How to Identify Potential Borrowers through eCommerce

Identify Potential Borrowers

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How to Identify Potential Borrowers through eCommerceAccording to a Bank Indonesia report, Indonesia's eCommerce transaction volume reached Rp 403 trillion in 2021, a 51,6% increase from the previous year. It is predicted that the number will continue to grow at 31,4% YoY in 2022.    

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With such high growth, it is unsurprising that we are seeing various solutions being offered to eCommerce merchants. Among these solutions are financial services that specifically target eCommerce sellers to help them grow their business.      

However, financial services are facing a difficult time to onboard these eCommerce sellers. This is because most of their cash flow is not being recorded in bank transactions, the traditional data input for credit scoring.      

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E-Commerce sellers operate in their own ecosystem. Not only do they often receive money from consumers through the platform but they also spend directly within the platform, which means that the bulk of their transaction never reaches their bank account.      

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This means that for an effective process, financial services have to gain access to their transaction data directly from the eCommerce platforms.      

Luckily, Brick has built a connection to help financial institutions and other services to retrieve eCommerce data directly from the source.      

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How Companies can use eCommerce Data    

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P2P lenders can use eCommerce transaction data in the loan underwriting process to better understand the borrower's financial situation.  

Crowdfunding platforms can inform potential lenders of eCommerce store potential based on the traction gathered in eCommerce platforms  Financial planner can give tailored advice by assessing the business' performance from their eCommerce transaction data    

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How eCommerce Data Works

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End-user connects their eCommerce platform account and authorize client's access to their data  Client submit a request to Brick's API to retrieve the end-user's data  Brick's API response with rich transaction data from eCommerce platform  ***