FICO, a US-based credit scoring company, has today announced a new partnership with Lenddo, a specialist in credit and verification technologies, to develop a credit risk score for consumers in India who have a limited or no formal credit history.
The collaboration will combine Lenddo’s use of non-traditional data for scoring and online verification with FICO’s strength in credit scores that are predictive, transparent and fair.
According to a release, FICO and Lenddo are developing a score that will give lenders improved certainty around the risk assessment of people with ‘thin-files’ – those who don’t have enough data in their credit report to score. Both companies are committed to the common goal of enhancing financial inclusion around the world.
Richard Eldridge, co-founder and chief executive at Lenddo, said, “We believe that helping qualified low- and middle-income consumers gain access to credit will improve their lives and quite possibly transform Indian society. Defeating the need of a credit history to obtain a loan is essential to bring unserved but qualified consumers into the formal economy and giving them access to mainstream financial institutions. We are keen to work with FICO them to augment the drive for financial inclusion in the world’s fastest growing economy.”
Jim Wehmann, EVP of Scores at FICO, said, “We see our partnership with Lenddo as a great synergy of analytics and scoring innovation, which we hope will give millions of creditworthy individuals access to credit. We already have received a very positive response in India from financial institutions, the regulators and government, and we look forward to announcing more very soon.”