PT Pos Indonesia Improves Financial Service in Rural Areas by Using Big Data

Do you remember when we used to write a letter to our friends and send them through PT Pos Indonesia? The moment like when we would patiently wait at home, wonder will the Postman come and deliver our friend’s mail. Then, when the postman did come, we would scream in joy.

Those were the good old days but many people still actively use PT Pos Indonesia whether to communicate by using letter or deliver some stuff.

Nowadays, we tend to rely on communicate with others by using chat apps. This means that PT Pos Indonesia needs to elevate their service by providing other products. Technology helps us in our daily lives, that are for sure but on the other hand, it’s also sad that we completely turn our head from the traditional (conventional) method such as write a letter.

That’s why PT Pos Indonesia has decided to use big data analytics to help them become more relevant in today’s digital world. There are many cases show how big data can help companies improve their products and services. PT Pos Indonesia wants to jump on the bandwagon too. Besides, PT Pos Indonesia doesn’t only operate in mail service but also several other products they conduct. With big data analytics, PT Pos Indonesia will be able to serve their customers better.

Focusing on Rural Area in Indonesia

There are tons of thing you can actually do with big data analytics. One of them is to decide which area you want to focus on. What a serious task it is. PT Pos Indonesia has already made up their mind. In December 2017, Gilarsi Wahju Setijono as the President Director of PT Pos Indonesia said that his team is planning to develop big data analytics to improve the financial inclusion in Indonesia, especially in the rural areas.

FYI, according to the World Bank, financial inclusion means that both individuals and businesses have an access to useful and affordable financial products and services that meet their needs. These include payments, savings, transactions, credits, and insurances. All will be delivered in a responsible and sustainable way.

If you’re wondering why PT Pos Indonesia has decided to focus on finance? It’s because they provide services such as bank channelling and fund distribution.

That being said, PT Pos Indonesia’s decision is not without reason. Gilarsi explains that there are only 36% of Indonesian citizens who already have a banking account. The rest of them, which is about 64% people, still don’t have a banking account because they live in rural areas which tend to don’t have any access to a new technology.

That’s why PT Pos Indonesia wants to help people in rural areas to improve their financial inclusion by using big data analytics. Moreover, many rural areas in Indonesia are actually having a great potential when it comes to financing. There are quite many small and medium-sized enterprises (SMEs) that have gained huge profit and done in big numbers.

Credit Scoring for Financing Distribution

In order to do that, PT Pos Indonesia has decided to create a credit scoring system through the big data analytics. They’re planning to work together with several financial institutions to improve their financing distribution service. According to Gilarsi, his team will utilize the data from real transactions done by people in the rural areas. However, please bear in mind that these real transactions only referred to the people’s economic activities such as daily transactions.

Those transaction data will be submitted to an analytics system. Through this system, PT Pos Indonesia will be received accurate results that can be analyzed thoroughly. After that, the result will be used to create a credit scoring system that will help PT Pos Indonesia to give people in rural areas a better access to financial inclusion.

At least a Year to Implement The Big Data Analytics Completely

In reality, many great things happen by taking some of a time not instantly. No matter how good PT Pos Indonesia’s plan has fixed in their mind, it still needs time to build. According to Kompas.comthe development of big data analytics is projected to finish by the end of this year. PT Pos Indonesia has even formed a special team to work on this special project.

Actually, PT Pos Indonesia has all the data they need to create the credit scoring system but the process to analyze them takes a lot of time and this is when big data analytics comes in handy. That’s why PT Pos Indonesia is pulling all the resource they have to develop the big data analytics.

Digiroin, an App to Help People Send The Money

Big data analytics is not only innovation that PT Pos Indonesia has created to provide a better banking service for people in the rural areas but also they currently developing a mobile app called Digital Giro Indonesia (Digiroin). This app isn’t only built for people in the country but also for Indonesian migrant workers (Tenaga Kerja Indonesia – TKI). It comes to PT Pos Indonesia’s realization that there are still many TKI who send their money via mail service.

Well, in a sense, it’s not really a bad thing but people will have to pay the 6%-7% additional fee to send money from another country to Indonesia. However, with Digiroin app, PT Pos Indonesia will be able to press down the charge up to 2% only.

Besides help people to send money from other countries, Digiroin app is also being developed to serve a better, faster, and more secure service. If it’s all according to the plan, the app will be projected and officially released this year.

As the time goes by, so does our technology. Things have changed and although we can’t stop it, we can always control our reaction and outlook toward of it. PT Pos Indonesia used to be a huge thing many years ago. Then, new technologies have emerged but they refused to back down. Instead, PT Pos Indonesia has decided to make the most out of technology to improve its service. In this case, the big data analytics help the company to create innovations. Can’t wait to see the scoring credit system and the Digiroin app being implemented this year!