Banking on alt data
Machine learning unlocks alternative data , providing the key to financial inclusion for credit-invisible consumers .
By Kelly Kearsley
Natalia and Beatriz Alzate , sisters from Medellín , Colombia , have operated their traveling food cart business , Venta Nati , for over 20 years . Yet despite their hard work , the sisters struggled to keep the business afloat . They needed to buy daily ingredients in bulk but lacked the funds to cover the up-front costs . Things turned around when Natalia secured a loan from Quipu , a decentralized online bank that uses alternative data sources and a machine learning ( ML ) -based credit model .
PHOTO BY DAVID ESTRADA LARRAÑETA
Sisters and business owners Natalia Alzate and Beatriz Alzate sell food to members of the Medellín community . A loan from Quipu helps them manage cash flow .
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