In Latin America alone, there is a $1.4 trillion funding gap for small businesses in emerging markets, particularly impacting informal microentrepreneurs who find themselves excluded from formal financial systems. This exclusion is primarily from two interconnected issues. The existing mechanisms from the traditional banking system are unfeasible for verifying financial history, leading to scarce and inadequate alternative debt structures for individuals who, for various reasons, are financially marginalized. An AI-driven credit score system able to evaluate users’ digital behavior, sales data, customer feedback, and sociodemographic information could offer a comprehensive assessment of creditworthiness beyond traditional metrics. The alternative AI score not only could lead to enhanced financial inclusion by providing critical data that could enable broader access to credit but also aims to foster greater trust in alternative debt structures therefore addressing the financial exclusion problem by many emerging markets.
Fostering Financial Inclusion: AI-Driven Solutions and Inclusive Debt Structures for Emerging Economies
Track
AI = Accelerating Impact
Format
Brief and Bold (1 Speaker, keynote style)
Speakers
- NameMercedes Bidart
- TitleCEO
- OrganizationQuipu
Description
In Latin America alone, there is a $1.4 trillion funding gap for small businesses in emerging markets, particularly impacting informal microentrepreneurs who find themselves excluded from formal financial systems. This exclusion is primarily from two interconnected issues. The existing mechanisms from the traditional banking system are unfeasible for verifying financial history, leading to scarce and inadequate alternative debt structures for individuals who, for various reasons, are financially marginalized. An AI-driven credit score system able to evaluate users’ digital behavior, sales data, customer feedback, and sociodemographic information could offer a comprehensive assessment of creditworthiness beyond traditional metrics. The alternative AI score not only could lead to enhanced financial inclusion by providing critical data that could enable broader access to credit but also aims to foster greater trust in alternative debt structures therefore addressing the financial exclusion problem by many emerging markets.
