Fintech startup Crowdo announced a partnership with Bank Neo Commerce (BNC) to increase SME financing. This is Crowdo’s first-ever partnership since declaring itself a neobank service.
In an interview with DailySocial, Crowdo’s Group CEO, Reona Shimada explained, they offer comprehensive digital technology and infrastructure for digital banks in this partnership, and it will take a long time if it’s to be built independently.
BNC has access to technology such as an AI-powered credit scoring engine that Crowdo engine has built and trained for three years. It is said that Crowdo’s portfolio performed up to 70% better with this tool than traditional bank loans for SMEs during the pandemic.
In addition, access to the whole digital onboarding process and end-to-end underwriting, and supporting the digitization mission for digital banks. “By combining these two DNAs, it makes digital banks more efficient in their business processes. They can immediately experience the impact of the business as they get an acquisition channel,” Shimada said.
Technically, the onboarding process for SMEs in obtaining loans is done through the Crowdo platform. If the results of the assessment match the criteria targeted by BNC, then they will make the loan. Shimada explained that this approach is different from loan channeling, as is done by banks with p2p lending companies in general.
“Crowdo is more focused on digital solutions for SMEs, not just financing. SMEs can digitize their operations and get financial products. ”
In terms of monetization, Shimada was reluctant to reveal further detail. However, he said an example, in general cooperation between companies as this one usually uses commission share (share fee).
The company is expected to announced two other digital banks sooner this year. Previously disclosed, Crowdo targets to help SMEs digitize supply chain transactions worth more than Rp14 trillion and access loans and other financial products.
Through the Digitalization Platform service, it allows SMEs to open bank accounts in a simple and fast way, manage all invoices and purchase orders digitally, and request/receive payments.
Meanwhile, for financial products, there are three products, paylater (i.e. Early Payment, Micro Pay Later) and working capital loans. Early Payment or in the industry better known as invoice financing, this loan is intended for prepayments based on bills issued and purchase orders. Meanwhile, Micro Pay Later for small bills and unexpected payments.
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Original article is in Indonesian, translated by Kristin Siagian