Reach More Qualified Borrowers With Alternative Credit Scoring
Go beyond traditional credit records to assess more customers, improve credit decisions, and confidently expand into new markets.
Leverage the Power of Alternative Data for Credit Scoring
In the Philippines, the traditional credit scoring process requires a borrower’s socio-demographic profile and financial history. This includes their age, employment status, gender, marital status, and educational attainment — among others. But what about the underbanked and people who do not have financial records or bank accounts to prove their creditworthiness?
In 2022, the Philippine Statistics Authority and the Land Bank of the Philippines opened their doors to 8.4 million Filipinos without bank accounts. While this made it possible for 5.8 million people to open transaction accounts, the country still has a sizable unbanked population.
So what about the underbanked and people who do not have financial records or bank accounts to prove their creditworthiness? Enter the power of alternative credit scoring.
Alternative credit scoring holds great potential in expanding access to credit, even for the unbanked. Alternative credit data, such as telco data, enables banks to get a more comprehensive snapshot of a borrower’s credit behavior and potential risk, even if they do not have credit history. This is extremely crucial in a lending environment where a growing number of customers are credit invisible, and the competition for new customers is fierce. Alternative credit data also provides lenders with a current and comprehensive visibility into consumer risk, allowing them to deliver smart and optimized products and services.
Benefits of Alternative Credit Scoring
Improved assessment of creditworthiness
Many lenders reject loan applications from individuals with a low credit score. With alternative data credit scoring, they get a better and more comprehensive view of the applicant’s creditworthiness. By analyzing other data such as frequency of phone “load” top-ups and monthly bills payment patterns, lenders can determine which applicants are less likely to have problems in repayments. The rich suite of information provided by alternative credit scoring helps in making informed decisions without compromising on their company’s risk exposure.
Enhanced customer experience
By using alternative data for credit scoring, lenders can reduce loan origination costs which they can pass on to borrowers in the form of lower interest rates. In the same vein, borrowers who have previously been sanctioned loans with unfavorable interest rates (due to lack of adequate credit history) can be reassessed using their digital footprint. Alternative credit data provides an innovative medium for lenders to correctly assess the risk levels in lending and offer the right tools to the underwriters and analysts to deliver loan products that a win-win for both parties — the lenders and the borrowers.
Increased market reach
Customer profiles such as students and young professionals often find it difficult to obtain loans due to gaps or issues in their credit scores. Financial inclusion in the Philippines can be achieved through alternative credit scoring, which creates a niche for lenders who are willing to extend their products to specific target groups, particularly those who are unbanked and individuals with bank accounts but no credit history. With alternative data credit scoring, they can strengthen their loan application case. If they make timely payments of bills, charges, and other household expenditures, then they have a high chance of securing loans even with a low or non-existent credit score.
Frequently Asked Questions
Everything you need to know before integrating Telco Data Credit Score.
Experience
the Difference
Empower your lending decisions with FinScore’s Telco Data Credit Score. Analyze over 400 telco data variables for accurate credit assessments, enabling broader financial inclusion and enhanced fraud detection.
Make informed decisions to reach underserved markets and safeguard against fraudulent activities with confidence.
Inclusive Access
Expand credit access with fair lending tools. Promote financial inclusion and empower underserved communities confidently. Trust in reliable assessments for all applicants.
Precise Assessment
Make informed decisions with accurate tools. Trust in reliable credit assessments based on comprehensive data analysis and predictive modeling. Ensure lending integrity.
Fraud Detection
Protect your institution with advanced detection systems. Prevent fraudulent activities and ensure lending security. Safeguard against fraud risks confidently.
Streamlined Profiling
Efficiently profile risk and streamline lending processes. Enable faster decisions and effective risk management. Enhance lending efficiency with confidence.
Frequently Asked Questions
Learn more about how Telco Data Credit Score works, its benefits, and compliance with data privacy regulations.
Build a Stronger Borrower Base
With Better Credit Insights
Join 50+ leading banks and fintechs using FinScore to reach every Filipino borrower—confidently.
Get in Touch With The Team
For more information and inquiries about our telco data scoring system, contact us today.
