Credit scoring is spreading fast through the developing world
Bank, one of Georgia’s largest, calls between 170 and 250 of her compatriots. She does not choose her targets. An algorithm crunches the credit scores of millions of Georgians, selects the best prospects and auto-dials them.
That began to change in 1956, when William Fair and Earl Isaac hit upon the idea of using data to predict the probability that a borrower would default. “Good” loans, it turned out, were correlated with telephone-ownership, longer time at the same address, longer employment in the same job and the applicant’s age. They set up a consultancy, Fair, Isaac and Company, whose product was a literal scorecard, made of cardboard, provided to banking and retail customers.
But in smaller, poorer countries with little financial infrastructure, credit-scorers have limited data to work with. They can look at payment records for services that are provided first and paid for later, such as utilities, cable-television or internet. Such proven payment data, says Michael Turner of, an American think-tank focused on financial inclusion, are a good guide to risk in the absence of a credit history.
Someone who uses taxi apps is a lower risk, says Paul Randall of Creditinfo, which also operates in several poor markets, because it suggests they have a smartphone with a payment method that they use regularly, rather than one set up for the purposes of applying for a loan. People with betting apps are higher-risk. People with friends who have bad debts may be bad borrowers themselves.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
From Kate Middleton and Prince William to Charles and Diana (and Camilla), a Brief History of British Royal Weddings—And Their Attending ScandalsFew nations can declare devotion to their monarchs on the scale the British love their royal family. When Prince William, Duke of Cambridge, married Kate Middleton in 2011, the broadcast garnered nearly 20 million viewers on BBC One, an additional nearly 23 million Americans watching across 11 different networks on this side of the pond; 1,900 family members, friends, fellow royals, and politicians attended the service. The train on Middleton's Sarah Burton for Alexander McQueen-designed dress measured nearly nine feet in length, long enough to view from the cheap seats. But throughout the years, the relationships of the royal family have been viewed with the scrutiny Americans don't even lend to Beyoncé, the closest thing we have to a monarch on this side of the pond. Back in the 19th century, it was Victoria who, during her wedding to Albert, set the tone for all white dresses to follow; the complicated web of affairs that marked the relationship between Prince Charles, Princess Diana, and Camilla Parker Bowles transfixed the nation for several decades. Though Pippa Middleton's wedding this weekend to hedge fund manager James Matthews perhaps won't be quite of the order of a royal in line for the throne, it has nevertheless captured the tabloids. On the occasion of the younger Middleton's marriage, we look back at a few of the most notable royal weddings, from reigning queen Elizabeth II to today.
Read more »
Ready To Buy A Home? Understand The Impact Of Your Credit Score FirstBefore you rush to buy a home, you will be glad you took the time to improve your credit score first. If not, you will be paying a lot more for your home than you have to.
Read more »
Best Travel Credit Cards 2019 ($625+ in Travel)Finding the best travel credit cards in 2019 can be very lucrative. Banks are competing by offering bonuses of $600+ on several products including the Chase Sapphire Preferred which is my number one travel credit card. Here is my review of the top travel credit cards 2019.
Read more »
Best Small Business Credit Cards Offers (Up to $1000 in Rewards)The best small business credit cards come with many perks and hefty bonuses up to $1,000. However, comparing the best business credit card offers is hard, there are a lot of business credit cards to choose from. Personally, I carry the Ink Preferred since it's the best Chase Business credit card.
Read more »
Best Credit Cards For Travel Miles 2019 - $750 In RewardsDeciding on the best credit cards for travel miles can help you can save money and earn travel miles for future trips. If you're a frequent or casual traveler, consider adding one of the following best miles credit cards to your wallet even if you're looking for one of the best airline credit cards.
Read more »
Trump administration to brief senators on election securityOfficials with Trump’s admin will brief senators on election security this week, according to a senior Senate aide. Wednesday’s briefing will be open to all senators and is expected to include officials from Homeland Security and the FBI
Read more »