The ways of working out who to trust in the world of credit have changed with over the years. Let’s look at the history of credit scores.
The Global Findex report from the World Bank shows account ownership is increasing but credit inclusion remains a challenge.
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 Financial inclusion is stifled by the fact that lenders rely on outdated systems such as credit files and bureau credit ratings and scores.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 […]