Experian, StanChart fit out ML to drive financial inclusion

Image courtesy of Experian

Experian has teamed up with Standard Chartered to drive financial access across key markets in Asia, Africa and the Middle East by leveraging the latest technology innovation in credit decisioning. 

Without enough credit bureau data for financial institutions to determine their credit worthiness, especially in this time of unprecedented volatility, many underbanked communities are facing difficulties securing access to loans.

The collaboration involves Experian’s PowerCurve Strategy Manager, integrated with machine learning capabilities that will enable deployment of advanced analytics to help organisations make the most of their data. 

In support of Standard Chartered’s digital-first transformation strategy, this ML capability provides the Bank with the ability to ingest and analyse a high volume of non-bank or, with client consent, alternative data, enabling faster, more effective and accurate credit decisioning, resulting in better risk management for the bank and better outcomes from clients.

Launched in India in December 2019, Standard Chartered registered positive business outcomes such as increased acceptance rates and reduced overall delinquencies. The success in India meant that Standard Chartered is now able to improve risk management for more clients who previously would have been underbanked, empowering them with access to crucial credit and financial services in their time of need.

Beyond benefits to consumers, access to credit is vital for overall economic growth, with consumer spending helping businesses continue to operate during these difficult times.

“Social and economic growth in developing markets, especially in the coming period, will be driven by progress in financial inclusion,” said Mohan Jayaraman, managing director of Southeast Asia and Regional Innovation at Experian Asia Pacific.

Also, Experian and Standard Chartered are working on plans to deploy the solution to its retail franchise across Asia, Africa and the Middle East, in addition to India.

“This partnership helps the bank manage risk more effectively with a more robust data-driven credit decisioning which in turn enables more clients to gain access to financial services at a time when they need it the most,” said Vishu Ramachandran, group head of retail banking at Standard Chartered.