Alternate credit scoring: Expanding the horizons of lending
Why should you read this?
The lending ecosystem has changed drastically from yesteryears when lenders had to rely on written applications and reams of printed documentation that were painstakingly and manually reviewed to determine creditworthiness. But while there has been an spurt in digitized scoring, a majority of the global population remains credit invisible due to minimal data that can inform lenders on whether these individuals qualify for a loan or not.
This paper examines some key shifts in the money lending industry with a focus on alternate credit scoring. It highlights how telecom data is a proverbial gold-mine of alternative data that can radically enhance accuracy and coverage of alternate credit scoring models.