EFL enabled a 16% increase in micro loans
Banco Financiero, a top 10 Peruvian commercial bank, sought to expand lending in the micro segment. More specifically, the bank recognized an opportunity in lending to micro enterprises declined by traditional lenders because of a lack of credit information, bureau records and documentation.
Banco Financiero engaged EFL in July of 2013 help drive growth in the micro segment through better risk assessment. The bank developed a new credit product and used EFL’s psychometric scoring methodology as its primary risk measurement tool.
Over the course of the first 12 months of the engagement, Banco Financiero administered nearly 5,000 EFL applications and disbursed nearly 2,900 new loans using the EFL tool. Encouraged by EFL’s ability to measure risk and aid growth, Banco Financiero has invested in the expansion of the EFL tool in its Peruvian branch network.Download Full Case Study
* Default reduction refers to the impact of removing the bottom two quintiles of EFL scorers from the borrowing population