One of the challenges faced by inclusive financial institutions when issuing loans is the lack of access to consumer credit scores. To address that issue, a number are leveraging technology and innovation to help them estimate credit risk and determine loan size by using “big data” generated by the consumers’ mobile phone.
A research was conducted by CGAP with First Access, a firm that uses data analytics to analyse the creditworthiness of microfinance loan applicants in Tanzania, to discover key insights and answer these questions through a series of testing, focus group and consumer research.
Read the full article written by Michelle Kaffenberger and Rafe Mazer published on CGAP here.
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