Previously , the sisters had relied on frequent , high-interest loans to keep their business running . “ I don ’ t know what I would have done without the loan ,” Natalia says . The sisters can now purchase ingredients when needed , and have more time to focus on their business .
“ We ’ re using alternative data and technology to further financial inclusion — and improve the lives of millions of people .”
— Juan Constain , co-founder and COO , Quipu
Juan Constain , Quipu ’ s co-founder and COO , says alternative data is key to enhancing credit access for consumers in Latin America and around the world . “ We ’ re using alternative data and technology to further financial inclusion — and improve the lives of millions of people ,” he says .
Financial services companies have been aware of alternative data for years , but deploying it widely has been a challenge . Now that ’ s all changing . The rapid and recent rise of artificial intelligence ( AI ) and ML-based technology solutions has made accessing and incorporating this data — which ranges from bank account cash flow to rental payment history to phone contact information — much easier . What ’ s more , the pandemic opened new digital channels and increased consumer comfort with mobile transactions .
The result is that alternative data is at a tipping point , with 50 % of lenders ready to adopt alternative data into their credit risk assessments and nearly one-third of lenders planning to use the data to access new credit markets , according to a 2022 survey by Nova Credit . This shift could open up credit access to previously excluded consumers across the globe , potentially improving their financial well-being in the process .
PHOTO ( LEFT ) COURTESY OF QUIPU
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