How to Lend Money to Strangers

ConfirmU's Journey in India: Key Milestones and Success Stories Imagine a farmer in rural India who has a strong repayment history but needs a formal credit score. He approaches a local bank for a small loan to buy better equipment, but traditional credit assessment methods need to recognize his potential, and his loan is denied. Now, consider a different scenario: a new, innovative credit scoring system identifies his true creditworthiness, allowing him to secure the loan. This is the revolution that ConfirmU is bringing to the Indian financial landscape. ConfirmU began its journey in India in December 2020, partnering with Experian, Sonata Finance, and the Grameen Foundation. The collaboration focused on 30,000 women in Uttar Pradesh and Madhya Pradesh, marking the start of ConfirmU’s mission to enhance financial inclusion in India. Key Milestones in India 1. Partnership with Bridge2Capital In April 2021, ConfirmU teamed up with Bridge2Capital, further embedding itself in the Indian financial ecosystem. 2. Pilot with a leading private bank In September 2021, a pilot with a leading partner bank underscored ConfirmU’s growing influence within India’s banking sector. 3. Collaboration with Urban Money ConfirmU’s collaboration with Urban Money in July 2023 further solidified its presence in the financial services sector. Challenges in the Indian Market 1. Risk Aversion Among Lenders The Indian lending market is often characterized by a cautious & extremely conservative approach, making introducing and adopting new credit assessment models challenging and a long awaited cumbersome process. 2. Market Education Educating the market on the value of innovative solutions like ConfirmU’s is difficult, with many lenders comparing them to traditional credit benchmarks like CIBIL. 3. Lack of Commitment There is often a lack of commitment and communication from lenders to fully test and implement new models, slowing the adoption of innovative solutions. ConfirmU’s Proven Expertise Lending Target Groups: Consumers and Small Businesses. Predictive Models: Assess intent and willingness to pay. Outcomes: Improved predictions for default and approval, leading to better loan offer acceptance rates. Success Story: Reducing Rejections in South India A significant case study from South India highlights ConfirmU’s impact. A leading NBFC-Fintech faced high rejection rates due to strict business filters. ConfirmU’s model re-evaluated previously rejected applications, bypassing most exclusion rules except for compliance checks: Eligible Among Previous Rejects: 56.5%. Confirmed Using ConfirmU's Model: 32.12%. Percentage of Customers Paying Once Confirmed: 82.4%. Overall Increase in Scorable Base: 88.6%. Ready to Enhance Your Credit Assessment? Partner with ConfirmU today and discover how our models can help you unlock new opportunities in the Indian market. Contact Us to learn more.

Picture this: Your customer places an order online and, instead of idly waiting for the delivery, gets an invite to play a simple 3-minute game. No personal data is required—just a fun, engaging game that evaluates their creditworthiness based on psychometric insights! 🎮 Here’s how it works:  -Play anywhere, anytime: right after an order or within 24 hours.  -Instant perks: Incentivize them with discounts or premium offers for participating.  -Seamless setup: All you need is a URL and API from ConfirmU, and you're ready to go! And guess what? 47% of users engage longer when games are involved, resulting in smarter credit decisions. Ready to transform your customer experience with this game-changing solution? Let’s make it happen with ConfirmU! #Fintech #CustomerExperience #CreditScoring #Gamification

Case Study: How ConfirmU Transformed Loan Approvals with Gamified Assessments . In the competitive world of microfinance, lenders often face the dual challenge of mitigating risk while increasing loan disbursals. ConfirmU has introduced an innovative solution through loan gamified assessments that address these challenges head-on. This case study highlights the transformative impact of ConfirmU's approach on one of our clients, a leading Microfinance Institution (MFI) in Cambodia. The Challenge They Faced Our client, a leading MFI in Cambodia, struggled with several significant issues: Risk-Averseness: The institution's stringent risk policies resulted in numerous loan rejections, missing out on potential creditworthy customers. Market Education: Lenders were skeptical about new engagement methods and failed to see their potential compared to traditional credit assessment benchmarks like bureaus Scores. Commitment Issues: There was a lack of willingness and ability to test and adopt new assessment techniques. These challenges led to a high number of loan rejections and missed revenue opportunities. The Solution We Proposed ConfirmU's gamified assessments provided a groundbreaking solution. By leveraging psychometric data, we could identify creditworthy individuals who were previously overlooked by traditional risk models. Our assessments evaluated inherent personality traits and behaviors, providing a more comprehensive understanding of an applicant's creditworthiness. Here’s how we achieved this: Overturning Rejections: We focused on applicants who had been rejected by the lender's traditional risk model. These individuals were invited to play our gamified assessment, which measured their motivation and intent to repay a loan. Scoring Model: Our proprietary scoring model analyzed the data from the gamified assessments. It identified applicants with high motivation and intent, signaling their reliability as potential borrowers. The Results The impact of implementing ConfirmU's solution was profound: Loan Approvals: This significant overturn in loan rejections led to new revenue streams for the lender. Revenue Increase: The client saw an impressive $150,000 increase in revenue from 9,750 games played by loan applicants. Accuracy:With an 82% accuracy rate, our model effectively identified reliable borrowers, ensuring the lender could confidently approve more loans. Risk Management: Despite the increase in loan disbursals, there was no corresponding rise in risk, showcasing the effectiveness of our psychometric loan assessments in maintaining loan portfolio quality. This case study is just one example of how ConfirmU's innovative approach has transformed loan approvals, unlocking new revenue opportunities and effectively managing risk. If your financial institution is facing similar challenges with loan approvals and risk management, ConfirmU is here to help.Our gamified assessments can provide the insights you need to figure out new revenue streams

