Next-Generation Credit Scoring: Leveraging AI to Integrate Alternative Data for Financial Inclusion

• Author(s): Godwin David Akhamere
• Paper ID: 1710203
• Page: 1112-1124
• Published Date: 31-08-2024
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 8 Issue 2 August-2024

Abstract

A new suite of AI-powered credit scoring systems that richly incorporate alternative data-including mobile payments, telecommunications data, behavioral digital traces, and psychometric indicators-can provide a new approach to broadening access to credit by members of traditionally underserved communities. This paper presents a conceptual motivation to exploit the predictive accuracy and fairness potential of these non-conventional inputs over the traditional scoring models of the past. Basing the evidence on quantitative research, case studies, and theory analysis we are developing a more specific research question and testable hypothesis. Finally, the paper will also attempt to lay out a road-map on how a robust ethical credit can be deployed, which in a globalized world will need to be inclusive of diversities of economies.

Citations

IRE Journals:
Godwin David Akhamere "Next-Generation Credit Scoring: Leveraging AI to Integrate Alternative Data for Financial Inclusion" Iconic Research And Engineering Journals Volume 8 Issue 2 2024 Page 1112-1124

IEEE:
Godwin David Akhamere "Next-Generation Credit Scoring: Leveraging AI to Integrate Alternative Data for Financial Inclusion" Iconic Research And Engineering Journals, 8(2)