International Journal on Data Science and Technology

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Using Open APIs To Drive Financial Inclusion Via Credit Scoring Built on Telecoms Data

Received: Dec. 31, 2020    Accepted: Jan. 11, 2021    Published: Feb. 02, 2021
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Abstract

Financial exclusion remains a significant challenge in developing economies. It has been shown that access to credit facilities is a strong predictor of financial inclusion. Credit reporting and scoring remain effective tools for both traditional and alternative lenders, however, access to credible credit data and scoring mechanisms is one of the biggest roadblocks that alternative lenders in developing economies face. While some lenders have developed systems that leverage social media analytics and data harvested from smartphones in order to create a scoring system, the poor and vulnerable are still excluded from such scoring systems. There have been significant advances in the use of telecoms data for credit scoring, making it a promising alternative to credit bureau data. However, readily available data is still an issue. With the increase in the development and use of open APIs, telecoms data could be made readily available for credit scoring, while addressing privacy and other issues. This paper is a conceptual paper that proposes a model for the use of Open APIs from telco data for credit scoring that will ultimately increase access to credit, and ultimately financial inclusion in Africa.

DOI 10.11648/j.ijdst.20210701.12
Published in International Journal on Data Science and Technology ( Volume 7, Issue 1, March 2021 )
Page(s) 17-22
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

APIs, Credit Scoring, Economic Development, Financial Inclusion, Call Detail Records

References
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  • APA Style

    Adedeji Olowe, James Kunle Olorundare, Temitope Phillips. (2021). Using Open APIs To Drive Financial Inclusion Via Credit Scoring Built on Telecoms Data. International Journal on Data Science and Technology, 7(1), 17-22. https://doi.org/10.11648/j.ijdst.20210701.12

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    ACS Style

    Adedeji Olowe; James Kunle Olorundare; Temitope Phillips. Using Open APIs To Drive Financial Inclusion Via Credit Scoring Built on Telecoms Data. Int. J. Data Sci. Technol. 2021, 7(1), 17-22. doi: 10.11648/j.ijdst.20210701.12

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    AMA Style

    Adedeji Olowe, James Kunle Olorundare, Temitope Phillips. Using Open APIs To Drive Financial Inclusion Via Credit Scoring Built on Telecoms Data. Int J Data Sci Technol. 2021;7(1):17-22. doi: 10.11648/j.ijdst.20210701.12

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  • @article{10.11648/j.ijdst.20210701.12,
      author = {Adedeji Olowe and James Kunle Olorundare and Temitope Phillips},
      title = {Using Open APIs To Drive Financial Inclusion Via Credit Scoring Built on Telecoms Data},
      journal = {International Journal on Data Science and Technology},
      volume = {7},
      number = {1},
      pages = {17-22},
      doi = {10.11648/j.ijdst.20210701.12},
      url = {https://doi.org/10.11648/j.ijdst.20210701.12},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ijdst.20210701.12},
      abstract = {Financial exclusion remains a significant challenge in developing economies. It has been shown that access to credit facilities is a strong predictor of financial inclusion. Credit reporting and scoring remain effective tools for both traditional and alternative lenders, however, access to credible credit data and scoring mechanisms is one of the biggest roadblocks that alternative lenders in developing economies face. While some lenders have developed systems that leverage social media analytics and data harvested from smartphones in order to create a scoring system, the poor and vulnerable are still excluded from such scoring systems. There have been significant advances in the use of telecoms data for credit scoring, making it a promising alternative to credit bureau data. However, readily available data is still an issue. With the increase in the development and use of open APIs, telecoms data could be made readily available for credit scoring, while addressing privacy and other issues. This paper is a conceptual paper that proposes a model for the use of Open APIs from telco data for credit scoring that will ultimately increase access to credit, and ultimately financial inclusion in Africa.},
     year = {2021}
    }
    

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    T1  - Using Open APIs To Drive Financial Inclusion Via Credit Scoring Built on Telecoms Data
    AU  - Adedeji Olowe
    AU  - James Kunle Olorundare
    AU  - Temitope Phillips
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    PY  - 2021
    N1  - https://doi.org/10.11648/j.ijdst.20210701.12
    DO  - 10.11648/j.ijdst.20210701.12
    T2  - International Journal on Data Science and Technology
    JF  - International Journal on Data Science and Technology
    JO  - International Journal on Data Science and Technology
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    EP  - 22
    PB  - Science Publishing Group
    SN  - 2472-2235
    UR  - https://doi.org/10.11648/j.ijdst.20210701.12
    AB  - Financial exclusion remains a significant challenge in developing economies. It has been shown that access to credit facilities is a strong predictor of financial inclusion. Credit reporting and scoring remain effective tools for both traditional and alternative lenders, however, access to credible credit data and scoring mechanisms is one of the biggest roadblocks that alternative lenders in developing economies face. While some lenders have developed systems that leverage social media analytics and data harvested from smartphones in order to create a scoring system, the poor and vulnerable are still excluded from such scoring systems. There have been significant advances in the use of telecoms data for credit scoring, making it a promising alternative to credit bureau data. However, readily available data is still an issue. With the increase in the development and use of open APIs, telecoms data could be made readily available for credit scoring, while addressing privacy and other issues. This paper is a conceptual paper that proposes a model for the use of Open APIs from telco data for credit scoring that will ultimately increase access to credit, and ultimately financial inclusion in Africa.
    VL  - 7
    IS  - 1
    ER  - 

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Author Information
  • Open Banking Nigeria, Lagos, Nigeria

  • Nigerian Communications Commission (NCC), Abuja, Nigeria

  • Lendsqr, Lagos, Nigeria

  • Section