Credit Scoring is a tool that takes into account a set of variables and assumptions in evaluating the creditworthiness of an individual or a business. Traditionally it is based on the applicant’s past behaviour and credit history such as credit card spending, income statement, and loan trails. Traditional variables and methods that are taken into account for credit scoring have been proven to exclude many individuals and businesses that are underbanked or have no credit history. Given the advent of innovation and the use of technology, alternative data and methods have been applied in order as part of the Alternative Credit Scoring (ACS) to improve access to credit for the excluded population. ACS utilizes alternative data from transactions made on e-commerce sites, social media platforms, electronic transactions, and cellular data. This would entail building efficient credit infrastructures incorporating alternative data in credit reporting and a broader guaranteed scheme that empowers alternative credit providers.

This webinar will look at sharing the latest survey findings on alternative data for MSME credit scoring, deliberate on the challenges which include privacy and security concerns of alternative data, regulatory, legal usage of data and market perspectives of alternative data for MSME credit worthiness.

Should you have any questions regarding this event or how to participate, please contact SMEFWG@afi-global.org.