Webinar | Alternative Data for Financial Decisions: Lending to Farmers Using Nontraditional Data
A core challenge of the banking sector is securing sufficient data to accurately credit score agricultural clients, especially smaller sized farms. The lack of "financial footprints" of farmers can act as a real barrier to banks wanting to expand their lending to such clients. Fortunately, new technology aligned with big data analytics is providing a means of overcoming this challenge, enabling financial institutions to utilize "non-traditional" data for credit scoring farmers.
At our recent webinar, Michael Mbaka, Senior Innovations Specialist, FSD Kenya, spoke about the experience of FSD with regards to how banks and other financial institutions are starting to use alternative data to solve the credit scoring challenge. Michael identifies and details some of the alternative data sets and how they are used to generate credit scores for agricultural clients. He explains how these new credit scoring models work, and shares the promising preliminary results of organizations who have put the new designs into practice.
Michael Mbaka, Senior Innovation Specialist, FSD Kenya