Get to know who credit invisibles are, what being credit invisible means, the challenges they face especially in the United States (US), and the best solutions to financial including them.
US credit invisible population vs Rest of the world
Almost 3.5 billion people in the world are excluded from the formal financial sector and most of them are unbanked. By examining other countries like Nigeria, France, India and Colombia with different credit invisible demographics, identify patterns and insights on the steps that can be taken in the US to address the financial inclusion problem.
How to use alternative credit scores and different technological solutions
Other markets have addressed the issue of financial inclusion and highlighting a few common enablers on technology, regulation and financial literacy. Assessing creditworthiness using psychometric and behavioural data provides supplemental information about applicants despite a lack of sufficient traditional data.
Understand how these solutions can be applied and its benefits and risks
Using alternative data in credit decisions presents potential benefits such as helping many consumers establish a credit score or improve their existing one. However they also present potential risks like resulting in discrimination or violation of fair lending laws and creating data privacy risks that could violate consumers’ privacy. Steps have since been taken to address these issues.