As the world of financial services continues to advance and grow, a substantial portion of individuals and small businesses remain inadequately served with financial products. This underserved group encompasses ‘thin file’ customers, who have little or no credit history, small and medium enterprises (SMEs), and young and female demographics in emerging economies.
The answer to achieving fair and accessible finance for these populations lies in the ethical acquisition and utilisation of alternative data. This includes information on telecom and utility usage, previous mobile or small loans, data on related parties, and self-reported data — all of which ideally obtainable through credit bureaus.
