Three financial gurus set out to redefine lending at fintech show
A recent survey by Millimetrics.ai found that 65% of the organisations polled said they have too much data to handle and that 73% of the data collected is unused.
The issue of data was address by three experts from the region’s credit bureaus and data analytics firms in the panel discussion on “The Power of Data: Driving Financial Inclusion in ASEAN” on Thursday.
TransUnion managing director Wingo Wong, National Credit Bureau deputy president Phadet Charoensivakorn, and Mina Intanate, chief operating officer of Business Online shared their thoughts on how to use data to reach out to underbanked or unbanked communities.
TransUnion managing director Wong suggested that lending providers consider categorising alternative data on a person’s credit, such as consumer behaviour, in addition to conventional data. This type of data would assist a company in exploring potential solutions to ensure that an individual has access to a proper loan and the ability to repay his or her debt.
Furthermore, he pointed out that data on behaviour can reflect debt capacity and source of income, as many of the new generations are currently self-employed.
Thailand’s National Credit Bureau deputy president, Pradet, agreed with Wong. He encouraged financial institutions and other digital lending providers to expand their data sources to diversify their own databases.
Meanwhile, he advised businesses to strike a balance between data innovation and data security, noting that credit information is classified as highly confidential. The first priority, therefore, is security.
Referring to international security standards and compliance could be a useful shortcut while a company develops its own innovations, he added.
COO Mina of Business Online pointed out that when discussing financial inclusion, borrowing companies should consider their ability to increase their worthiness through ESG (Environment, Social, and Governance) practices in addition to their financial report.
All three experts agreed to work with related parties to improve individual financial literacy, allowing people to manage their financial difficulties.
