Webinar materials: Using Psychometrics for smallholder credit scoring
In this webinar the Entrepreneurial Finance Lab (EFL) shares insights on using psychometric to create data for smallholder credit scores. The EFL tries to combat financial exclusion through using a interactive assessments that not only use generally available data, but also captures certain characteristics of smallholders that are predictive of credit risks. In this way, farmers that were ‘unbankable’ are able to attain a loan. The addition psychometric data contains data on attitude, control, entrepreneurial potential, and social behavior and are combined with other available data. In addition, the Lab also uses an SMS assessment mimicking a conversation with farmers, which is then also analysed. The programme combines all data, leading sometimes to an increased acceptance rate of financiers with 20%. In the webinar Juhudi Kilimo presents a concrete case study where his company uses EFL’s approach for their smallholder financing model.