Big Data, Small Credit the Digital Revolution and Its Impact on Emerging Market Consumers

Though these are early days, there is enough to suggest that hundreds of millions of mass-market consumers may not have to remain “invisible” to formal, unsecured credit for much longer. Indeed, “Big Data, Small Credit” (BDSC) early adopters are already pointing the way, indicating both a nuanced understanding of their preferences and transactions and an eagerness to engage in mutually beneficial relationships with BDSC firms. This paper examines that in order to deliver on the BDSC promise, financial service providers, data collectors, innovative entrepreneurs, and regulators will need to collaborate and BDSC firms must continue to create offerings that are attractive to consumers, both in terms of their financial attributes and the trust and transparency that underlie them. Both the lender and the consumer must benefit.