Access to fair and reliable financial services is a key driver of personal and economic growth, yet 1.4 billion adults worldwide remain excluded from the formal financial system. In emerging markets, where traditional credit models rely on historical data, millions of people face systemic barriers to obtaining credit. This exclusion limits opportunities to start businesses, build savings, or invest in education, perpetuating cycles of poverty and inequality.
However, technology is changing this landscape. FinTech solutions powered by alternative data and behavioral insights are enabling lenders to assess credit risk in new ways, even for those without a financial history. By leveraging tools like gamified psychometric assessments and device behavioral data, lenders can make fairer, more accurate decisions.
Globally, 1.4 billion adults, 24% of the world’s population, remain underserved or entirely excluded from the traditional financial system, and women are disproportionately affected by this financial exclusion.
Financial inclusion is about more than a bank account, access to fair finance can unlock transformative opportunities, allowing individuals to start businesses, invest in education, and build financial resilience.
Traditional credit scoring methods rely on historical financial data, which many underserved populations, especially women, simply don’t have. But with the rise of FinTech, lenders now have a powerful tool to bridge this gap — alternative data.
By leveraging alternative data, lenders can evaluate potential borrowers based on their behaviours and digital footprints, opening up new pathways to financial access. This innovation is critical in regions where large portions of the population operate outside formal banking systems but actively participate in local economies.
Alternative data refers to non-traditional information used to assess creditworthiness, like behavioural patterns, transaction history, or mobile usage. For example, analysing how reliably someone pays their utility bills or the frequency of their mobile top-ups can provide valuable insights into their financial habits.
Additionally, fintech companies like Begini offer gamified psychometric solutions to create first-party behavioural data. Through engaging, low-tech mobile experiences, users can demonstrate traits like conscientiousness, risk aversion, and financial discipline — all valuable indicators of creditworthiness. Begini’s approach combines behavioural analytics with predictive modelling, offering lenders reliable credit risk insights even in difficult environments.
Gamified psychometric tools can guide users through interactive scenarios that mimic real-life financial decisions, gathering behavioural data in a non-intrusive, user-friendly way, using zero personal data. These insights can help lenders identify responsible borrowers, even when no formal credit history exists. This not only helps underserved populations access financial products but also helps lenders make more accurate, risk-mitigated decisions.
Begini worked with a lender in Latin America to reach unbanked market segments, where over 60% of the population had no access to traditional banking services. By using gamified psychometric assessments and device behavioural data, the lender could build reliable risk profiles for applicants who lacked any formal credit history.
Through Begini’s white-label solution, applicants participated in a short, accessible assessment that measured cognitive traits and financial decision-making patterns. The insights allowed the lender to approve loans for 27% of previously rejected applicants, giving thousands of people access to financial products for the first time. This data-driven approach not only expanded the lender’s customer base but also maintained a healthy portfolio with controlled default rates.
One barrier to reaching underserved populations is the cost and complexity of technology. Many traditional credit scoring systems are expensive and require high-tech infrastructure. But cloud-based FinTech solutions change the game.
By offering low-cost, easy-to-deploy platforms, lenders can access powerful behavioural insights without heavy IT investments. These solutions can work on basic devices and require minimal training, making them accessible even in remote areas. Gamified tools, for example, can run on any mobile device, gathering rich behavioural data through interactive experiences that feel less invasive and more engaging to users.
This simplicity makes it easier for lenders to scale their operations, reaching new communities without drastically increasing operational costs. The ability to collect meaningful, privacy-respecting data from people who have never interacted with formal financial systems opens new frontiers for inclusive lending.
One common concern for lenders is whether expanding their market increases risk. But alternative data can actually help lenders manage risk more effectively. Behavioural insights can reveal patterns of financial responsibility, allowing lenders to make informed decisions even in the absence of traditional data.
Psychometric testing adds an extra layer of confidence. For example, lenders can assess a borrower’s risk tolerance, planning skills, and likelihood to repay through interactive assessments. This approach helps identify low-risk borrowers who may lack credit history but possess the behavioural characteristics of reliable clients.
In fact, many lenders using alternative credit scoring solutions report lower default rates, as they’re able to identify creditworthy individuals who would have been overlooked by traditional models. By integrating behavioural and character data, lenders can fine-tune their models, balancing market expansion with sustainable portfolio growth.
The combination of FinTech, alternative data, and cloud technology is transforming financial inclusion. By embracing these innovations, lenders can unlock new markets, empower underserved populations, and grow their businesses — all while managing risk responsibly.
For lenders ready to take the next step, adopting a modern, data-driven approach isn’t just a competitive advantage. It’s a chance to shape the future of finance and create opportunities for millions of people worldwide.
By integrating behavioral insights, gamified psychometric tools, and low-tech, cloud-based platforms, lenders can build a more inclusive financial ecosystem — one that works for everyone, not just those with a credit history.
SaaS technology that provides alternative data credit scores for Banks, Micro Finance, Digital Lenders, Neo Banks, BNPL and Asset Financing.
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