Experian, the world leader in information services, has partnered with FinScore, the pioneer in delivering telco data credit scoring to the unbanked and underbanked populations in the Philippines.
Through this partnership and subsequent access to Experian’s global know-how, FinScore will intensify its focus on delivering alternative credit scoring to help financial institutions reduce high default rates and prevent fraudulent activity, whilst simultaneously bridging the financial inclusion gap for unbanked individuals in the country. Banks and financial institutions that utilise the joint technology will be able to score the unbanked population and gain access to more relevant financial products and services that they need.
The new-to-market telco scoring product, Experian PowerScore, is a collaboration by FinScore and Experian that leverages the combined capabilities of FinScore in the field of alternative data in the Philippines and Experian’s global expertise. This innovative solution utilises alternative data, integrated with cutting-edge behavioral analytics to facilitate financial institutions opening up access to unbanked and underbanked consumers.
FinScore is known to be the first fintech company in the Philippines to leverage alternative data, including telco data to score credit-invisible markets. Telco data is based on over four hundred (400) telco variables as data and voice usage, top-up patterns, location, and SIM age, among others. Combined with FinScore’s Machine Learning algorithms’ cutting-edge technologies, such as Gradient Boosting and Neuron Networks, FinScore is proven to have a highly predictive scoring power. FinScore scoring models have powered the telco credit scores of over 3.5 million Filipinos and over USD 500 million worth of loans have been disbursed in the Philippines.
“Social and economic progress in developing markets, especially in the coming years, will be driven by advancements in financial inclusion. Experian strongly believes that our risk assessment technology, and advanced analytics approach can address this opportunity and we remain deeply committed to the vision of progressing financial inclusion for the world’s underserved and underbanked populations. Our collaboration with FinScore across our alternative data suite of risk decisioning solutions brings together and leverages a next generation approach to risk assessment involving individuals who may have yet to participate in accessing formalised credit. Together with ecosystem partners, Experian is focused on empowering these unbanked and underbanked communities in their first steps to access credit,” said Mohan Jayaraman, Managing Director, Southeast Asia & Regional Innovation, Experian Asia Pacific.