In KoinWorks we work so hard to improve our services and underwriting quality.

That’s why we use many sources of data to qualify our borrowers, besides we are also using sophisticated artificial intelligence.

These are our benchmarks:

• Business financial
• Supporting documents
• Personal financial history
• Borrower reputation
• Brand reputation and customer interaction
• Social media connection
• Our platform partner
• Third party vendor
• Logic check

Check & Balance (special cases & audit)

• Telephone interview
• Special check with our partners
• Field review

Other criterias

• Industry trend
• KoinWorks loan portfolio

Our credit scoring is done really well by human and artificial intelligence.

We keep doing improvement gradually to improve our AI algorithm and make automation process to improve our speed and quality of service.

These are our quality standard when determining and analyzing borrowers:

• We evaluate our borrowers’ character with few methodologies. Our evaluation focuses on selecting borrowers that can be responsible and able to pay the capital and interest of their loan. These have been done by analyzing borrower behavior on our platform, association evaluation, business reputation, credit history and other factors.
• We analyze borrowers financial situation in order to decide if borrowers will be able to pay the loan. We do simulation with normal and special conditions, like when the borrowers are having financial problems, either because of the business itself or the industry..
• We verify the data that our borrowers give when they are applying for a loan. These are including business identity, location, financial condition and others. We do this with cross verification with multiple sources, including our partners and third party vendors.
• We analyze the business performance in the future, the growth, sability, reputation and any other historical aspects. We also look at the bigger picture, like the industry condition.

We try to improve all of our qualification aspects in our app. We are consistently adding more data sources to enhance our analysis quality.

However, information most of the time is not perfect, especially in Indonesia.

So we are only able to do qualification based on available data.

As an illustration, almost 80% Indonesian are categorized as underbanked and do not have a bank account.

As a result, only a small part of the population have official financial history, most of them are not.

Because of our mission is to enlarge our scope of services to more people, we will keep providing services to borrower that does not have an official financial history. We will make alternative judgement to qualify that kind of borrower.