1. Startups

Fineoz Offers AI-Based Platform for Credit Risk Assessment

Still bootstrapping, planning to raise a series A fund this year

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. Various credit scoring players in Indonesia are offering the technology they have developed to solve this issue. One of them is Fineoz.

This startup was founded by Anis Radianis who has a strong interest in this industry, starting from his research on the use of AI for the market unbanked. Fineoz started his journey when Anis was involved in several research and projects related to artificial intelligence in European companies in 2015.

There too, he began development Fineoz before finally settling on to be brought to Indonesia last year. “The establishment of Fineoz in Indonesia can make it easier for the community unbanked nor underbanked to be able to receive a loan," he told DailySocial.

He stated the consumer unbanked in Indonesia has reached more than 100 million people or nearly 60% of potential debtors. Therefore, he believes that the use of AI technology for credit assessment can be a solution. Without technology, the issue of limited access to the community unbanked will not be resolved.

CEO and Founder of Fineoz Anis Radianis / Fineoz

Products and monetization

Fineoz has various products that assist credit risk assessment, including AiCheck, a credit check service by validating the identity of prospective customers; AiScore, Fineoz's AI-based credit scoring product to assess potential customers' credit risk; AiCredit is a product to determine the best credit price for prospective customers; and AiCare which provides optimal credit payment methods for prospective customers.

The latest innovation released by Fineoz is IDAlternative Score, the result of collaboration with Pefindo Credit Bureau and is ready to be applied to all financial service institutions in Indonesia. Anis said that Pefindo has a lot of non-credit data, but the data has not been used optimally.

Pefindo admitted to himself, it turns out that 30% of people who apply for loans in financial services cannot get a score because there is no credit history.

This synergy product will use non-credit data in processing credit risk assessments. Information on prospective debtors will be received directly through digital channels from government agency data, public institutions, and organizational data. As a result, financial institutions can easily expand the scope of prospective debtors and reach the public without having to have a previous credit history.

“The partnership relationship with Pefindo takes the form of: partnerships, which we give technological support (application) and also experts. We provide alternative data for Pefindo. Meanwhile, the IdAlternative Score product will be marketed by Pefindo, which targets financial service institutions so that they can reach the public unbanked. "

The partnership between the two parties will be continued in the next development. In the near future, IdAlternative Score will leverage leading telecommunications data for the credit scoring component. Then next year, will take advantage of some of the payment and transaction power on the platform E-commerce.

For its monetization, all products developed by Fineoz use the concept application as service or pay as you go. Financial services institutions only pay according to the demand they need. The more data Fineoz holds, the more the credit scoring needs. "With that, the monetization process will run according to need."

Next target

Anis claims that by utilizing AI technology, Fineoz credit scoring takes less than five seconds with an accuracy rate of up to 85%. The assessment received is also easier to understand because it uses the White-Box Algorithm.

More Coverage:

Not only that, the value obtained is also adjusted to the ability of prospective customers to pay loans. The company utilizes a variety of data sources because it has collaborated with telecommunications providers, such as Telkom and Indosat, as well as several legal alternative data sources in Indonesia. This ability is expected to bring Fineoz more striking than similar players.

Its partnership with Pefindo, is expected to be a stepping stone for Fineoz's journey in Indonesia. Anis said the company will enter into more partnerships such as telecommunications companies, E-commerce, and utilities to enrich the data so that the assessment results are sharper. Even the company is already planning to expand to Southeast Asia.

He also mentioned that this year the company will start raising series A external funding which is expected to be completed soon. “Fineoz funding is still with bootstrapped, using funds from friends and family. However, starting this 2020, Fineoz plans to fund fundraising institutions for series A," he concluded.

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