Can a mobile credit-scoring model provide better accessibility to South African citizens requiring micro-lending?
by Matthew Kenneth Hendricks; Adheesh Budree
International Journal of Electronic Finance (IJEF), Vol. 9, No. 3, 2019

Abstract: This paper investigates developing a conceptual model for credit scoring microfinance in South Africa. This poses an issue as the demand for micro-lending arise primarily from the lowest income groups who are normally found in rural or peri-urban areas and are not easily accessible. Current literature and research on credit scoring models within microfinance for low-income groups was found to be extremely limited. Based on current research, this paper assessed the use of collateral and collateral substitutes, innovative methods behind credit scoring and mobile technology which could drive a credit scoring model to provide access to underprivileged citizens. Based on the findings of this study, a best practice conceptual model that develops a form of credit scorecard based on an applicant's social media credit score, psychometric score, mobile credit score and the presence of collateral and collateral substitutes that can help increase accessibility of microfinance to underprivileged recipients was developed.

Online publication date: Tue, 09-Apr-2019

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Electronic Finance (IJEF):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email