Analysis of credit scoring model using financial and non-financial variables for customer assessment in telecommunication company

Linggar Asa Baranti

Universitas Indonesia Conferences, The 4th International Conference of Vocational Higher Education

Linggar Asa Baranti

Last modified: 2019-06-28

Abstract

In 2018, DBS, one of division of PT Telkom, closed the year by 79% in collection rate. This rate had been declining from prior years. Compared to other divisions in Telkom, DBS also had the worst rate. This number has inflicted financial loss to Telkom of IDR 580 Billion. Low collection rate mostly caused by bad customer assessment which is done in the beginning of sales process. This research is determined to give better alternative in the customer assessment process by implementing credit scoring model. As the first step, several variables in financial and non-financial, which are estimated to affect the customer worthiness. In order to find the best combination to develop the model, some of the variables later would be eliminated by using multivariate tests. Then, the model will be developed from those variables by using logistics regression method. This model has to be assessed by several statistical tests in order to see how accurate the model is. As the result, there are 3 financial and 3 non-financial variables which can develop the model. Moreover, it has been proven that the model developed could represent the real condition, thus can be implemented.

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