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Latest news & insights

Begini & Mifos Webinar

Webinar: Tuesday 16 April Credit where it’s due Credit inclusion through modern alternative data.  Attend SPEAKERS Ed Cable CEO. Mifos David Higgins Title, Mifos James Hume CEO, Begini James Florence CTO, Begini Access to fair financial services means access to opportunity. However, legacy financial services are not meeting the needs of individuals, entrepreneurs and small businesses around the globe, leaving millions underserved and financial businesses missing out on a significant market.  With a focus on using modern technology to drive financial inclusion, Begini and Mifos are both leaders in their respective fields.   Begini offers modern alternative data insights to drive access to credit. Behavioural data analytics is the only universal credit score. Begini’s behavioural data analytics solution can be used

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Empowering Financial Inclusion in Vietnam

The role of next-gen credit models In the bustling streets of Hanoi, where vendors hawk their goods and entrepreneurs dream of scaling their businesses, lies a tale of untapped potential. Vietnam, with its vibrant economy and dynamic population, holds promise for growth and prosperity. Yet, for many, accessing financial services remains a challenge, hindered by traditional credit risk models that fail to capture the full spectrum of an individual’s financial potential. For those pursuing financial

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9 trends shaping credit assessment this year

  1.    Inclusion of Diverse Data – there’s no alternative. Spurred by a combination of factors, Lenders are actively looking to include more and different types of data in decisioning processes. In recent years the limits of legacy credit data has been exposed. While exact models vary, legacy bureau credit scores consider the last 5 to 7 years of credit repayment history. This system advantages certain people, and in turn excludes many others. Legacy data

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Aprovechando la IA y el aprendizaje automático para la evaluación del riesgo crediticio: exploración de fuentes de datos alternativas

El acceso a un crédito justo es el acceso a la oportunidad. Los originadores de crédito tienen una enorme responsabilidad a la hora de decidir quién tiene acceso a esa oportunidad. Esta es la razón por la que la evaluación del riesgo crediticio desempeña un papel crucial en la industria financiera, ya que permite a las instituciones evaluar la calidad crediticia de los prestatarios. Tradicionalmente, la evaluación del riesgo crediticio se basaba en datos financieros

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Harnessing AI and Machine Learning for Credit Risk Assessment: Exploring Alternative Data Sources

Access to fair credit is access to opportunity. Lenders hold enormous responsibility for deciding who has access to that opportunity. This is why credit risk assessment plays a crucial role in the financial industry, enabling lenders to evaluate the creditworthiness of borrowers. Traditionally, credit risk assessment relied on historical financial data and credit scores. However, the advent of artificial intelligence (AI) and machine learning (ML) techniques, coupled with the availability of alternative data sources have

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7 conclusiones sobre economía conductual, psicometría y ‘nudging’

Por Rodrigo Rocha  La psicología y las ciencias del comportamiento pueden ayudarnos a comprender el papel que desempeñan nuestro carácter y personalidad en nuestros procesos de toma de decisiones, especialmente las elecciones que afectan nuestra vida financiera. Se ha demostrado que comprender la importancia del carácter conduce a mejores resultados en el campo del crédito y cobranza tanto para los consumidores como para los proveedores de servicios financieros.  Aquí hay 7 conclusiones de la mesa

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7 takeaways on Behavioural Economics, Psychometrics and Nudging

Psychology and behavioural sciences can help us understand the role our character and personality play in our decision-making processes, especially the choices that impact our financial lives. Understanding the importance of character has been shown to lead to better outcomes in the field of credit and collection for both consumers and financial services providers.

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the 3 c's of credit

The 3 C’s of Credit

The three C’s are Character, Capacity and Collateral, and today they remain a widely accepted framework for evaluating creditworthiness, used globally by banks, credit unions and lenders of all types.

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Fair credit, from A to Gen Z

This article explores the unique personality characteristics of Generation Z, also known as iGen or Centennials. From their tech-savvy nature to their social inclusivity and purpose-driven mindset, discover what sets this young adult demographic apart from their predecessors.

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What an alternative credit score should never check

Predictive credit insights with zero personal data. Credit scores are changing, considering more diverse data than ever before. But while more data can be considered, not all of it should be. Personal information does not need to be shared for an alternative data credit assessment. Today, financial businesses are incorporating new data sources, such as behavioural analytics or open banking, to build a more complete picture of whom they lend to, WITHOUT the need for

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Hablando de datos alternativos

¿Cómo se pueden aprovechar los principios de la personalidad y de la economía conductual en el mundo de la evaluación del riesgo de crédito? Ese fue el tema de discusión en la conferencia Ciclo de Riesgo celebrada recientemente en Colombia. Vea la ponencia de Begini a través del Head para Latinoamérica – Rodrigo Rocha. https://youtu.be/a1eaunCYl14 English translation:  How can the principles of personality and behavioural economics be leveraged in the world of credit risk assessment?

