These digital lending AI models make decisions based on Geolocation.
According to a study in the US: Lending behaviour was highly correlated to sugar-related diseases in a “PARTICULAR STREET”.
For people who don’t have bureau scores or proper bank statements, Geolocation is considered for underwriting.
What these models will give based on street-level intelligence:
1) Who lives here – are these wealthy people or low-income group people
2) People living in these streets are crowded – if the Geolocation belongs to a slum, then it’s a risky user. (I felt bad after hearing this)
3) What kind of stores are there: For example, More Auto repair shops in a street which says this is from a lower income group area and expensive restaurants signal wealthy people
4) The real estate value of this location
More than 2000 parameters can be analysed with Geolocation.
Based on these data, we can arrive few things.
1) The collection behaviour
2) What financial products can be sold to them
whats ur thoughts on this?
#digitallending #geolocation #manispeaksmoney