Page 33 - Banking Finance December 2018

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. he ps cho etric test de i ered in ernac ar an a es o i e ro sin or app do n oad histor can e sed ith
is a in te s r e that inc des s ita e contro s for ade ate safe ards to nderta e a ris profi in in order
fra d and a in . pp icants are assi ned a three di it to deter ine the credit orthiness of nderser ed
credit score that predicts a orro er s pro a i it of defa t c sto ers. Bi data ana tics ith a specific foc s on the
. entered the ndian ar et in 2 and has oined hands ana sis of non inear incon r ent infor ation strea s has
ith se era B s c ai in that enders sin its screenin i ense potentia to oost the scope and credi i it of s ch
too ha e sho n p to a red ction in the defa t rate. credit scorin ode s. s cho etric testin co p ed ith
the data ased a ternati e credit ana tics pro ides added
. nternet of hin s n er in ad anta es in de e opin ro st credit scores ased entire
on the a ternati e data.
pport nit
re o tion is rad a enterin o r i es herein the ternati e credit ana tics has the potentia to
e er da o ects s ch as ho se sec rit s ste s e ectrica f nda enta chan e the eas re ent and ana e ent
connections s pp ies ti ities etc. are increasin ein of credit ris . inancia instit tions oo in to etter
ena ed to send and recei e data connectin and nderstand their c sto ers ro and di ersif portfo ios
co nicatin direct ith one another and thro h ser and contro ris are rad a t rnin to the a ternati e
interfaces in s artphone app ications no n as the internet ana tics as a so rce of opport nit . he a ai a i it and
of thin s. his pro ides enor o s opport nities for rea ti e predicti e po er of the a ternati e data so rces ar ide
assess ent in the do ain of credit ana tics s ch as and this a s it needs for different enders in ario s
onitorin end se of f nds a it of co atera s s pp ar ets. o e er the credit ana sis and scorin ased on
chains etc. ho h sti a de e oped or d pheno enon this a ternati e data or other ise is on one co ponent of the
is fast catchin p in the e er in ar et space and it endin d e di i ence process and therefore si p a ood
co es ith its inherent potentia to f rther i pro e the se credit score cannot arantee a stron portfo io
of a ternati e credit ana tics. perfor ance. ina in certain cases the a ternati e credit
ana tics a e sed as a s pp e ent rather than a
. on sion
s stit te to pro ide a ore n anced nderstandin of
ternati e credit ana tics is an interestin and effecti e credit ris and the siness potentia .
too and is increasin ainin ro nd to cater to the credit
r nc s
needs of the nder ser ed se ents ac in a s fficient
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2 7 https .i .co soft are data
ana tics s pport for other se ents of the credit ar et.
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sta ishin an appropriate credit ris en iron ent
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operatin nder a so nd credit rantin process
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aintainin an appropriate credit ad inistration
eas re ent and onitorin process and ens rin . ata ana tics and di ita financia ser ices
and oo ne 2 7 .ifc.or
ade ate contro s o er credit ris are the series of inter
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ana e ent of credit ris . o nd credit ana tics p a s a
Ma in . inancia na sts o rna o e er
si nificant ro e in this process.
ece er 72
ndians are the second ar est o i e phone sers in the . i . . and . R. cott. rediction of orporate ai re
or d and this pro ides a h e potentia for the se of n rtificia e ra et or pproach. or in aper
a ternati e credit ana tics. er ti e indi id a s a e a o th est Misso ri tate ni ersit epte er
phone ca send a te t ro se the nternet en a e socia . http .firstaccess ar et.co
edia net or s on their phones or top p their prepaid
cards the deepen their di ita footprints. ata fro o i e vi s r p rson n o not n c ss ri r ct t os
phone records prepaid top ps o i e i pa ents and o t s rv B n o n i

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