The Use of Technology to Analayze Customer in the Millennial Era.

In the technology era, multi-finance company in Indonesia have to adapt and change their way customer profiling. According to Indonesian demographic data in 2019, millennials are the main market for multi-finance. There are 66 million millennials in Indonesia.

In the same year, there are only 23% of Indonesian who have access to available financial instrument, 26% Indonesian have bank account only to receive their salary, and more than 50% of Indonesia don’t even have an access financial instrument.

This fact is a problem if multi-finance company only use conventional reporting to analyze their customer. It is almost impossible to analyze those people using conventional reporting.

That is why, Adicipta Inovasi Teknologi (AdIns) created AdIns Executive Business Gathering 2019 seminar. This event was held in Hotel JW Marriot, Jakarta, at November 14, 2019, with Tobias Hartana, Head of CONFINS Cloud Adins as speaker. He shared how to analyze millennials market and be able to give credit decision.

According to Google report in 2019, Indonesian economic transaction is the largest, and have the largest growth in Southeast Asia. The largest transaction in Indonesia is e-Commerce.

Tobias Hartono said, “internet transaction in Indonesia has been grow 6x times in the last 4 years and will reach USD 18 billion in 2025.” Thanks to millennials who really use e-commerce in Indonesia. Tobias Hartana shared the way to analyze customer behavior effectively and efficiently using ekyc.

Users by Age

The largest internet transaction users in Indonesia is millennials. The Millennials users contribute up to 40% of total transaction in Indonesia. Then, the second largest users are generation Z. This Generation Z will be a huge prospect in the future.

Users by Income

Most e-commerce users are those with middle-tier income. After that, it is those with low-mid tier income with 32%. Since we have e-commerce transaction data, we can analyze based on their spending habits.

Users by Area

Most e-commerce transactions happen in the big cities such as Jabodetabek. After that, it is Bandung, Surabaya, and Semarang. Tobias Hartono estimates that in 2022, 50% of total e-commerce transaction will happen in the small cities or even villages. 

Internet Use

Tobas Hartono predicts that 80% of Indonesian, or about 220 million people, will do e-commrce transaction in 2022. This spending habit will be useful as analysis tools. The digital transaction number will be very huge.

Payment Using Digital Money

About payment, 30% of total e-commerce users are using e-wallet. Tobias Hartono predicts that in 2023, those number will jump into 50%. E-Wallets with most users in Q2 2019 are Gojek (Gopay), Ovo, and Dana.

The Benefit of Customer Behavior Change Analysis

Tobias Hartono shared the benefits of using customer behavior change analysis. The information from e-commerce data can be used as insights to know about market demand and their spending capacity. Company doesn’t need any surveyor to get data and verify them.

With all those data in e-commerce platform, it is so easy to conduct spending behavior and habit from the e-commerce users. With this analysis, the data will be a lot more accurate and quicker.

Tobias Hartono said with all those secondary data, multi-finance can easily take all users data and use those data as insight to help multi-finance company analyze customer’s credit.