Experian, 3 Indonesia to boost financial inclusion in indonesia

The partnership is part of Experian’s ongoing efforts to uplift financial inclusion across the archipelago. The collaboration sees 3 Indonesia becoming an alternative data partner to Experian’s PowerScore, a credit assessment approach that combines ‘ready-to-use’ alternative data with adaptive learning, providing lenders with telco-backed insights to facilitate credit risk decisioning.

Aimed at supporting traditional banks, alternative lenders, and fintechs determine or mitigate credit risk, a key focus of PowerScore is to empower unbanked and underbanked communities with fairer access to credit, boosting financial inclusion efforts. As a key telco player in Indonesia, 3 Indonesia coming onboard as a partner expands Experian’s market reach in-country at a timely moment, with the financial impact of COVID-19 continuing to reverberate throughout the economy. While significant progress has been made towards reducing economic inequalities, data from UNICEF indicates individuals living below the national poverty line, low and middle-income earners, as well as small businesses, could potentially face financial challenges due to a contracting economy and ongoing pandemic restrictions, potentially limiting their access to formal financial services and funds.

Experian is envisioning PowerScore, backed by alternative data sources from telcos as well as new digital touchpoints, to be the catalyst for a more responsible risk-based lending approach. Telco data from providers such as 3 Indonesia represents a rich, real-time source of alternative data that can help lenders make more accurate lending decisions.