FAQ

1. What is EFL’s mission?

Our mission is to expand access to finance. Small businesses and consumers struggle particularly in emerging markets because of the lack of reliable traditional credit information. We enable financial institutions around the globe to evaluate these customers based on psychometric characteristics that reflect character, willingness, and ability to repay loans.

EFL is a for-profit company with a mission to create social impact. Working commercially enables us to spur economic growth on the greatest possible scale.

2. What is psychometrics and how does EFL use it?

Psychometrics refers to the measurement of knowledge, abilities, attitudes and personality traits. EFL applies psychometric principles to credit scoring by using advanced statistical techniques to forecast an applicant’s probability of default.

3. How does the EFL Application process work?

The application is optimized for mobile-delivery, tablets or PCs and does not require an internet connection, enabling it to be administered in the office or in the field. EFL easily integrates with a lenders’ pre-established application process.

4. What do the results look like?

The EFL Application generates a 3-digit score of relative credit risk. This score can be used in many ways, including setting cutoffs for approvals, and altering pricing and product parameters. The EFL credit risk score easily integrates into existing credit scoring systems.

5. Can applicants cheat or game the application?

Ensuring reliable application responses is a primary focus for EFL. Examples of the continually-changing methods to ensure applicants and loan officers cannot cheat:

  • Content randomization: Every application includes different questions and ordering. It is also impossible for applicants to share or sell their results.
  • There are no obvious right or wrong answers: Not only are the questions designed to prevent gaming, the application collects answer patterns to detect and incorporate attempts.
  • Identity verification: EFL uses technology to collect and verify applicant information, preventing an individual from completing the application under a different name as well as repeated attempts by one individual.
  • Answer pattern analysis: the scoring system detects when loan officers have been assisting applicants, as well as when answers display unusual and unlikely patterns.

6. Since every culture is different, how is it possible to use the same EFL application to score people around the world?

Just as bank applications around the world share many commonalities, industry reports and our data have proven that similar characteristics define successful entrepreneurs everywhere, though the relative values of those characteristics vary from market to market. When predicting the loan performance of an applicant, we compare his/her business skills, intellect, attitudes and beliefs, and ethics and honesty to that of similar entrepreneurs in his/ her home country and that of applicants around the world.

7. In which language is the EFL application?

To date, the EFL Application has been translated to over 26 languages. Our platform is flexible and allows for the addition of languages with ease.

8. What statistical model does EFL use?

Our model is specifically designed to generate accurate models in new markets. In order to mitigate the risk of misrepresentative samples, EFL leverages a combination of logit regression and gradient boosting decision tree (GBDT) techniques, among others.This advanced statistical model leverages both country-specific and global data taken from a broad sample of emerging markets.

As EFL expands its presence, the EFL model learns from its own findings, placing more emphasis on country-specific data and less emphasis on global patterns observed across all markets.

9. How is the EFL score used?

The EFL score conveys an applicant’s relative credit risk in relation to peers and is used by our partners in many different ways. This new risk information enables lenders to adjust acceptance rates and design risk-based pricing, and more generally to expand lending to new markets while controlling risk or to decrease default rates of existing portfolios. Lenders

10. How successful are EFL’s products?

EFL has helped lending institutions increase loan volumes by 3x, lower default rates by 40%, and reduce operational costs. EFL works with partners across the globe to achieve their specific portfolio goals.

11. How much do EFL products cost?

Pricing is dependent upon a number of factors, including loan volumes and product, customization and scale of partnership. Please contact us or email info@eflglobal.com for more detailed information.

12. What is EFL´s Privacy Policy?

Please visit our Privacy Policy page.