In Indonesia, an emerging market with a growing middle class, most consumers have historically struggled to build their credit scores properly. As a result, many are unable to fully realise true upward socioeconomic mobility via access to loans and other financial instruments beyond savings accounts. This has been due in part to a lack of public clarity.
While the nation’s credit bureaus do have the information consumers would need to be empowered, for the most part, there has never been a user-friendly way to pull out one’s credit information and then make informed decisions about how to improve their standings before walking into a bank and applying for a loan. In Indonesia, nine out of every ten loan applications are denied.
AC Ventures in partnership with Boston Consulting Group, BCG X, and the Indonesian Chamber of Commerce and Industry, recently released a landmark sector report titled “Harnessing the Power of (Gen)AI in Indonesian Financial Services,” exploring the adoption and impact of Gen AI in the country’s financial sector, offering strategic advice for business leaders on integrating the new tech into their products and operations.
One of the most interesting case studies in the report was that of Skor Technologies (Skor). The fast-growing company has emerged as a pioneer in democratising access to credit and financial information. Co-founded by Ongki Kurniawan in 2022, Skor has grown to become instrumental in helping local consumers effectively manage their financial health.
Ongki recently joined an episode of ACV’s signature podcast Indonesia Digital Deconstructed to discuss Skor’s flagship product SkorLife and how it is allowing Indonesians unprecedented control over their credit data. A substantial part of this includes the firm’s creative use of AI and Gen AI.
“SkorLife is the first credit builder app in Indonesia, bringing control back to the users on their credit information,” Ongki explained. “This platform not only enables access to one’s credit data but also assists users in managing, understanding, and disputing their credit information. It’s a useful tool that aims to reshape how Indonesians engage with financial institutions.”
Ongki’s professional background spans multiple tenures at multinational financial and management consulting firms like Citi Group and BCG, but also senior roles at tech giants such as XL Axiata, Grab, and Stripe. These experiences furnished him with a deep understanding of the technological advancements and regulatory nuances of Indonesia, which he then went on to apply to the unique credit challenges faced by millions of Indonesian consumers.
“One of the core challenges is that the pace of technology has not been matched by the pace of regulatory frameworks in Indonesia, creating a variety of barriers that we need to navigate,” Ongki said, emphasising the ideal of technology and regulation moving in lockstep to fully empower local consumers.
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SkorLife has seen impressive user engagement, with over 1.5 million app downloads and approximately 750,000 users accessing their credit reports through its platform. These figures are a testament to the app’s utility and the local demand for more transparency in the financial sector. The platform’s growth has been fuelled organically since its inception, significantly boosted by social media and word-of-mouth, highlighting the community’s growing trust and reliance on SkorLife.
On the AI front, SkorLife aims to cut its customer service costs by 50 per cent. As this accounts for 40 per cent of its total operating expenses, the team has introduced Gen AI assistance to offer continuous, round-the-clock support. This system uses transaction data, spending categories, and individual usage patterns to power a conversational AI interface. This interface provides users with personalised insights and recommendations to improve their credit profiles.
Ongki also pointed out the broader implications of Skor’s services: “This is about more than just understanding one’s credit score; it’s about equipping individuals with the knowledge to make informed financial decisions, thereby fostering a more financially literate society.”
Looking forward, Skor is committed to expanding its societal impact and refining its offerings. For Ongki, the near-term focus is increasingly geared toward open banking in Indonesia – a system that facilitates the secure exchange of customer data between banks, financial institutions, and third parties. This will allow non-financial companies (think e-commerce players like Shopee, Tokopedia, Bukalapak, and others) to embed customised financial services directly into their platforms. To give an example, imagine being able to apply for a bank loan quickly via Lazada’s mobile app while shopping for your kid’s back-to-school supplies.
Skor aims to enhance the financial well-being of millions across Indonesia by continuing to collaborate with regulatory bodies and financial institutions.
In a market full of opportunities yet challenged by issues like fraud and slow regulatory updates, Skor innovates. Ongki encapsulated this mission: “Our journey is about continuous improvement and adaptation, ensuring every Indonesian has the tools to secure a better financial future.”
Listen to the full episode on Spotify, and Apple.
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Image credit: AC Ventures
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