Banco G&T Continental

72% Decrease Default Rate
Guatemala

Through the partnership with EFL, G&T succeeded in decreasing default rate by 72% and increasing client base by 53%.

The Challenge

G&T’s attempts to serve financially-excluded businesses proved to be challenging and revealed the limitations of traditional credit risk tools.

The Engagement

G&T integrated the EFL scoring tool into its existing credit-risk assessments for the unbanked and for businesses like small stores, clothing vendors and food stands.

The Results

G&T was able to increase lending to new customers in the segment by 53% while maintaining acceptable default rates. In 2014, encouraged by the results, G&T decided to extend and expand the partnership with EFL.

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* Default reduction refers to the impact of removing the bottom two quintiles of EFL scorers from the borrowing population