Including Psychometric Testing Into Credit Risk Assessment

Amie Vaccaro and Julia Reichelstein will discuss the Entrepreneurial Finance Lab's (EFL) psychometric scoring system. Its function is to measure and assess proven characteristics of predictive risk by incorporating psychometric criteria, including text and timer analysis, as a type of alternative data, to identify key behavioral traits of an applicant. Identifying behavior traits using a scientific process helps paint the picture of a person's ability to repay loans and the willingness to do so. Furthermore, the presenters will share the results of the Equity Bank Africa case study where their psychometric application was used for scoring and approval of customers remotely. A digital readiness primer describing the necessary steps financial institutions should follow to move from a state of no digital technology to a fully digital process pushing to scale will be included.

Speaker(s):

Amie Vaccaro, Product Marketing Manager at EFL North America

Julia Reichelstein, Digital Lead at EFL Africa