permissible to check. If it is proven to have done so, we will revoke the access and cannot become a member of the AFPI anymore."

The association will require all providers registered under the OJK to submit customer data no later than the end of November 2019. The OJK noted that there were 144 registered providers. "If it's not there until the end of November, then we'll give it to you." warning."

Considering that all data is inputted towards the end of each day, as a result, the data accessed by the organizer is not real-time. He said that in the future, the association will prepare FDC to be able to present data in a comprehensive manner real-time, no later than the first quarter of 2020.

Next FDC will be equipped with data sources from other parties, such as BPJS Health and Employment, insurance, multi-finance, banking, and the capital market. Currently FDC can be integrated with BI Checking and SLIK.