Can Alternative Data Expand Credit Access?

CRIF shows how to score millions more
creditworthy consumers

MAP - Integrating Personality Type In Credit Risk Assessment

The Credit and Lending industry heavily depends on reliable information to be able to make accurate lending decisions and manage risks. One of the key sources of this information is credit reports and credit scores from credit information bureaus such as CRIF High Mark. But despite having a full data coverage of formal lending channels, Credit Bureaus with only traditional data sources miss out on data of population which is not served by the formal lenders. These include unserved or underserved individuals and even small and medium-sized businesses, which tend to be at a disadvantage when they apply for loans due to the scarcity or unavailability of reliable third-party information on them.

Alternate Data For Applicants

Introducing MAP, which is a multi-layered decision framework that utilizes Metadata Score, Application Score, Psychometric Score to assist the Loan Origination Decision System.

Metadata Score:
Utilizes response behavior with respect to time and offers protection against fake user

Application Score:
Proven traditional scoring tool that utilizes the demographic information of the applicant

Psychometric Score:
New alternate scoring tool that utilizes the personality type information of the applicant

The tool is in the form of a Quiz – gamified with images and animations – for better customer experience. It would give the individual an instant personality assessment and the institution the decision for approval or decline. Inadvertently, the assessment can be also be used for further customer management purposes and engagements.

Features

  • Geographies: Currently available in India, South East Asia, the Middle East, Africa
  • Localization: As per market and segment requirements, keeping the main framework intact
  • Supported Languages: Available in 6 regional Indian (Hindi, Bengali, Tamil, Telugu, Kannada, Marathi) and Global languages (English, French, Italian, Mandarin, Arabic, Bahasa, Malagasy)
  • Approach: Multi-layered decision framework that utilizes Metadata score, Application Score and Psychometric score

MAP – A Differentiator

A traditional credit score predicts the likelihood of repayment of the loan based on the past repayment track record of the borrower. However, in absence of past repayment history, the loan officer may choose to conduct a personal interview to assess the credit worthiness of the borrower. However, this may bring in personal biases in the system. CRIF provides a ready platform for automating the personal interview and provide instant personality evaluation of the applicant.

CRIF’s Psychometric assessment platform (MAP) can assess an individual’s personality to gauge their ability to repay and intent to repay. MAP studies multiple personality dimensions such as Conscientiousness, Honesty, Discipline etc. considering the cultural context and belief system of the society. For example, Conscientious people are more likely to be willing to work hard to earn extra money and so on. Each of the personality dimensions contribute to assessing credit risk of the applicant.

This platform remove the masks of socio-economic background, level of education and other learned behaviour to provide a deep dive into your borrowers psyche. It can also bring intangible data at the disposal of lenders even for existing borrowers to customise the messaging for each customer based on their personality. Thus enabling the lender to have holistic view of the consumer and achieve personalization.

How can personality test predict an individual’s creditworthiness?

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BENEFITS OF MAP

Increase approval rate
Underwriting more customers in general; including more ‘New to Credit’ customers

Lower Bad rate
Assess the ‘alternate’ imensions of ‘intent to pay’ to reduce false positives

Delight
Gamified UI/UX to enhance customer on-boarding experience

Reduce TAT
Power of 3 scores to take instant decisions