New report on Credit Scoring from Aspen Institute/FIELD

[jan.simpson at aspeninst.]

A new paper from FIELD, the microenterprise Fund for Innovation, Effectiveness, Learning and Dissemination, focuses on the potential of credit scoring to help U.S. microlenders improve risk management and move toward greater efficiency and scale. The report profiles two U.S. microlenders that have found ways to use credit scoring more effectively. ACCION New Mexico analyzed the relationship between the consumer credit scores and subsequent repayment performance of its loan borrowers, and is using this information to improve its underwriting and pricing policies. ACCION USA (AUSA) has gone even further, developing a microenterprise credit-scoring model that uses information beyond that used in consumer credit scores. The paper, ?Credit Scoring for Microlenders,? describes each project in detail, outlines the steps they are taking to incorporate greater use of credit scoring into their lending programs, and lays out some key lessons for other microlenders that might wish to use scoring. Download a free PDF of the paper (http://fieldus.org/Projects/pdf/CreditScoring.pdf).
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