A New Model to Expand Credit Access Globally: How predictive cash flow modeling could help provide credit to the more than 130 million businesses and 1.4 billion individuals who lack access.

This article discusses the issue of limited access to credit in developing countries, where over 130 million businesses and 1.4 billion individuals lack access to credit. The high costs and complexity of providing credit in these markets have resulted in limited access. The article proposes the use of predictive cash flow modeling (PCM) as a solution to assess individuals' ability to repay loans, even with limited data. PCM involves using statistical models to forecast income and expenses for specific population segments, allowing lenders to determine the appropriate amount of credit to offer. The article suggests that PCM could significantly expand credit access to those who are currently excluded. [Extracted from the article]