Link: Kenya Business Daily
Forget about track records, banks ﬁnd that new personality tests make lending safer than ever
By: Larisa Brown
A search that began at Harvard for a way to identify safe business borrowers has seen a test rolled out in Kenya that is reshaping SME ﬁnance.
Recent months have seen the roll out of an entirely new kind of ﬁnance in the Kenyan market, focused on fuelling the growth of high-impact SMEs in order to create the ‘missing middle economy’ in the country’s business arena.
The new system, which provides ﬁnance to entrepreneurs based on psychometric testing, is set to revolutionize the shape of Kenyan banking by fast-tracking the expansion of emerging businesses led by entrepreneurs with the right character and proﬁle for future success, rather than lending based on their previous track record and credit history.
To read more, please visit: Kenya Business Daily.