Jan. 13, 2021 /PRNewswire-PRWeb/
-- Bank Rakyat Indonesia (BRI) -- the world's largest
microfinance institution and Indonesia's biggest bank -- launched its own
in-house artificial intelligence (AI) platform called BRIBrain in
Powered by the group's proprietary machine learning
technologies, BRIBrain stores, consolidates, and analyzes
information from various data streams across BRI Group and partner
ecosystems to improve credit scoring and loan approvals
BRIBrain was launched because Indonesia has more than 64 million micro,
small and medium enterprises (MSMEs) that employ 97% of the
workforce, or 117 million people. However, only 12% of these MSMEs
have access to bank loans.
This situation has been exacerbated in 2020 by the Covid-19
pandemic, as more than half of Indonesia's MSMEs have been forced to close
temporarily and lay off workers due to lower demand.
In addition, the safety concerns related to in-person
transactions means there is increased pressure on MSMEs to not only
get quick access to funding to stay afloat during an economic
downturn, but also operate in a safe, fully-online manner.
BRI President Director Sunarso said: "Indonesia's MSMEs need working capital to
survive during difficult times but also to thrive afterward, and
they need it now. As the world's largest microfinance institution,
we have a responsibility to answer this call. Our credit portfolio
is worth more than US$66 billion and
MSMEs represent 80% of it. As such, BRI Group is answering this
call with BRIBrain."
He added, "With BRIBrain, we have accelerated underwriting and
loan disbursement so that now MSMEs can get their loans approved in
just two minutes. This is significant compared to a two-week period
previously. This process is also now fully online, where it was
only semi-digital before."
"Even Bank BRI's first-time MSME customers can take advantage of
faster loan approvals, as they can open a BRI account online in a
safe and socially-distanced way, without even needing to visit a
branch office," said the President Director. According to Sunarso,
through digitalization, BRI Group is on a mission to accelerate
financial inclusion throughout Indonesia and contribute to the National
Economic Recovery program set by the Indonesian government.
Enhanced risk management framework
BRIBrain has been implemented across the four pillars of BRI
Group's risk management framework: Credit Scoring (BRIScore),
BRILink Score for agent banking, Customer Profiling, and Internal
Fraud Score. Cutting the average credit approval time from two
weeks to two minutes is unthinkable for most institutional lenders
around the world.
BRI Group is one of the few that has actually done it with tech.
Using a large swathe of historical credit and transactional data,
BRIBrain has vastly improved the credit scoring process to build
more precise BRIScores for potential borrowers, while dramatically
shortening the loan approval process.
BRIBrain provides what the company calls an 'augmented brain' to
loan officers so they can make instant decisions to improve their
sales pipelines in the field. They can easily open a webview portal
of BRIBrain and find their sales pipeline with its scoring, product
recommendations, and churn analysis.
On the agent banking side, Agen BRILink is a nationwide network
of "branchless agents" designed to reach rural customers. BRIBrain
enhances Agen BRILink's real-time evaluation system by creating
quick and precise BRILink Scores. The AI platform also helps BRI
Group identify suitable customers who can be onboarded as BRILink
agents. It's also worth noting that these BRILink agents are
playing a significant role in distributing government and social
aid to communities affected by Covid-19 across the archipelago.
With regards to customer profiling, BRIBrain draws on a trove of
data to furnish customers with relevant information and product
recommendations. Internally, BRIBrain also ensures real-time
updates to customers' Internal Fraud Scores by analyzing fraudulent
practices and predicting fraud potential based on transaction
Bank BRI managing director of digital, IT, and operations Indra
Utoyo said, "As Indonesia's biggest digital bank, AI plays a
pivotal role in BRI's digital transformation. BRI is the first bank
in Indonesia that utilizes AI in
its risk management framework, across credit scoring, product
recommendation, merchant assessment, and fraud detection
"We are also the first bank in Indonesia to be certified internationally for
Big Data. With BRIBrain, the nation's largest lender is now also
the fastest and most innovative," he added, sharing the ISO number
Augmenting the digital ecosystem
Indra Utoyo, BRI Group's Managing Director of Digital, IT, and
Operations, said BRIBrain helps the group improve its risk
management features across all of its digital products, including
digital lending app Ceria and open banking initiative BRIAPI.
"BRIBrain's tech has augmented our Ceria app, which targets
e-commerce transactions and millennial consumers. Since its launch
in the first quarter of 2020, Ceria has seen loan portfolio growth
of 6x year-on-year," said Utoyo.
Using fast verification times, facial recognition technology,
and in-app credit plans, Ceria is leveraging the growth potential
of Indonesia's e-commerce sector,
which is set to reach US$82 billion
in total value by 2025. Meanwhile, BRIAPI is an application
programming interface (API) that allows integration between third
party applications and BRI services. Since its inception in 2018,
BRIAPI has handled more than US$2.5
billion worth of transactions from more than 200 partners
throughout the country.
Utoyo said, "With a cheap, fast, and secure transactional API
that is now enhanced by BRIBrain's AI and machine learning
capabilities, BRI Group sits at the forefront of open banking in
About BRI Group
Bank Rakyat Indonesia (BRI Group) is the largest microfinance
institution in the world and Indonesia's biggest digital bank. It is one of
the nation's leading commercial banks and the country's largest
lender by assets. Bank BRI is the longest-standing bank in the
country, first established in 1895, now with more than 9,400
branches throughout the country. Digital Centers of Excellence
Division of BRI is committed to providing customers with innovative
services and solutions for modern banking needs.
For more information or to arrange interviews, please use the
contact information below.
PT Bank Rakyat Indonesia (Persero) Tbk
Digital Centers of Excellence
Andrew Lawson, BRI Group, +1
SOURCE BRI Group