Expanding Credit Access through Cash‑Flow Underwriting and Machine Learning
Traditional credit scoring models often fail to capture the true creditworthiness of millions, particularly underserved MSMEs and individuals who have thin credit files or lack of formal history. Utilizing real-time cash flow data -using real-time checking, savings, and transaction data - offers a more holistic view of a borrower’s financial health. This enables lenders to access granular insights of income and spending patterns to build a more accurate profile of financial behavior. Leveraging machine learning (ML) helpsvidentify risk patterns that traditional linear models overlook, significantly expanding access without compromising institutional safety. This evolution represents a critical junction where technological innovation meets regulatory necessity, offering a scalable pathway to reduce the credit gap and foster a more equitable financial ecosystem.
This webinar will explore:
- Efficacy of cash flow data in credit underwriting.
- Findings from the latest empirical research by FinRegLab: "Advancing the Credit Ecosystem: Machine Learning & Cash Flow Data in Consumer Underwriting."
- ML governance including explainability, accountability, transparency and oversight requirements for regulatory supervisory authority.
- Intersection of consumer protection and data protection.
- Opportunities of market scale driven by collaborations.
Why Attend?
- Learn what FinRegLab’s research reveals about the combined impact of ML and alternative data.
- Understand how SME lenders can operationalize these insights to serve thin-file entrepreneurs.
- Gain insights into what governance and transparency practices are essential when adopting ML-driven underwriting.
Participants are encouraged to submit their questions in advance through the registration link to ICCR Secretariat iccrsecretariat@worldbankgroup.org or Collen Masunda cmasunda@ifc.org.
Audience
The audience will consist of ICCR and SME Finance Forum members which covers central banks, financial regulators, data protection authorities, and private sector representatives including credit bureaus, banks, fintechs, non-bank financial institutions, development finance institutions, credit guarantee companies, and microfinance institutions.
SPEAKERS
Opening remarks
Adel Meer, Manager, SME Finance, Solutions & Impact, Knowledge Bank, World Bank Group
Moderator
Collen Masunda, ICCR Secretariat and Senior Specialist, SME Finance Impact & Solutions, Knowledge Bank, World Bank Group
Presenter
Melissa Koide, CEO, FinReg Lab
Discussants
Andrea Golden, Vice President International Analytics Development and Delivery for Scores, FICO
Laura Chioda, Director of Research at the Institute for Business and Social Impact (IBSI), University of California, Berkeley
Jonah E. Kaplan, Senior Program Manager, Consumer Reporting Markets, Consumer Financial Protection Bureau (CFPB) // Speaking in personal capacity