Finscore is the Predictive Analytical tool developed and incubated within the "The Microfinance Association" UK. The Microfinance Association is a global body for microfinance practitioners, the association was set up in 2008 to provide training, consultancy and delinquent management consulting to microfinance institutions, these are institutions that serve those at the bottom of the economic pyramid and in most cases have no access to finance and where credit scoring systems are not present.
Finscore is based on Machine Learning, the focus on machine learning today is to create computer algorithms that learn from data and can make accurate predictions of outcomes-based upon the patterns deduced within the date. Unlike traditional statistical modeling, the FinScore predictive models of machine learning are generated by an algorithm, as opposed to determinations made by statisticians based upon their interpretation of the results of linear regression and related techniques.
FinScore uses data that either held or collected by MFIs/Banks along with behavioral and psychometric indicators, we then use the data using a wide range of algorithm to predict the outcome of loan applications.