Using Open APIs To Drive Financial Inclusion Via Credit Scoring Built on Telecoms Data

Abstract

Financial exclusion remains a significant challenge in developing economies. It has been shown that access to credit facilities is a strong predictor of financial inclusion. Credit reporting and scoring remain effective tools for both traditional and alternative lenders, however, access to credible credit data and scoring mechanisms is one of the biggest roadblocks that alternative lenders in developing economies face. While some lenders have developed systems that leverage social media analytics and data harvested from smartphones in order to create a scoring system, the poor and vulnerable are still excluded from such scoring systems. There have been significant advances in the use of telecoms data for credit scoring, making it a promising alternative to credit bureau data. However, readily available data is still an issue. With the increase in the development and use of open APIs, telecoms data could be made readily available for credit scoring, while addressing privacy and other issues. This paper is a conceptual paper that proposes a model for the use of Open APIs from telco data for credit scoring that will ultimately increase access to credit, and ultimately financial inclusion in Africa.

Regulatory Data Privacy Concerns in Proliferating IoT Era of Telecommunication Data Monetization: A Systematic Literature Review

“…As the world becomes more interconnected through various IoT use cases, it's becoming increasingly important to establish Telcos as reliable data brokers that can provide valuable services and insights to interested parties [33]. This will undoubtedly lead to more specific data monetization requirements from potential buyers, but it also means we must carefully evaluate the associated privacy risks and regulatory gaps.…”

Network-aware credit scoring system for telecom subscribers using machine learning and network analysis

“…The telecom inner data (e.g. mobile phone call-detail records, telecom billing information) explains the subscribers' credit scores as input in the financial field, but not the creditworthiness of telecom subscribers in the telecom marketing domain itself (Olowe et al, 2021). A high-performance comprehensive credit scoring model is the core of the subscriber persona profile.…”