Lending startups analyze smartphone usage to assess creditworthiness in developing countries
Dec01
A number of Silicon Valley-backed startups are thinking outside the box in terms of gauging risk and creditworthiness of would-be borrowers in the developing world. In Africa, where banks are scarce and creditworthiness isn’t typically measured with a FICO score, microlending is making its mark. It’s not a perfect solution. The loans carry interest that can exceed 25 percent. Sending a representative into the field to assess the borrower’s business isn’t efficient and building branches in the region is costly, and often, a bureaucratic nightmare. App-based lending might be the answer. InVenture, a Silicon Valley-funded app-lending platform, provides these same loans between…
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