Digital credit scoring

August 01, 2023

Investigators: CDEP Affiliate Daniel Björkegren and Darrell Grissen

1.7 billion people lack access to formal financial services, according to the World Bank. Not only do people lack bank accounts, but also financial histories that would allow them to access credit. However, many of these people now have mobile phones. This line of research has developed tools to predict creditworthiness based on how people use their mobile phones, using machine learning techniques. This approach has become important in the provision of digital credit in developing countries.

Behavior Revealed in Mobile Phone Usage Predicts Credit Repayment, World Bank Economic Review (2020)

The Potential of Digital Credit to Bank the Poor, American Economic Association Papers and Proceedings (2018)