Amartha Launches "Ascore.ai", an Alternative Credit Scoring Service for Individuals and Institutions

Services microfinance marketplace Amartha launches its newest initiative Ascore.ai. Take advantage of technology machine learning, the platform is designed to provide a risk profile measurement solution (credit scoring) accurately and holistically. Through this service, the company hopes to open up opportunities for various business sectors to reach a more massive market share.

Ascore. ai developed as an alternative to credit scoring built on more than 1 million Amartha's ultra micro entrepreneur partner for the last seven years. The company has used this technology for risk measurement in disbursing loans to unserved or unserved segments underserved.

The alternative credit scoring model has been regulated by the OJK through the Digital Financial Innovation policy (regulatory sandbox).

Founder & CEO Amartha Andi Typhoon Garuda Putra said that his party saw a huge opportunity to catalyze the informal economy sector through technology. There are around 20 million MSMEs in Indonesia that are still not served by formal financial services, because Profiling risk is difficult to measure.

"Through Ascore.ai technology, various business sectors and institutions are expected to be able to use this service, and have the opportunity to expand their market reach to a more massive market share, one of which is the informal economy sector," he said.

This solution is expected to produce output in the form of risk values, calculation of loan interest, data processing, and decisions that affect the business. That way, it can encourage more businesses to understand their market share, and allow for wiser decision making.

Target institutional and individual market share

The Ascore.ai solution can be used by both institutions and individuals. For the institutional segment, services are available in the form of risk verification, credit underwriting, advance credit analysis, and checking customer credit. Services can reach sectors fintech, microfinance/financing institutions, banks such as BPR and BPD, cooperatives, agriculture, to marketplaces with product options paylater and loans.

Taufan also revealed that Amartha has collaborated with various companies stakeholder starting from banking and sector fintech to digitize MSMEs in Indonesia. Amartha helps financial institutions to reach the grassroots segment, without the need to develop technology credit decision solution own.

"It is hoped that with this solution, there will be more institutions that can expand their reach to a massive market share such as MSMEs. This can also help increase financial inclusion," continued Taufan.

In the individual segment, Ascore.ai provides services in the form of calculating risk profiles and credit score simulators. Later, users can access the Ascore.ai website to consider the results of the risk profile calculation to identify their profile before deciding to apply for a loan to a formal financial institution.

“With holistic services, Ascore.ai is expected to be able to reach a more massive market segment, not only for institutions but also for every individual who needs financial services. Amartha is optimistic that Ascore.ai can encourage financial inclusion and become a catalyst for MSMEs to transform into digital businesses and compete in the global market,” concluded Taufan.

There is still a large public credit disparity unbanked and underbanked, need credit scoring method or credit scoring which adjusts the profile of the prospective customer. In addition to Ascore.ai, there are many special applications developed for credit assessment in Indonesia, such as ScoreLife, myIdScoreand Fineoz.

Since its inception in 2010, Amartha strengthen their commitment to provide access to capital, especially for women entrepreneurs who have been unbanked and underbanked.

Last March, Amartha celebrated her success in reaching one million micro-entrepreneurs. During its 12 years of existence, the company has distributed working capital of more than 7,5 trillion rupiah to more than one million women micro-entrepreneurs in 35.000 villages in Indonesia. In addition, the company managed to maintain a stable NPL quality below 0,5 percent.