Heaptalk, Jakarta — Digital transformation in the financial sector has become a critical strategy for businesses to remain competitive. Besides improving business performance, digital innovation can also deliver improved customer service.
The Director of Information and Technology at Credit Bureau Indonesia (CBI), Ivan Irawan, emphasized this point during an interview with Heaptalk (10/17); he explained that leveraging digital technology allows financial institutions to offer faster and more accurate credit solutions tailored to customer needs.
“Digital transformation is essential to enhance customer service. We can deliver more personalized and precise services using advanced technology, including data analytics and machine learning. This effort aligns with the unique needs and risk profile of individual customers,” he said.
Regarding customer data, Ivan elaborated that CBI integrates alternative data into its credit reporting processes. This alternative data includes utility records, telecommunications data, rental information, income verification, e-commerce transactions, and investment data.
“The alternative data can be invaluable for potential borrowers with limited or no traditional credit history. However, alternative data still poses several risks regarding data accuracy, quality, legality, privacy, and compliance,” Ivan conveyed.
Credit Bureau Indonesia amplifies Data Privacy
Furthermore, Ivan emphasized that CBI will safeguard data privacy. With this scheme, CBI obtained ISO 27701 certification and became the first credit bureau who achieve it before Indonesia’s Data Privacy Law was enacted. This certification aims to ensure that the company’s practices align with the law on personal data protection.
“Most importantly, personal data belongs to individuals and is processed with their consent. We ensure that any data we manage has been authorized for use by its owner in credit processing,” He stated.
CBI also adheres to strict data storage policies. The company implements its technology for data storage rather than cloud solutions. According to his statement, this measure follows the Financial Services Authority’s (OJK) policy to build data infrastructure on-premise rather than cloud services, as cloud storage does not guarantee the specific data location.
The company continues to develop applications that enable it to meet the unique necessities of its customers. He also highlighted CBI’s competitive advantage over foreign competitors. CBI benefits from processing data sourced from OJK, which allows it to offer a comparative perspective in credit scoring.
“Interestingly, we are mostly owned by domestic investors. Unlike other alternative data providers that may rely on a single data source, such as telecommunications data, we have broader, more reliable sources,” Ivan remarked.
In addition to these strengths, Credit Bureau Indonesia (CBI) is recognized for its fast service delivery. The company operates at a 99.9% reliability level, with credit reporting services completed in under two seconds.
Ivan also discussed the rising popularity of digital banking. “Digital banking is becoming increasingly popular for financing without needing to visit a physical bank,” he concluded.
