easy offline credit scoring
TRANSCRIPT
Easy Offline Credit Scoring with TaroWorks
www.ilumexico.mx • [email protected]
ENERGY POVERTY A worldwide priority
1.3 billion* People still lack access to electricity
600 thousand houses In Mexico.
Energy Impact on people´s lives
Health Reduction of indoor
air pollution
Education Extension of studying hours and enabling
provision of ICTs
Economy Reduction in
spending on lighting and increase of
productive activities
$
*World Energy Outlook. Energy Access: A worldwide development priority
www.ilumexico.mx • [email protected]
MARKET CONDITIONS Characteristics and current conditions
Spend on lighting sources Diesel, candles, and wood.
Low income Rural and marginalized communities without access to basic services.
Lack access to electricity or unreliable access
Average income: 2080 MXN per month.
ILUMEXICO ¿Who are we?
WHO WE ARE
ILUMÉXICO We are a Mexican social enterprise that provides energy to rural communities.
www.ilumexico.mx • [email protected]
www.ilumexico.mx • [email protected]
ILUMEXICOBusiness model
OUR MISION
Last mile Distribution
ILUCentros
Consumer Finance Flexible financing
Social Impact Programs for social
development
Technology Development of
Mexican Technology
To fight poverty through solar energy.
4 Pillars of innovation and sustainability
Why Credit Scoring?
www.ilumexico.mx • [email protected]
Client Portfolio & Default Rate
18%
22% 52%
9%
Portfolio at Risk
Healthy
30 days behind 60 days behind 180 days behind
8.23%
91.77%
Finished Loans
Defaulted or Cancelled Payed
Goal: < than 25% sum of 60 and 180 days behind
Goal: < than 5% defaulted or cancelled
How is TaroWorks helping us do that? Our Six Steps
www.ilumexico.mx • [email protected]
Step 1: Define possible criteria for loan performance
On our Case….
Income / Income regularity / Expenses
Government program or receives money from above?
Ocupation Years lived in community
Days spent per week at location
Community Organization
Involvement in community’s activities Field Officer Opinion
www.ilumexico.mx • [email protected]
Step 3: Classifying Scores
0-5 Income Parameter A-D Trust Parameter
www.ilumexico.mx • [email protected]
Step 4: Be patient and get Data
SEP 2014
JAN 2016
Started Credit Scoring
700 Finished Loans
www.ilumexico.mx • [email protected]
Steps 5 & 6: Analyze & Implement
Cross referencing loan performance to proposed indicators
Finding correlation between both of them
Eliminating those without incidence in our model
Simple but effective credit scoring methodology
What we are doing What we expect
Accesible loan installlments for users (based on their income)
Better portfolio at risk and default rate performance
@ilumexico /ilumexico @ilumexico www.ilumexico.mx
Manuel Andrade Aparicio COO [email protected] Cel. +5215522702126