The business of credit scoring is experiencing something of a revolution. Traditional scoring techniques are being challenged by a new generation of start-ups that are using unconventional information, including social media networks, to reach out to consumers previously unable to obtain a credit score.
Much of this innovation has been driven by the emergence of big data analysis, in which vast amounts of digital information is analysed using complex computer algorithms. By tapping into this wealth of information, a new generation of credit scorers is now able to provide credit access to underbanked and underserved groups in both developed and emerging markets.
