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: 

• Abonnement (profil, durée, produits, offres groupées)
• Utilisation (schéma d'appel, appareil mobile, paiements P2P/micro, installation de l'appareil)
• Facturation (modèle de rechargement prépayé, services SVA, crédit de rechargement, retard de paiement postpayé, suspension et recouvrement)
• Autres (localisation, itinérance à l'étranger, modèle VOC, téléchargements d'applications financières)

#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: 

• Données démographiques
•  Données sur le contenu
•  Données de réseau
•  Messages SMS

#3 Financial Score 

Parmi les facteurs qui influent sur le crédit, citons les retards de paiement, les comptes les plus anciens, l'utilisation du crédit, les demandes d'informations difficiles, le solde total et le crédit disponible.

• Portefeuille ou Mobile Money
•  Banques/MFI
•  Bureau de crédit

#4 Transaction Score 

Le score de transaction est calculé sur la base des achats effectués sur différents canaux.

• E-commerce
•  Historique des achats
•  Transactions au point de vente
•  Paiements des commerçants

#5 KYC Score 

Score calculé sur la base du degré d'identification et de vérification du client.

• Vérification et validation sur le terrain
•  Correspondance des visages et détection de la vivacité

#6 Info Score 

Ce que vous possédez et combien vous gagnez détermine votre Info Score qui est calculé sur la base de vos revenus et de vos dépenses en services publics.

• Données sur l'utilisation des services publics - énergie, gaz
• Données sur les biens - propriété, location
• Emploi - Revenu / Salaire

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.