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.