Socio Economic Profiler (SEP) is a bespoke credit scoring system that uses location intelligence and socio-economic context anchored around the borrower’s anonymised residence location, to evaluate the creditworthiness of borrowers, particularly new-to-credit (NTC) and small business loans.
Conventional credit scoring solutions are falling short, and there is a growing need for alternate data. SEP uses public macro-economic data sources to create a bespoke “probability of default” score based on the borrower’s socio-economic context and residence location. This allows lenders to view India as 13 million micro-markets, reducing portfolio risk and increasing business, particularly in the NTC segment where conventional data is unavailable.
SEP helps lenders to grow business volumes without increasing risk. Lenders can also use SEP to make more informed market expansion decisions and it can serve as early warning signals for collections.
