![]() The access to this data also allows for a new way of looking at credit scores. ![]() Digital lenders can have access to employment history, education details and spending habits that help them better understand if an applicant will be able to pay their debts (Srivastava, 2021). ![]() The availability of data allows the lender to look deeper than the credit score when analyzing the creditworthiness of a customer, resulting in a more accurate risk assessment (Infosys BPM, n.d.). Technological advancement has spurred on much of the change in consumer lending. For some, financial institutions had made borrowing too hard or simply inaccessible (Infosys BPM, n.d.). It was also a response to the digitisation of personal finance, as digital lenders sought to fill the gaps where customers expressed a preference for digital services. Digital lending was a response to the pain-points customers experience with traditional lending, such as tedious loan processes and the requirement to have good credit history for access to bank loans (Infosys BPM, n.d.).
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