Alternative Credit Scoring: Enabling Financial Inclusion of the Underserved – A Research report by LTP

Technological innovation and information explosion has enabled the dynamically evolving financial services industry to solve everyday problems for millions of people across the globe. Also, there has always been the search for new sources of revenue – especially in the lending market.

The biggest challenge for lenders is to assess the creditworthiness of applicants, so as to avoid the risk of bad debt. Traditionally, leading players like Experian, TransUnion and Equifax calculate the credit scores based on a person’s historical financial and repayment data, which is stored by credit bureau across the world. Almost everything, from loans to rental homes, is given based on a person’s credit score.

However, there is one major problem here.

For over 4.5 billion ...

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