Enterprise Case Study: Solving Underbanked Credit Scoring

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Create financial footholds for emerging consumers.

Lending money is fundamentally all about sustainably balancing risk with reward, and because the risk of individual underbanked consumers has traditionally been difficult to quantify, the credit products made available to them tend to feature high interest rates. Mainstream credit scores are reliant on too narrow a set of data to accurately judge the real repayment risk presented by large numbers of those less advantaged consumers, effectively denying them access to mainstream credit facilities as a result. The use of a wider set of data sources in producing a new form of credit scoring, however, potentially provides an opportunity to accurately quantify the risks involved, enabling lending to those underbanked consumers at more affordable APRs. 

Kinecta Federal Credit Union in California is an early adopter of richer data and has been using RiskView™ from LexisNexis Risk Solutions to support its core strategy: to open up a broader range of financial products to some of America's 51 million underbanked adults.
 

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