Why FinScore

Most microfinance institutions in developing countries have no way of predicting whether a lender would be able to maintain its loan repayments because they do not have sophisticated systems that they can use to predict a borrower's capacity and willingness to make loan repayments. Therefore, before financial inclusion can then be enhanced further, sophisticated lending tools need to be developed so that financial inclusion can be extended to those that are at the bottom of the economic pyramid.

Why us?

Financial inclusion is simply defined as "the availability and equality of opportunities to access financial services". Yet the challenges to enhancing financial inclusions are wide-ranging and require us to consider new innovations. We see this broad reach in the Sustainable Development Goals, where financial inclusion is reflected as a target in 8 of the 17 goals.

The question then arises on the type of innovations that can help us further expand access to identity and understand risk can lead to a reduction in borrowing costs, fair treatment of customers, enhancing operational efficiency and improving client selection. For this reason, The Microfinance Association UK has developed a credit scoring model with a team of data scientists. We have used our experience working with several microfinance institutions to develop the scoring model.

Finscore is an alternative credit scoring company that is powered by data and advanced analytics. Our credit scoring model would assist financial institutions to reduce defaults, increase approval rates and combat fraud.

A credit scoring model assesses potential borrower's creditworthiness based on large datasets of customer and market information. Unlike traditional credit scorecards involving subjectivity, the FinScore credit scoring model uses objective results and historical loan outcomes data to predict which clients are most likely to be creditworthy, as well as which clients have characteristics that are intricately linked to default.

FinScore is based on machine learning that is based on a set of statistical methods that can automatically detect patterns in data and use those patterns to predict future data. As financial institutions build up large databases of customer behavior, managers and credit analysts can base decisions on increasingly reliable information provided by a credit scoring model. FinScore will be able to predict those individuals and businesses that are unlikely to default on loan repayments.

FinScore is a unique lending model that combines both qualitative and quantitative data relating to those that are at the bottom of the economic pyramid. This lending software would allow microfinance institutions to make algorithm-based decision making that would allow more institutions to make decisions and therefore expand financial services provided to those that are at the bottom of the economic pyramid.

Uniqueness of FinScore

Microfinance clients can benefit from a faster loan application process, in addition to equal, fair and transparent treatment based on the Output Scores. By fairly and reliably differentiating credit-worthy from very high-risk clients financial institutions will increase their willingness to lend to clients requiring vital capital. This is depicted in the figure.
If better credit decisions are made more efficiently, financial institutions can generate higher revenues, improve client selection, reduce delinquencies, reduce the turnaround time of loan disbursements and lower losses. The quality of a sustainable portfolio is in the best interest of financial institutions bottom line-even beyond its social impact commitments - clients benefit from increased access and market competition.

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Technical Platform Amazon Web Services

The Finscore is hosted on the Amazon Web Services (AWS), this is a platform that is used by most banks in the UK and North America. AWS is secured and meets the regulatory standards both in Europe and North America. Amazon Web Services is an internationally recognized subscription-based Service. Amazon Web Services is based on cloud technology or 'the cloud' which enables you to mitigate the risks that your business faces, improve your data security, reduce your operating costs, and cut your down-time.
These Internet-connected data centers can store software, programs and applications, like Facebook and Office 365, Before cloud technology, financial institutions needed to store all of its software and applications on your computer through installation. With cloud technology, you no longer install software or applications. All you and your team need to do is connect to the Internet to access the software and applications stored in the cloud. Cloud computing means that you are using software or applications that are connected to the internet.

Although FinScore will be hosted on Amazon Web Services, microfinance institutions will not be storing data on this platform but simply running what you do is to run the loan application process through Finscore if you are looking to consider an objective and transparent criteria before a lending decision is made to improve client selection and reduce delinquency. The financial institution's client data will be protected and kept confidential.

Leadership Team

Ademola Tosoye has a master's degree in Business Administration in International Finance and Economic Development from the University of Stirling, Scotland. Ademola has considerable experience in Credit and Micro Finance Operations and Management, Mobilization of savings for deposits, Training and curriculum development, Capacity building for Organizations involved in Microfinance. Ademola has good management skills and has a strategic approach to microfinance development issues. He has considerable experience in capacity building and the development of microcredit institutions.

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Ommara Raza Ali is a development economist having studied from Harvard Business School with demonstrable success in areas of organizational restructuring, digital finance, FinTech partnerships, and business growth. She has a record in consistently turning around organizations by delivering exceptional results by developing high-performance teams, focusing on value drivers, and executing strategies. She brings together vast international exposure and experience as she has worked with various international organizations including FINCA International (which is present across 5 continents including Europe), Microfinance Association United Kingdom as Academic Advisory Board Member and Director Europe and Asia, Habitat for Humanity International USA, USAID and Opportunity EduFinance.