Organisation Overview

PT. Pegadaian is a financial services institution and also an Indonesia’s legally recognised sole pawnbroker that provides pawn-based loan and several savings and loan co-operatives services. There were more than 4,200 branches in 2020. As a state-owned enterprise besides acting as business entity, PT. Pegadaian also has an obligation to support government program in the effort to increase mid to low class society welfare through main activity of pawning credit distribution. Both activities make PT. Pegadaian an unique business entity.

Business Challenges

The efficiency of credit approval process is one of the challenges PT. Pegadaian was facing in optimising operational efficiency and making accurate credit approvals. The credit approval process of PT. Pegadaian was mainly operating manually which requires excess time and effort to input client data, access to customer credit risk, and make loan approval decision.

The Solution

PT. Pegadaian decided to enhance their credit approval process with KewScore from KewMann:

• Ensure accurate customer risk rating with hybrid adaptive models which is proven to be significantly accurate than the traditional scoring models.
• Access to deeper insight about the customers by leveraging on alternative data like publicly available external data and other additional data points

The Results

With the integration with KewScore, it addresses Pegadaian’s needs to:

• Optimise credit risk scoring accuracy, reaching up to 93% of accuracy
• Enhance entire credit risks approval process from hours to minutes