Want to create an interactive transcript for this episode?
Podcast: How to Lend Money to Strangers
Episode: Big data scoring for thin file and new-to-credit customers, with Oscar Koster (Big Data Scoring)
Description: The traditional credit model is often underpinned by an existing credit history. This makes sense mathematically, after all the best predictor of future delinquency is past delinquency, but it can present a barrier to entry to some customers – if you won’t give me credit today because I haven’t had credit before, then how can I ever get credit?Consumers with thin files - or indeed no files at all - on the credit bureaus found themselves all lumped together and burden with a high-interest rate. In the big developed markets, this might be a small popula...