One of the most challenging tasks for lenders or banks is to accurately verify and process loan applications. After all, sanctioning loans to a person with a poor credit score can be devastating for a lender. There are many unbanked persons who need a loan, but assessing their credit history is a little challenging. This is where the best Credit Scoring API comes to play. The modern credit score API allows you to assess unbanked persons through alternative data sources to ensure that they meet your desired risk requirement.
Make the Right Decision By Analyzing Alternative Data
Credit scores can’t give a complete picture of the financial condition of loan applicants. This means both borrowers and lenders can miss out on some opportunities if they don’t consider other metrics to evaluate creditworthiness.
Around 32 percent of UAE’s total population is unbanked, earning around AED 2,500 per month (UAE Federal Competitiveness and Statistics Authority). Analyzing alternative data inputs, for example, utility payments, on-time rent payments, etc., can show a more detailed picture of unbanked applicants. While alternative credit data is generally not considered in credit scores, this can boost the rates of loan approval. And you can easily analyze this data …Continue reading