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Delving into human consciousness: using psychometric assessments in financial services

Everyone has a unique and distinctive personality. Fortunately for low-income populations that may have been excluded from formal financial services, their character traits can now help them access financial products. A psychometric credit assessment provides
an alternative for thin-file loan applicants (i.e., zero or low credit history) by generating credit scores based on personality and behavior. These assessments predict loan repayment behavior by measuring an applicant’s attitude, integrity, and performance. This case study will delve into LenddoEFL’s journey in developing psychometric data for financial services and, in parallel, explore the experience of Juhudi Kilimo (JKL), a Kenyan microfinance institution, in implementing LenddoEFL’s credit-scoring model. It ends with some recommendations for using credit-scoring models.

FiDA Partnership
The Mastercard Foundation Partnership for Finance in a Digital Africa (the “Partnership”) is an initiative of the Foundation’s Financial Inclusion Program. The Partnership catalyzes knowledge and insights to promote meaningful financial inclusion in an increasingly digital world. Led and hosted by Caribou Digital, the Partnership works closely with leading organizations and companies across the digital finance space. By aggregating and synthesizing knowledge, conducting research to address key gaps, and identifying implications for the diverse actors working in the space, the Partnership strives to inform decisions with facts, and to accelerate meaningful financial inclusion for people across sub-Saharan Africa.

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