I have spent the last few weeks flitting around Europe for the summer and will do so again - when Akani Simbine wins a historic gold medal at the Olympics, I'll be there, albeit in the furthest corner of the stadium. All of which is to say that there is no new episode of HTLMTS today and there won't be again next week. However, so as not to leave you all hanging, I've dropped a recent episode of hAIghtened senses, my other podcast into the stream. https://lnkd.in/d2Y5YeyR

Stand in front of a large world map with your arms out in front of you, about shoulder length apart… Now swipe your right hand anticlockwise/ down and inwards - as you do so, you’re traversing diverse and often under-discussed parts of the world: the Middle East, Türkiye, and Africa. That’s Adrian Pillay’s playground. In today’s episode of How to Lend Money to Strangers, I’m chatting to Adrian about AI, about credit data, and about how Provenir are bringing their cutting edge solutions to new and interesting markets. https://lnkd.in/eD2dzJEW

The home of mobile lending is evolving again, maintaining East Africa's reputation as one of the most innovative and exciting lending markets in the world. But I say that as an outsider, Paul Weiss is on the ground with the lenders that are shaping the narrative, so I chat to him about the burning issues on the minds of the Board's of those lenders and how Simbuka's next-generation loan management platform is making lending simple for them. https://lnkd.in/dxTf7myB

🎙️ Argh, is that my voice? 😆 Ever wondered what it's like to lend money to strangers? Well, wonder no more! I recently had the pleasure of adding my two cents of wisdom at the How to Lend Money to Strangers podcast. We covered it all: from my master thesis adventures in Indonesia to the jump from Accenture to Simbuka and explaining my job to my mom (spoiler: she still doesn't get it..😅). Oh, and why East African banks are sitting on a pot of gold! Big thanks to Brendan Le Grange for featuring me alongside lending leaders from 50 countries. Give it a listen and let me know what you think! 🎧👇

I have spoken to lending leaders from 50 different countries in the first150+ episodes of How to Lend Money to Strangers, and I'm super proud of that global reach. It's not always easy - languages and timezones and rickety internet connections - but sometimes it is, because your guest has done all the international leg work for you 😁 . That's the case in the latest episode, as I chat to Charlie Wise about his team's globe-spanning research into the whys and wherefores of credit self-monitoring. Everyone is monitoring their credit reports these days, but their motivations are different and so there's no one-size-fits-all metric for measuring success - we talk about that; we talk about what we can learn from the data and what we can learn from talking to the customer directly, whether those customers are in Mumbai or Miami; and we talk about the many ways in which better-informed borrowers can become better borrowers overall. Links to the full show will be in the comments below, do click through and give that a listen, and then seek out your local TransUnion rep to learn more.

In the last five years, one hundred million Americans have started to monitor their credit reports with TransUnion for the first time. One. Hundred. Million. And the same thing is happening all around the world. Learn about the whys and wherefores of that trend in today's episode with Charlie Wise. TransUnion has a bird's eye view of a billion+ consumers' credit profiles, in Africa, the Americas, Asia, and Europe - Charlie's teams have leveraged that position and added the voice of the customer to deliver a globe-spanning study into the causes and effects of credit self-monitoring. https://lnkd.in/dZuq2xbw

Fuelled by regulatory changes, tech advancements, and exceptional human capital at home and abroad, it is no surprise that Kabeer Chaudhary describes Indian fintech as "the coolest party in town". I chat to him about the ten years of learning that allowed ClickMyLoan to become 'an overnight success', about learning from banks and fintechs, and about his plans to grow to a billion dollars of revenue. Join us wherever you get your podcasts, or via the link below: https://lnkd.in/d5QTAQ57 #fintech #india #digitalloan