How fintech can bridge the credit gap for first-time borrowers

NFBCs have typically extended loans to customers depending on the individual credit score. The credit score serves as a benchmark for evaluating or underwriting a person’s trustworthiness. Several criteria such as loan duration, debt levels, salary, financial history, and repayment ratio are examined to assess the debtor’s capacity to repay debt. However, this leaves many prospective borrowers with an actual ability to pay back a financed loan, rejected by conventional credit issue systems, because of the lack of standard data.

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Source: https://www.fintechnews.org/how-fintech-can-bridge-the-credit-gap-for-first-time-borrowers/