How can Big Data help to improve the financial scoring process?

Monday, 4 September 2017

How can Big Data help to improve the financial scoring process?

Content written by Daniel Torres Laguardia, Head Scoring (data product)

Michael wants to apply for a financing of its recent TV purchase, and wait… he needs to be checked. And after that, he may get his financing for a certain amount of months and a specific monthly installment. The check is not like being checked in the airport, it is quick and transparent for Michael, but waiting for the outcome is somehow dizzy…

Scoring someone sounds like a procedure that you need to go through and that you don’t want to know about. However it facilitates access to financing, where companies that finance end users take informed decisions to lower the risk and make these credits accesible.

In some cases or markets, these scores are negative scores, so they can deny or harden the conditions of a credit. In other countries there are positive scores and end users can check their scores and improve them. And if in the past a fraudster took over someone’s identity and did some purchases, then the real person’s scoring might go down and that might affect future important transactions of the affected person.


Mobile usage data can improve financial scoring processes.
Figure 1: Mobile usage data can improve financial scoring processes.


How you use your mobile phone subscription can help users in these situations or even directly get a credit approved by the financing entity. There are some concepts in the industry that are showing how Big Data and business intelligence can help individuals to get access to small credits, for example “Big Data, Small Credit”. It is a reality that there are new data sources which can be analyzed to take a business decision to grant a credit, and telco data can play its role, always with user consent.

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