Results After Joint Business with Indonesia's Top Credit Bureau, Pepindo
"Risk Management for Financial Firms Entering Indonesia... Contributing to Expansion of Corporate Lending and Deposit Business"
AI technology finance company PFCT announced on the 2nd that it has acquired Indonesian alternative credit scoring (ACS) company AI4C. PFCT will now be able to conduct not only joint credit scoring business with Pepindo, Indonesia's No. 1 credit bureau (CB), but also ACS business.
AI4C is an institution that provides credit scoring solutions to local financial institutions by analyzing alternative data such as e-commerce transaction history, utility bill payment records, and social media activities using machine learning and AI technologies. It obtained an ACS operator license from the local financial authorities on the 13th of last month.
PFCT views this acquisition as an important opportunity to accelerate the expansion of its credit scoring business in Indonesia. In the future, PFCT plans to integrate AI4C's alternative data analysis technology with its own AI risk management solution, 'Airpack.' Through this, it aims to build and supply solutions that improve credit scoring accuracy and inclusiveness.
Small and medium-sized enterprises (SMEs) in Indonesia account for 59% of the gross domestic product (GDP) and employ 97% of the workforce. However, many face difficulties accessing financial services due to a lack of collateral and credit history under traditional credit scoring methods.
PFCT intends to enhance financial accessibility by utilizing AI4C's alternative data-based credit scoring technology. It plans to contribute to the expansion of corporate lending and deposit businesses by providing reliable risk management solutions trusted by Korean financial companies operating in Indonesia as well as local financial institutions.
PFCT has signed strategic business agreements with OK Savings Bank, KB Kookmin Bank, and Woori Finance Indonesia, which have entered the Indonesian market, providing customized Airpack solutions to expand local lending and deposit businesses. It is simultaneously expanding across ASEAN (Association of Southeast Asian Nations), including Vietnam's Lotte Finance. To strengthen its presence in ASEAN, PFCT established a Singapore corporation in July last year and an Indonesian corporation in August.
Lee Suhwan, CEO of PFCT, said, "This acquisition will be an important turning point to actively expand Korean credit scoring technology into the global market. We will contribute to the risk management of personal retail finance for Korean financial companies entering Indonesia and local financial institutions, as well as the expansion of corporate lending and deposit businesses, achieving remarkable overseas business results."
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