meet joe. - microfinance · 2017. 9. 14. · moderator: ms. debbie watkins, managing director,...

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Total Banking Solutions Meet Joe.

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Page 1: Meet Joe. - Microfinance · 2017. 9. 14. · Moderator: Ms. Debbie Watkins, Managing Director, APMEA Fern Software Mr. Bruce Mackinlay, General Manager Credit & Data Bureau (PNG)

Total Banking Solutions

Meet Joe.

Page 2: Meet Joe. - Microfinance · 2017. 9. 14. · Moderator: Ms. Debbie Watkins, Managing Director, APMEA Fern Software Mr. Bruce Mackinlay, General Manager Credit & Data Bureau (PNG)

Total Banking Solutions

Joe is a lot like you.

Page 3: Meet Joe. - Microfinance · 2017. 9. 14. · Moderator: Ms. Debbie Watkins, Managing Director, APMEA Fern Software Mr. Bruce Mackinlay, General Manager Credit & Data Bureau (PNG)

Total Banking Solutions

He wants the same things you do.

Page 4: Meet Joe. - Microfinance · 2017. 9. 14. · Moderator: Ms. Debbie Watkins, Managing Director, APMEA Fern Software Mr. Bruce Mackinlay, General Manager Credit & Data Bureau (PNG)

Total Banking Solutions

His parents to be taken care of in old age

A better future for his children

Cushioning against unexpected shocks

To be in control of his own future

Oh, and one more thing….

Page 5: Meet Joe. - Microfinance · 2017. 9. 14. · Moderator: Ms. Debbie Watkins, Managing Director, APMEA Fern Software Mr. Bruce Mackinlay, General Manager Credit & Data Bureau (PNG)

Total Banking Solutions

Not to be penalised for being poor.

Lower income families often pay more than families with higher incomes for the exact same product or service.

Page 6: Meet Joe. - Microfinance · 2017. 9. 14. · Moderator: Ms. Debbie Watkins, Managing Director, APMEA Fern Software Mr. Bruce Mackinlay, General Manager Credit & Data Bureau (PNG)

Total Banking Solutions

Typical Credit Card APR: 20% per annum

Typical Loan Shark Interest: 20% per day

Electricity in a Phnom Penh apartment: $0.50 per Kw/h

Electricity in a Phnom Penh slum: $2.00 per Kw/h

Loaf of bread in a US suburban supermarket: $1.19

Loaf of bread in a US ghetto store: $3.79

Access to responsibly-priced credit can make a significant difference to the gap…

Page 7: Meet Joe. - Microfinance · 2017. 9. 14. · Moderator: Ms. Debbie Watkins, Managing Director, APMEA Fern Software Mr. Bruce Mackinlay, General Manager Credit & Data Bureau (PNG)

Total Banking Solutions

… but to access responsibly-priced credit, you generally need to have a FICO credit rating (or something similar).

Joe doesn’t have a FICO credit rating.

Page 8: Meet Joe. - Microfinance · 2017. 9. 14. · Moderator: Ms. Debbie Watkins, Managing Director, APMEA Fern Software Mr. Bruce Mackinlay, General Manager Credit & Data Bureau (PNG)

Total Banking Solutions

How is a FICO score calculated?

Page 9: Meet Joe. - Microfinance · 2017. 9. 14. · Moderator: Ms. Debbie Watkins, Managing Director, APMEA Fern Software Mr. Bruce Mackinlay, General Manager Credit & Data Bureau (PNG)

Total Banking Solutions

Personal or demographic information such as age, race, address, marital

status, income and employment can be taken into account.

Lenders can build customized “application scores” that use information

Joe supplies in his loan application.

Newer “alternative” credit scores look at other sources of information,

such as whether or not Joe pays his bills on time (including utility bills,

rent, and more).

Some companies have been following a more qualitative approach, using

psychometric tests or video polygraphs.

So what about Joe?

Page 10: Meet Joe. - Microfinance · 2017. 9. 14. · Moderator: Ms. Debbie Watkins, Managing Director, APMEA Fern Software Mr. Bruce Mackinlay, General Manager Credit & Data Bureau (PNG)

Total Banking Solutions

The relative importance of all of these components:

• are different in different countries, or different regions in

different countries, or different market segments in

different regions in different countries….

• and may change over time….

• and you don’t know if they are accurate until you’ve

tested them with real customers

However….

Page 11: Meet Joe. - Microfinance · 2017. 9. 14. · Moderator: Ms. Debbie Watkins, Managing Director, APMEA Fern Software Mr. Bruce Mackinlay, General Manager Credit & Data Bureau (PNG)

Total Banking Solutions

Random forest

Chi-square automatic interaction detection

Predictive analytics

Multivariate adaptive regression splines

Logistic regression

Page 12: Meet Joe. - Microfinance · 2017. 9. 14. · Moderator: Ms. Debbie Watkins, Managing Director, APMEA Fern Software Mr. Bruce Mackinlay, General Manager Credit & Data Bureau (PNG)

Total Banking Solutions

Page 13: Meet Joe. - Microfinance · 2017. 9. 14. · Moderator: Ms. Debbie Watkins, Managing Director, APMEA Fern Software Mr. Bruce Mackinlay, General Manager Credit & Data Bureau (PNG)

Total Banking Solutions

Microfinance | Credit Unions | Enterprise Investment & Development | SME Loans | Development Banks | CDFIs / CFDCs |

Housing Finance | Loans | Deposits | MIS | CRM | Risk Management | Business Intelligence | SEPA Compliant | Online Payments |

Web Processing | Touch Screen Technology | Mobile | Tablets | Online Dashboards |

www.fernsoftware.com

Moderator: Ms. Debbie Watkins, Managing Director, APMEA

Fern Software

Mr. Bruce Mackinlay, General Manager

Credit & Data Bureau (PNG) Limited

Ms. Bhavana Srivastava, Associate Director

Inclusive Finance and Banking, MicroSave

Mr. Ajay Verma, General Manager

South Pacific Business Development (SPBD) Microfinance, Samoa