2021 Press Releases

September 10, 2021

Experian Partners with 3 Indonesia to Boost Financial Inclusion in Indonesia

Experian – a leading global information services company announced that it had entered a partnership with Indonesian telecommunications provider, PT. Hutchison 3 Indonesia (3 Indonesia), as part of its ongoing efforts to uplift financial inclusion across the archipelago. The collaboration sees 3 Indonesia becoming an alternative data partner to Experian’s PowerScore, an advanced credit assessment approach that combines ‘ready-to-use’ alternative data with adaptive learning, providing lenders with telco-backed insights to facilitate credit risk decisioning.

A key focus of PowerScore is to empower unbanked and underbanked communities with fairer access to credit, boosting financial inclusion efforts by assisting traditional banks, alternative lenders, and fintechs in determining or mitigating credit risk. As a key telco player in Indonesia, 3 Indonesia joining Experian as a partner expands Experian's market reach in-country at an opportune time, with the financial ramifications of COVID-19 still reverberating throughout the economy. While significant progress has been made in reducing economic inequalities, UNICEF data show that individuals living below the national poverty line, as well as low and middle-income earners and small businesses, may face financial challenges as the economy contracts and pandemic restrictions remain in place, 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.

“3 Indonesia strives to be more than a telecommunications provider and is constantly exploring avenues through which we can deliver meaningful impact to the communities we serve. Experian demonstrated a clear understanding of our requirements, with PowerScore having proven its analytics capability to deliver high quality insights with alternative data to make it possible for the lending ecosystem to reach more Indonesians. We also believe that 3 Indonesia capabilities to provide strong network coverage will help unbanked populations to access growing numbers of financial services and products, especially those that are provided via mobile phone. Our network is available in more than 37,000 villages, 4,000 districts, and 377 regencies in Sumatra, Kalimantan, Sulawesi, Java, Bali and Lombok. We are enthusiastic about our partnership with Experian as their data partner and look forward to deepening our collaboration in the coming years”, said Dolly Susanto, Chief Marketing Officer Hutchison 3 Indonesia.

Based on the National Financial Literacy and Inclusion Survey by Financial Services Authority (OJK), Indonesia has made notable strides in financial inclusion, boosting the rate from approximately 50 per cent in 2017 to 76.1 per cent in 2019, an increase of almost 40 million individuals. In a population numbering more than 273 million, an unbanked community of 23.9 per cent remains significant. The Indonesian government recently shared a target of achieving financial inclusion levels of 90 per cent by 2024, viewing it as a cornerstone of economic growth and stability. The digital transformation that has spearheaded Indonesia’s dominance as one of the region’s biggest and fastest growing digital economies can create opportunities to close the financial accessibility gap with a technology-led approach.

“Experian PowerScore was designed to help make access to financial services more equitable and accessible with alternative data and is a solution highly relevant during this period rife with economic uncertainty. This collaboration with 3 Indonesia facilitates the growth of responsible risk-based lending that will provide individuals and businesses alike with much needed capital to support long-term, sustainable, economic recovery and growth across Indonesia,” said Mohan Jayaraman, Managing Director, Southeast Asia & Regional Innovation, Experian Asia Pacific. “Supporting and boosting financial inclusion for Indonesia has been a key objective at Experian. Our latest endeavour with a like-minded partner reaffirms our continued commitment to this goal, working towards opening opportunity and upward mobility for the unbanked and underserved consumers.

Experian's latest collaboration with 3 Indonesia is the company's second with Hutch's telecommunications entities. Experian previously worked with Hutch Sri Lanka in 2020 to provide dynamic airtime advances as the country went into lockdown, assisting subscribers in adhering to movement and safety measures while remaining connected.