Financial Credibility & Affordability - Data-Driven Financial Intelligence

The Financial Credibility has the same goal as a traditional credit score in determining a customer’s ability to repay credit, but greatly increases the scope. The underlying insight is constructed from variables extracted from the transaction data of both credit and debit products. Hence credit-like behaviour, such as whether or not someone pays their rent or utility bills, is also picked up.The affordability has a slightly different aim and delves into a customer’s capacity to repay credit.

We have developed a scoring model based on key parameters such as:

Credit insight: Past repayment behavior, defaults, and credit utilization.
Income Insights: Regular income sources and job tenure. Income consistency, and income sources
Debt-to-Income Ratio: Total debt obligations relative to income.
Collateral Value: For secured loans, the value and quality of collateral.
Behavioral Analysis: Spending patterns and financial discipline, identifying financial risk markers such as overdrafts, loan stacking etc.
Machine Learning Algorithms: Incorporate predictive analytics to improve accuracy over time and calculate repayment affordability.

Depending on the continuous availability of the data the platform can Regularly update risk grades based on changes in financial behavior and market conditions. this refers to, Proactively Identify customers that are showing signs of becoming vulnerable and put measures in place to support them. Cashflow insights on end-of-day balance, recurring credits & debits, deposits vs. outgoings and more. The solution will provide such information to the lending management solution for the decision simplification.