Study urges lenders to use phone data for credit rating

Fintech firms can partner with data analytics firms to generate data. FILE PHOTO | NMG

A UN study has recommended the adoption of mobile phone use data in gauging the credit score of low-income earners to increase their chances of accessing microloans.

A global partnership bringing together governments and private sector players (ID2020 Alliance) said the traditional identity card and documentary evidence of an individual’s financial history locked out millions of low-income earners from getting funds for income-generating projects.

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