Accion Report Shows How Leveraging Data Can Lead to Greater Financial Inclusion
- Report finds tremendous potential for financial service providers (FSPs) to leverage data-driven innovations to improve business operations and successfully reach the world’s three billion financially underserved.
- Despite this, many FSPs do not adequately use data to its full potential.
- Early adopters often start by using alternative sources – such as mobile call records, utility payments, social media activity – to extend credit to “thin-file” or “credit-invisible” customers.
- Benefits of alternative data extend beyond alternative credit underwriting.
- Data can drive innovation in business activities as diverse and far-reaching as: verifying customer identity, digitizing workflows for automated business processes, analyzing customer behavior to develop personalized products, and using real-time messaging services to improve customer service.
Accion released a report that charts a path for FSPs to use data to accelerate financial inclusion and improve their business operations. This report, developed by Accion with the support of the Citi Foundation, details the steps providers can take to lay the groundwork for big data and advanced analytics by improving their ability to generate, analyze, and respond to data of any size – starting with the information and data they already have – to help extend high-quality financial services to the underserved.
“New sources of data are growing exponentially and there are many ways a financial service provider can harness this value. Often, providers already have great, but underutilized, data on hand,” said Michael Schlein, President and CEO of Accion.