Despite progress in financial inclusion, 1.7 billion people still lack access to a bank account . And globally, only 11% of people over 15 borrow from a financial institution. This lack of access to credit is problematic for livelihoods, economic development, and much more.
Credit scoring is quickly evolving in favor of greater financial inclusion. At LenddoEFL, we spend 110% of our time thinking about ways to understand someone regardless of credit history or collateral. We pull together the best new sources of opt-in alternative data that applicants can choose to share so that we can assess creditworthiness and verify identities.
One of our sources of data is behavioral and psychometric data. Read this article published in Social Innovations Journal by Javier Frassetto, our Chief Risk and Analytics Officer, to learn how it works: what traits predict creditworthiness, how do we measure them, and how do we prevent gaming.