Bank International Indonesia-Card Center approaching its two years experience in issuing Visa and MasterCard credit card has enjoyed a very rapid growth in number of cardholders reaching approximately 40.000 by the end of 1990.

For 1991 BII-Card Center has set a goal to increase the number of additional 60.000 making a total of 100.000 cardholders in combination of both Visa and MasterCard.

Although the percentage of bad debt account from the present population is quite small, with significant increase projected for 1991 it is anticipated that the risk of high percentage of bad account may also increase if a careful but speedy method of evaluation to the applicants is not well established.

A proposed point-scoring model has been developed by the Group Field Project-Institute Pengembangan Management Indonesia through the quantitative analysis of the available historical data and weighted average of questionnaires collected from the credit analysts/account officers as well as interviews with BII- Card Center personnel. Lastly, the relevant literature study on statistical analysis method and credit management through IPMI

Due to limited number of samples and lack of readily available information used in the analysis the Group do not feel confident to recommend the proposed "point scoring model" as go/no-go gauge in approving or rejecting the application. Further review of the model is therefore suggested after one-year trial and database is improved.

In view of an 'ambitious' goal to capture huge number of card- holder in 1991, BII-Card Center may have to take risk approving an applicant not reaching the minimum required total score but a careful and regular review of such cardholder need to be maintained in order to minimize potential risk. Pararel to this suggestion, an introduction of Visa/MasterCard domestic Card may be considered an alternative solution.



Research location: Bank Internasional Indonesia

Supervisor: Timothy J. Malloy, MBA

Accepted: 6 December 1990