“Think Analytics Algo360 harnessing non-traditional data”. The type they receive from your social media, purchases, and device – to make credit even more accessible to Indians. The Neotia Group in Kolkata and Microsoft Inc. in Kochi are trying to play a bigger role as startup mentors. And fintech key Razorpay has acquired payroll and HR management software company Opfin.
The startup is mining alternative details – obtained from users’ phones with their authorization through an application – that is used by several of India’s biggest lenders to evaluate a person’s credit behavior. It addresses your mobile data, app data, and even social media data which, based on founder Amit Das, results in lower risks for better access and banks to credit for Indians.
“Our Algo360 risk score could reliably predict a loan default, and can help lenders make choices in real-time,” he added. That will come at a moment when bureau data continues to be inaccurate and sparse in India. Of the adult population just 20-25% folks have decision-driving or credible data captured in credit bureaus, Das believed. The majority end up paying higher interest rates, in case they get access to loans in the very first place.
“My driver couldn’t open a savings account. He struggled for days prior to getting rejected by the banks. There is no chance of him getting a loan from 1 of national banks,” Das said. “But, by comprehending the manner in which he recharges the phone of his, or perhaps pays electricity bills, or perhaps, by understanding the mobile phone device he uses, and the reality that his geo-location data suggests serious geographic balance, 1 can understand their credit-worthiness.”
Founded 5 years back, Think Analytics has bagged numerous high-profile clients. It sources data for 3 of India’s 5 largest private banks, and over 17 other fintech companies and lenders, the founder stated, choosing never to name the businesses. Additionally, it works with 10 international fintech companies and lenders with an India presence.
On the other hand, it’s access to 1.5-3 million new profiles each month on a continual basis. Which compared to much more than 2.5 3 billion inquiries serviced by regular credit bureaus every year. “We think that alternative data inquiries and profiles will shock bureau penetration in the following 2-3 years, provided the expanded reach they offer for companies looking to expand.” To make sure, even though the startup helps mine the data, the information is owned and operated by the lenders or the application proprietors, Das said.
Is This Legal?
Alternate data is harnessed through collecting just about all mobile, applications, spending and geographical data, typically through one’s phone. But is this legitimate?
The answer is YES.
It is determined by the use-case or situations, Das said. “It’s topic to them declaring reputable use cases to the clients and obtaining their consent…The key is in’ relevant use-cases’,’ prominent disclosure’ and’ informed consent’,” he stated.