BLOGS
In Asia, We Need to Calculate Credit Scores Differently to Help Women Get Loans
A great credit score is crucial to secure loans. But traditional credit scoring models put many women at a disadvantage. It’s time for a new model.
Maintaining a good credit score is vitally important for accessing finance in much of the world. Credit scoring models study past relationships between borrower characteristics and behaviors and loan repayment to predict how today’s borrowers will repay.
Most banks’ historic data was collected in ‘traditional’ credit underwriting processes—based on the analysis of financial statements, credit history and collateral, as well subjective judgements of the borrower’s perceived ‘character’.
In Asia, We Need to Calculate Credit Scores Differently to Help Women Get Loans
A great credit score is crucial to secure loans. But traditional credit scoring models put many women at a disadvantage. It’s time for a new model.
Maintaining a good credit score is vitally important for accessing finance in much of the world. Credit scoring models study past relationships between borrower characteristics and behaviors and loan repayment to predict how today’s borrowers will repay.
Most banks’ historic data was collected in ‘traditional’ credit underwriting processes—based on the analysis of financial statements, credit history and collateral, as well subjective judgements of the borrower’s perceived ‘character’.
