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Astra Group's fintech will lower its approval rate

14 May 2019 12:01

JAKARTA. PT Astra WeLab Digital Arta (AWDA) will lower the approval rate on online loan platform Maucash.

For information, AWDA is a joint venture of PT Sedaya Multi Investama (SMI), a subsidiary of PT Astra International Tbk (ASII) and WeLab, a P2P Lending company from China. AWDA was established in September last year. SMI owns 60% of AWDA shares, while WeLab has 40%.

Indra Gunawan, Commissioner of AWDA, said the approval rate determined by his party was 6%. He claimed that his party still relied on 2 of its flagship products, emergency loans and 3 month-loans. "Because fintech is an industry that requires quick approval," Gunawan said on Monday (13/5) when met by idnfinancials.com.

Gunawan explained that the high approval rate actually encourage the growth of bad loans. Although from the user side, Gunawan claimed that Maucash users had reached 90 thousand in 6 cities.

Gunawan admitted that AWDA would lower the Maucash approval rate to 3%, to reduce the risk of bad credit. "We will be tuning the engine scoring to find the approval rate for Indonesia," Gunawan said. (KR/AR)

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