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UK Focus: Shifting economic conditions 

UK regulator, the FCA (Financial Conduct Authority) has this month written directly to more than 3,500 lenders in the UK to “remind them of the standards they should meet as consumers across the country are affected by the rising cost of living. With household bills expected to continue to rise into the autumn, it is important that firms act now to make sure borrowers struggling with payments and customers in vulnerable circumstances can access the

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The future of lending is first-party data

In a data-rich world, it is increasingly important to know how to select the best data source for each process.   What is the difference between first-party and third-party data?   And why are some lenders moving to first-party data for risk assessment?  Let’s start with some definitions  First-party data is data that you create or collect directly from / with your customer, always with their consent. It is data that you own. This data may

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What is a psychometric assessment?

And how can it help your credit score? If we want to measure temperature, we use a thermometer. But how can we measure variables like knowledge and attitudes? We use a psychometric assessment. The term ‘Psychometrics’ sounds intimidating and complicated, but essentially it refers to the ability to measure psychological traits. Psychometric assessments can objectively measure abilities, skills, knowledge, attitudes or personality traits.  Once these traits are measurable, they can be analyzed and investigated to

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11 trends shaping credit assessment this year

1.    Inclusion of Alternative Data Spurred by a combination of factors, Lenders are actively looking to include more and different types of data in decisioning processes. Notably the fallout from lockdowns in recent years has exposed the limits of traditional data. While exact models vary, traditional bureau credit scores consider the last 5 to 7 years of credit repayment history. This system advantages certain people, and in turn excludes many others. Traditional data leaves many

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Regional Focus: Credit inclusion in Africa

Africa is one of the most diverse continents in the world. Home to more than a billion people and making up the largest free trade area on the planet. The continent is rich in natural and human resources and has the potential to build on these to drive inclusive growth. The diversity of the continent is reflected in the rates of financial inclusion and digital connectivity. With over 50 countries, the region is home to

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Finalist – Most Sustainable Start up

We’re pleased to be recognised as a finalist in Finnovating’s Most Sustainable Startup Awards. Sustainability is central to our mission at Begini. We believe in giving credit where it’s due. Access to credit is access to opportunity. Finnovating is a global platform of over 70,000 FinTech startups, corporations & investors to collaborate, invest and scale globally. Want to know more about our solutions? Leave us your details and we’ll be in touch.

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A question of character for SME lending

Getting to know the ‘missing middle’? ?Micro, small and medium enterprises (MSMEs) are the lifeblood of economic growth; however, they need investment to thrive, and often face the same tough due diligence requirements as larger enterprises. Lenders often rely on limited data to make credit decisions, giving them little insight into who they are really lending to. Character can predict small business success. For example, studies have shown that small businesses operated by someone who

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Does your personality change over time?

“People don’t change!” It’s a common expression, but is it true? Can our personalities change over time? How much? When we talk about personality, we are referring to individual differences in characteristic patterns of thinking, feeling and behaving. Psychologists have been studying and finding ways to measure personality for decades. Recent studies have looked at whether your personality changes during your life and how that affects your behaviour and decision making. The results suggest that

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Regional Focus: Credit inclusion in Latin America

Latin America and the Caribbean is a region of diversity and contrast. While it is home to hubs of innovation and technology, challenges to financial inclusion persist. Access to financial services varies widely between regions and segments of society. It is reported that 45% of the adult population do not hold a bank account and only 12% of the population are reported to hold any savings. With such a large proportion of unbanked, and underbanked,

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What is a thin-file customer?

The financial systems, and the world of credit, have long been ruled by processes that entrench inequality. Financial inclusion is stifled by the fact that lenders rely on outdated systems such as credit files and bureau credit ratings and scores. These processes may serve those with a thick-file well, but this leads to the exclusion of millions of people around the world. Those with a thin file are left unable to access credit and miss

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Putting the S in ESG 

Access to credit is access to opportunity. For too long there has been a lack of access to both for millions of people. The traditional bureau credit score is based on limited data. The system advantages certain people, in turn discriminates against many others. The credit playing field is far from level today. It entrenches financial inequalities in the system.   The term ESG has been floated around since the 1960s, but has recently taken on

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Global Open Finance Challenge

The future of finance is open Begini has been accepted to take part in the Global Open Finance Challenge. This initiative is being driven by four of the world’s leading banks – NAB, Banco Itaú, NatWest Group, and CIBC – and we are looking forward to engaging with their innovation teams in the coming weeks. The Global Open Finance Challenge is about finding new perspectives, fresh ideas and talent. Partnership will be at the heart

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Why lenders should consider alternative data in credit scores

Lenders have traditionally relied upon a limited set of data to make lending decisions. Typically a credit file contains information relating to a person’s financial history. It gives detailed information in relation to how people have historically handled their credit responsibilities and this has been used as a way for lenders to mitigate any risk to them. The information in a file is used to produce credit scores for those looking to borrow. The higher

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