Indonesia’s credit bureaus currently have about 92 million credit records, but the founders SkorLife says that many people have trouble accessing their own data. That’s why they built the app, which not only allows people to view their credit history for free, but also offers personalized advice on how to improve their data. The Jakarta-based startup announced today that it has raised $2.2 million in pre-seed funding.
AC Ventures participated in this round, including Saison Capital and angel investors like all of OneCard founders; Advance.ai’s Jefferson Chan; KoinWorks ‘Will Arifin of KoinWorks; Krishnan Menon of Lummo; Evermos’ Arip Tirta by Evermos; Qoala’s Harshet Lunani; Init-6’s Willy Arifin; Krishnan Menon of Lummo; Evermos’ Arip Tirta; Qoala’s Harshet Lunani; Init-6’s Achmad Zaky; and executives from Northstar Group, Stripe, Google, Boston Consulting Group, Gojek and CreditKarma.
SkorLife says the private, alpha version of their app has been downloaded more than 3,000 times and is growing organically by 50 to 60 new users every day. That surpasses its internal goal by 7 times, and the app will soon be available for public download. The company’s new capital will be used for product development, new hires and marketing. SkorLife currently has 10 employees, with plans to increase the number of employees to 40.
CEO Ongki Kurniawan was previously the country head of Stripe Indonesia and has also held leadership positions at Grab, telcoXL Axiata and Line, while COO Karan Khetan is a serial entrepreneur with startups Previous businesses include 5x and BookMyShow Southeast Asia. The two met in 2018 when they established a partnership between Grab and BookMyShow to provide ticketing services through Grab’s super app.
Kurniawan told TechCrunch that the two spent a lot of time exploring different ideas. The first was to digitize the “pawnbroker”/secured loan industry, but unit economics didn’t work.
“However, we found that many Indonesians use pawnshops because they believe they will be rejected if they approach banks,” he said, adding that seven out of 10 applicants loan is actually declined. “This is further corroborated after speaking with several industry experts. We are told that Indonesia’s source of consumer loans is small. “
While doing their research, Kurniawan and Khetan also found that many Indonesians do not have access to their credit scores and other data that would help them see how banks determine their creditworthiness. , which means they lose access to affordable loans.
SkorLife’s founders say creditworthiness is being abused in Indonesia, where most financial institutions rate a person’s ability to get a line of credit based on their “worth of income”. .
“The thing to remember is that not everyone with a high income will pay off debt, and not everyone with a low income will not pay,” Kurniawan says.
Kurniawan said that most people in Indonesia are unaware that they can access their own credit history and credit score, and believe that only financial institutions and banks have access to that information.
If they figure out how to access it, they have two options. The first is the toll-free route, where they request data from OJK (Indonesian Financial Services Authority). But the problem with this is that they have to go to the OJK office or wait days for an online appointment. The second, paid method involves the customer visiting three licensed credit bureaus in Indonesia to receive their credit report. But these reports cost money, and Kurniawan says they are many pages long “and are not designed to be understood by consumers as they are used by analysts in financial institutions.”
SkorLife solves those problems by giving people free access to a credit score they would have to overcome barriers to get. Its main product is a credit building app that allows anyone to instantly view and track credit scores, credit reports, and other data from credit bureaus for free. It also helps users dispute incorrect information on their credit report. If someone doesn’t already have a credit history, the app will help them start building a score.
Through the app, customers can view their BI Test Score or Indonesia’s nationally recognized credit information used by most financial institutions to make credit decisions, as well as their scores. their credit, created by credit bureaus to determine how likely someone is to default in the next 12 months.
They also looked at what factors influenced their credit score, including payment history, credit usage, balances against secured and unsecured credit accounts, and age of each account. their credit, track IDs to see if the financial institution is making it difficult to check their data, the total number of credit accounts they have, both active and inactive, and outstanding balances.
That data is then used to generate personalized, AI-driven insights for each customer that they can use to improve their credit score. The app also has educational content and a feature that makes it easy for customers to dispute inaccurate data.
Some examples of insights include payment history and allowing customers to check bill dates and set reminders, credit periods (or encourage customers not to close long-opened cards), and use. SkorLife recommends that customers keep their credit card usage limit below 30% to improve their scores.
In a statement, AC Ventures founder and managing partner Adrian Li said, “The opportunity in Indonesia is huge. Even if the space is relatively untapped, the size of the consumer credit market is already north of $185 billion. That said, it’s always been a challenge here as lenders have never been able to draw overall conclusions about borrowers based on limited and fragmented information. But with these troves of data just waiting to be unlocked and meaningfully used in a consumer-facing app, we’re excited about SkorLife’s vision and mission of bringing people back. responsible for their financial future.