Two organizations that facilitate lending to people and small businesses with limited credit histories, US-based Entrepreneurial Finance Lab (EFL) and Singapore-based Lenddo, recently merged. Prior to the merger, the organizations had completed a total of 5 million credit evaluations facilitating USD 2 billion in lending by 50 banks, microfinance institutions, insurers, retailers and telephone companies in 20 emerging markets.
Lenddo CEO Richard Eldridge said, “We’re excited to advance our mission of financial inclusion on a global scale….” Regarding privacy, a press release indicates that potential borrowers “will be empowered to choose if and when to use their own digital data.”
EFL’s algorithms are based on psychometric testing, whereas Lenddo’s use data such as mobile phone and social media usage. The combined organization also will provide other services, such as identity verification.
Sources and Additional Resources
PR Web press release
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.
- MICROCAPITAL BRIEF: Alternative Credit Scoring Firm MicroMoney, Peer-lending Platform Karma Partner to Promote Financial Inclusion
- MICROCAPITAL BRIEF: Water.org’s WaterEquity Borrowing $20m from Overseas Private Investment Corporation for WaterCredit Investment Fund 3 to Finance Water, Sanitation Systems in Asia
- MICROCAPITAL BRIEF: Tanzania Launches Mobile Money Monitoring (M3) Platform, Regulates Mobile Money Transactions
- MICROCAPITAL BRIEF: Ericsson Plans Emergency Electronic Wallet System for Disaster Relief
- MICROCAPITAL BRIEF: India’s Bharat Sanchar Nigam Limited (BSNL), Mobikwik Unveil Mobile Wallet