CREDIT SCORECARD IMPLEMENTATION IN AGRICULTURAL PEER-TO-PEER (P2P) LENDING: A CASE OF PT BERKEMBANG

• Main Author: Rizyamesa, Agiananta
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/49268
• Institution: Institut Teknologi Bandung

Amidst the echoing of financial inclusive policy from Indonesian government, there are many startup companies in Indonesia which offers fast and accessible financial services, which are called Peer-to-peer (P2P) Lending. PT Berkembang is one of the registered P2P lending company in Financial Services Authority (OJK) and focused in agricultural financing. Borrower preliminary assessment is one of their main business model process, therefore assessment efficiency becomes a crucial activity. However, PT Berkembang does not have a standardized credit scoring system at the moment. A credit risk scorecard would improve their efficiency in assessing new applicants. Based on the issue, author developed a credit risk scorecard model through knowledge synthesizing methodology. The knowledge synthesizing was conducted within 25 previous studies about credit scoring and guided by the concept of 5C’s of credit (character, capacity, capital, condition, and collateral). Furthermore, author also conducted content analysis through the current assessment of PT Berkembang and focus group discussion (FGD) to complete the scorecard. The scorecard development results that there are 13 indicators relevant for the credit scoring assessment PT Berkembang. The 13 indicators already covered all of the elements of 5C’s credit and dominated with character and capacity aspects. Moreover, it is also found in previous research that character and capacity hold the most important role to determine the creditworthiness of borrower applicant. This research offers a new credit scorecard model, specifically for P2P lending in productive loan sector, which consider both financial and non-financial indicators. Therefore, PT Berkembang will have a standardized scorecard assessment suited with financing in agricultural projects and able to perform a better assessment process.