Cars in a showroom

Using data and analytics to increase NPL recoverability

Pepper Advantage introduced best-in-class systems so BAF could improve performance rates and plan for future growth. Our systems allowed the finance provider to predict consumer behaviour and drive productivity – for BAF and its customers.

About Bussan Auto Finance


Bussan Auto Finance (BAF), which was established in 1995 in Indonesia, primarily provides loans to service the country’s huge motorcycle market. Currently there are 91 BAF branches and 55 points of service throughout the region, and the organisation employs around 6,500 people. Initially it provided loans for Yamaha motorbikes specifically, but has since expanded its offer to include products across multiple two- and four-wheel marques. It also provides sharia-based financing products, and loans for electronic and household equipment, as well as agricultural machinery.

As BAF expanded and grew its product offer, it needed to bring onboard a non-performing loan specialist. The finance company approached Pepper Advantage because of its extensive experience in managing consumer loans across multiple asset classes, including performing, re-performing and non-performing loans.

Non-performing loans (NPLs) – where borrowers are not fulfilling their financial commitments in accordance with contractual agreements – can negatively affect a lender’s ability to generate new financial packages. With high levels of NPLs, it was imperative that BAF put in place systems to predict market trends and consumer behaviours, and generate greater recoverability.


Managing customers’ financial lives

In a relatively young market, with millions of unbanked or partially unbanked people whose credit needs are not being met, it was important that any partner brought on board understood the complexities of operating in the region, and the unique requirements of people looking for loan arrangements.

Pepper Advantage has considerable experience in meeting the needs of people often overlooked by traditional lenders – a key demographic for BAF – and for helping them live productive, well-managed financial lives.
We take real-time global and regional data and transform them into valuable information, so that lenders can make insight-driven decisions to benefit their businesses and their customers’ financial experiences.

By partnering with Pepper Advantage, BAF had immediate access to the latest data and analytics, expert teams and back-office systems, which enabled it to predict consumer behaviours and trends and drive productivity. Our knowledge of the region, our understanding of the idiosyncrasies of the local market, and our expertise in unsecured loans meant that we were ideally placed to help BAF transform its business prospects.


Instant access to expert teams and systems

The Pepper Advantage team worked alongside BAF employees on the ground to make significant improvements to its procedures, including using consumer profile analytics more productively, and revising call timings and call scripts. We introduced a fluid omnichannel solution to increase contact rate, which led to significant gains in recoverability, and we provided service-quality and anti-fraud monitoring. Automated reporting back meant that all team members had the latest intelligence at their fingertips, improving employee efficiencies, too.

By working with Pepper Advantage’s integrated collection services, BAF had no need to increase its own collection and analytics teams, or to invest in expensive best-in-class intelligence systems. By leveraging our people, systems, expertise and experience significant savings were able to be made, as well as transforming recovery rates and improving operations across the board.

BAF said: “Our market is unique and brings with it its own set of challenges. Pepper Advantage has always understood that a one-size-fits-all approach wouldn’t work. Its expertise and presence in our region made it a natural bedfellow; its slick operations and expertise has meant that we’ve been able to focus on growing our business in a much more calculated fashion.”