Southeast Asian open finance platform Brankas and credit solutions provider CRIF have launched the New Evaluation Open Suite (N.E.O.S), a credit scoring system which analyses alternative data sources.
Under the partnership, Brankas will enable the collection of bank statement and other data sources, and CRIF will then apply its machine learning algorithm to the data to generate a credit score.
Among the 400 indicators used by N.E.O.S to understand a customer’s spending behaviour are data on groceries, bill payments, investments, memberships, insurance, loan repayments, and subscriptions.
Brankas and CRIF say that these alternative indicators were developed to provide applicants with a limited credit history — such as micro-entrepreneurs, freelance and gig economy workers — access to credit.
“Borrowers that could be financially strong but without credit history can be excluded from accessing credit by lenders’ credit policies mainly relying on traditional credit data.
As such, lenders lose out on thousands of these potential borrowers every month. To resolve this, Brankas and CRIF have joined forces to co-create N.E.O.S,”
said Husni Fuad, Country Manager of Brankas Indonesia.
“Financial institutions are lacking data to build critical knowledge and valuable insights to expand their market reach and serve the new-to-credit population.
Brankas and CRIF’s open banking suite will allow banks and fintech players to fill this gap, enabling them to make relevant and reliable credit decisions, while improving the upselling potential to existing customers,”
said Simone Lovati, Managing Director, Asia of CRIF.
