Your missed calls, phone model to determine loan access

KEY POINTS

  • Creditinfo Head of East and Southern Africa, Kamau Kunyiha announced that credit companies will no longer rely only on information gathered by financial institutions, but personal will be partly influence decision-making.

  • The analysis shows that even how long people stay on one telecom operator’s services shows their financial trustworthiness.

  • The longer someone uses the same telco’s services, the more financially reliable their loan-payment history is while customers who frequently change operators demonstrate a higher level of risk.

  • People experiencing financial difficulties avoid answering calls as they do not want to talk with creditors or with relatives to whom they may also be in debt.

You missed calls and how expensive your phone model is. will in the future determine whether one can get a loan or not. Additionally, that data will be used to determine if someone qualifies to take goods or credit.

Creditinfo Head of East and Southern Africa, Kamau Kunyiha announced that credit companies will no longer rely only on information gathered by financial institutions, but personal will be partly influence decision-making.

“Personal data can only be used with the person’s consent however practice shows that openly sharing additional information increases a creditor’s trust,” he said.

The analysis shows that even how long people stay on one telecom operator’s services shows their financial trustworthiness.

The longer someone uses the same telco’s services, the more financially reliable their loan-payment history is while customers who frequently change operators demonstrate a higher level of risk.

 

Kamau Kunyiha, CreditInfo Regional Manager, East and Southern Africa.

Those without 4G and who use minimal mobile internet are also considered a higher-risk group.

Creditinfo analyst Allan Anyona notes that individuals who are less financially reliable tend to have more modest internet plans and rush to connect as quickly as possible to free Wi-Fi networks at home and elsewhere.

Moreover, it was observed that the more advanced the network connection a potential customer’s phone supports, the greater their creditworthiness.

Many missed calls points to a frequent debtor as creditors get useful insights about whether a potential customer often fails to answer incoming calls.

People were divided into five categories: those who fail to answer calls very often, often, an average amount, rarely, and very rarely.

It turns out the most financially reliable were those in the last two groups.

“We assume that people experiencing financial difficulties avoid answering calls as they do not want to talk with creditors or with relatives to whom they may also be in debt,” the Creditinfo Group analyst said.

With smart devices revealing increased information about consumers, creditors are eager to actively look at other habits too like the use of a mobile wallet.

The more punctually a customer tops up their mobile wallet limit and the bigger their income, the higher their credit rating will be.

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Additionally, a  future customer may be asked to play a quiz that takes 5-7 minutes and their response could determine their creditworthiness.

Kamau Kunyiha adds that the challenges of the pandemic in 2020 are also changing the rules for rating businesses.

.For instance, a new indicator for the impact of Covid-19 has altered the current ratings of companies all over the world.

It shows how the coronavirus pandemic has impacted every area of business (e.g., tourism, hotels, manufacturing, transport, etc.) and how companies’ creditworthiness relates to the geographic location of their operations, demand for the goods they produce, and possibilities for quickly recovering after restrictions and quarantine end.

 

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