Journal of Microfinance / ESR Review
Article Title
Abstract
Can scoring models help microlenders in poor countries as much as they have helped credit-card lenders in rich countries? This paper presents a scorecard that predicts the probability that loans from a microlender in Bolivia will have arrears of 15 days or more. Although arrears in microfinance depend on many factors difficult to include in scorecards, the paper shows that inexpensive, simple-to-collect data does have some predictive power. In micro-finance, scoring will not replace loan officers, but it can flag high-risk cases and act as a cross-check on loan officers' judgment.
Biography
Mark Schreiner is a Senior Scholar in the Center for Social Development at Washington University in Saint Louis and a consultant with Microfinance Risk Management. He works to help the poor build assets via improved financial services. Website: http://www.microfinance.com
Section
Articles
Journal Title
Journal of Microfinance
Issue and Volume
6-2
BYU ScholarsArchive Citation
Schreiner, Mark
(2004)
"Scoring Arrears at a Microlender in Bolivia,"
Journal of Microfinance / ESR Review: Vol. 6:
Iss.
2, Article 5.
Available at:
https://scholarsarchive.byu.edu/esr/vol6/iss2/5