As digital adoption continues to accelerate in Indonesia, lenders are finding it challenging to identify the fast tracking of real time and updated data sources of online transactions. The country will witness a notable growth in digital transactions by 33.2 percent year on year to Rp 337 trillion this year from approximately Rp 253 trillion in 2020. Having said this, Indonesia’s lack of reliable data to make credit decisions has caused inefficiencies in the financial ecosystem. This has initiated the need to look into alternative data which will provide a visual direction of the financial credibility of borrowers in the country. It will also give lenders an overview of payment defaults within a controlled risk. Alternative data is proven to complement traditional credit scoring methods which will inevitably lead to the increase of the number of consumers’ creditworthiness in the population. It is common practice for lenders to look into alternative data when a borrower has no ... » Learn More about Alternative data to financially boost Indonesia’s population
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While the digital adoption in Indonesia continues to accelerate, largely due to the COVID-19 pandemic, the fast-tracking has posed a challenge for lenders, especially when it comes to real-time and updated data sources related to online transactions. A lack of reliable data on the latest consumer profiles has caused inefficiencies in the credit decision-making ecosystem from a traditional credit data report standpoint. This has been evinced by various moratoriums and payment holidays. It has therefore shaped a need to have more alternative, real-time, updated sources of data to shed more light – and complete a more representative and holistic view – on the latest and updated risk profiles of consumers and businesses. The inherent information asymmetry on borrowers, especially the underbanked segment, makes it challenging for lenders to provide credit without facing high or unknown risks. Experian, the world’s leading global information services company operating in 45 ... » Learn More about Turbocharging the future of new data sources, transforming credit access in Indonesia
SINGAPORE: There is a tongue-in-cheek joke that the coronavirus did far more for digital transformation than any company’s most well-intentioned Chief Innovation Officer (CIO) or Chief Technology Officer (CTO). Because of COVID-19 we saw mass adoption in telecommuting, increases in on-demand food and services and a spike in virtual platforms like Google’s Hangout and Microsoft’s Teams and while Netflix added 15.8 million subscribers from January to March alone as the pandemic-linked lockdowns forced people to stay at home. Slack added over 9000 new users in the first months of the pandemic and Zoom shares rose 112 per cent. Schools of all levels utilised video-conferencing programmes and e-learning while grandparents jumped onto mobile-based payment platforms like PayNow to minimise physical contact with cash-based payment. The local banking scene also made strides with the awarding of four local digital banking licenses. A consortium of Grab-Singtel was awarded a full ... » Learn More about Commentary: Forget digital banks – many still prefer the trip to the branch
You’ve seen the ads, or maybe had it suggested by a mortgage banker or two: take out a home equity loan, and you could be sitting on a six-digit pile of cash a few months later. Sounds too good to be true? It depends – home equity loans are one of the main advantages of owning a private property; but there are cases where it may not be entirely appropriate. Here’s how to decide whether it’s worth taking one: Caveat: In all matters of personal finance, always consult a professional – such as a wealth manager or financial planner – before deciding to take on significant loans. The following is meant to inform you of home equity loans as a financing tool only; get expert advice for the final word on whether it’s right for you. What’s a home equity loan? Sometimes called a cash-out, this is when you take out a loan that uses your property as collateral. The interest rate, just like a mortgage, tends to be lower as it’s a secured loan. But also like a mortgage, it does mean the ... » Learn More about When should you consider using a home equity loan?