February 17, 2016
It’s tough credit scoring at the bottom of the pyramid. We know! That’s why we had Manuel Andrade Aparicio, COO at IluMéxico join us in a webinar to take you through how to create an offline credit scoring system with TaroWorks in just a few easy steps. It has worked for IluMéxico and could work for your organization too!
Step 1: Define possible criteria for loan performance
For IluMéxico, they used the following:
To help figure out a criteria, incorporate various dynamics of the community and its members. This will help you better understand potential loan performance.
Step 2: Programming your survey and assigning scores
The survey created by IluMéxico allows them to capture scores in TaroWorks. What IluMéxico did was define a score group which was the sum of all points based on the responses they received.
Remember with TaroWorks, you’re able to make credit scores available offline to field officers.
Step 3: Classify scores
IluMéxico used two parameters based on income and trust. When combined, they formed a credit classification system.
Step 4: Be patient and let the data roll in
IluMéxico began collecting data in September 2014 and by January 2016 they had finished 700 loans.
Remember things take time.
Step 5 & 6: Analyse and implement
You need to understand ‘What you’re doing’ and ‘What your expectations are!’
For example, IluMéxico did the following:
Have any questions or comments? Email us!
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