Equicred
Equitable access for all Africans
Introduction
Developing a credit scoring algorithm for the African market with inclusive evaluation criteria in a bid to create a more equitable system that takes into account the unique economic circumstances and cultural context of African communities.
Problem
Lack of an Inclusive credit scoring infrastructure in African frontier markets. This significantly hinders growth of Small and Medium Enterprises (SMEs), hinders the growth of retail credit market and it is a major inconvenience to bank and financial service providers
Opportunity
A credit scoring algorithm that uses the following Criteria -
Payment History: This looks at how consistently the borrower has made payments on past credit obligations..
Income and employment status : This assesses the borrower's ability to make timely payments based on their current income and employment status.
Collateral: This looks at the value of assets that the borrower is willing to pledge as collateral for the loan
Rent Reporting: Analyse rent payments to determine credit behaviour
Length of credit history: This assesses the borrower's experience with credit, which can provide insight into their ability to manage debt
Education and other demographic factors: This can include factors such as level of education, age, and gender, which can help provide additional context about the borrower's financial situation.
Mobile Money Transactions: This would look at the transactional behavior of the consumers in the informal economy.
Credit utilization: This examines the percentage of available credit that the borrower is currently using, which can provide insight into their level of financial responsibility.