Microfinance institutions using AI, machine learning to disburse more loans

Tailor-made financial products are being devised, and credit histories are created for all customers. New tools have led to high collection efficiencies

Rajesh Kumar (name changed), a member of micro finance firm Cashpor Micro Credit, managed to get a loan of Rs 200,000 in March this year — the first time that he had got such a big loan amount approved. 

Since last year, Cashpor has been using neobank Kaleidofin’s Ki Score, a credit analytics tool. Kaleidofin offers targeted financial services to the underbanked and unbanked population. Thanks to KiScore, Cashpor was able to analyse Kumar’s credit behaviour, based on his past repayment records. The high credit score it gave him made him eligible for the Rs 200,000 loan. 

Kaleidofin uses robotics, machine learning