Consumers, all around the world, are now borrowing more than ever. The need for a better lifestyle, meet the luxury aspirations, and improve quality of life – has motivated consumers to borrow readily. This has evidently given rise to the need for faster, effective and secure credit scoring. AI-based algorithms are the perfect answer to fraud risks, and the need for delivering a  better borrowing experience. 

Since all borrowers cannot behave and think the same way – their creditworthiness cannot be determined with a fixed set of parameters. Your scoring system has to be widespread and must consider a 360-degree data collection and analysis. 

#1 Telecom Score 

Telecom data has good correlation with credit risk estimation of possible default in the future it must include the features of: 

• Suscripción (perfil, duración, productos, agrupación)
• Uso (patrón de llamadas, dispositivo móvil, P2P/micro pagos, instalación de dispositivos)
• Facturación (patrón de recarga de prepago, servicios VAS, crédito de recarga, pospago vencido, suspensión y recuperación)
• Otros (ubicación, itinerancia en el extranjero, patrón VOC, descargas de aplicaciones financieras)

#2 Social Score 

Data available through smart phones based on browsing history and personality analysis help in determining social score. This can take into account: 

• Datos demográficos
•  Datos sobre el contenido
•  Datos de red
•  Mensajes SMS

#3 Financial Score 

Algunos de los factores que afectan al crédito son los pagos tardíos, las cuentas más antiguas, el uso del crédito, las investigaciones, el saldo total y el crédito disponible.

• Cartera o dinero móvil
•  Bancos/MFI
•  Oficina de crédito

#4 Transaction Score 

El puntaje de las transacciones se calcula en función de las compras realizadas en diferentes canales.

• E-comercio
•  Historial de las compras
•  Transacciones en el punto de venta (TPV)
•  Pagos a comerciantes

#5 KYC Score 

Puntaje que se calcula en función de cómo se puede identificar y verificar al cliente

• Verificación de campo y validación
•  Coincidencia de rostros y detección de actividad

#6 Info Score 

Lo que posee y lo que gana rige tu Info Score, que se calcula en función de sus ingresos y gastos de utilidad

• Uso de datos de servicios– Energía, Gas
• Datos sobre los activos - propiedad, locación
• Empleo - Ingresos / Salario

If the lending system takes into account these prominent scoring metrics, they are covered against the risks of frauds upto a high extent. Effective credit scoring can help safeguard against impersonation frauds, instant validation, false salary validation, instant data extraction, etc. 

All these metrics together reflect the score in the form of credit score cards. A higher credit score means a lower risk of default. Applicants with a good payback history are often likely to have a good credit score. 

It is Recommended for Applicants to Keep A Track of Their Credit Record

Credit scores and reports can be easily calculated for individuals. Keeping a good record of the credit score helps boost the confidence of the applicant. This can easily be compared with the instant and automated credit report card generated by AI-powered solutions. These can be mapped for a smooth transition and approvals for loan origination. 

Automated Credit scoring systems are fast empowering banks, telecoms, Wallet service providers, and consumer lenders towards instant and accurate credit scoring and faster than ever loan processing.