Fintech firms are offering tailored credit services quickly with high client interaction, using novel ways to analyse data and assess borrowers needs and repayment abilities.
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.