Securing Data For Fintechs In Emerging Markets
Banks offering loans to small to medium size businesses (SMBs) in emerging markets face unique challenges.
Increased scrutiny under Know Your Customer (KYC) guidelines has made it more important for banks to have established processes for evaluating businesses that apply for loans. But even so, many investment banks don’t know much about their borrowers from emerging markets, making it difficult for the institution to conduct proper background checks.
For example, what if a potential borrower misrepresents the size of his or her business when applying for a loan? Or, what if a business owner accepts a loan, then moves locations or completely changes the business model without notifying the bank?
We tackle a few problems below:
Basic Data Is Often Scarce in Emerging Markets
Traditionally, banks have access to data resources that can help confirm many of the claims in a loan application. In mature economies, a simple background check will reveal many such discrepancies.
Data is much more scarce in emerging markets, however, making traditional background checks nearly impossible. In many cases, there simply aren’t data sets available that you can use to evaluate the claims made on an application.
dataPlor Explorers Can Rapidly Capture Data
dataPlor’s service is unique, offering a simple way for companies to gather data about prospective borrowers in emerging markets around the world.
We have a team of 55,000 “explorers” that can travel to the SMBs you’re evaluating. They can quickly gather information such as business name, location, industry, and hours of operation. They can capture custom data such as credit card accepted, point of sale system used, or other high-value items from a business. They can also take high-quality photos of the property.
Within days or weeks, Explorers can quickly validate an existing portfolio of loans. Then they can check any new businesses that come through the program. All data goes through a triple verification process to ensure accuracy.
Currently, dataPlor works with several financial institutions to perform these audits. We do similar audits with a large, international ride-sharing service.
Our large existing database contains information on businesses across Latin America — most of which is simply not available from traditional data brokers.
Finally, by visiting the site in person, dataPlor’s Explorers can promote growth for the banks we work with. While physically on site, our team can conduct lead warming activities. These include engaging with decision makers and distributing marketing materials to local business owners.
Currently, dataPlor performs this role for a multinational financial institution by providing high-quality leads to the bank.
Want to learn more about how dataPlor can help you?