Alternative credit scoring model using transactional behaviour and cash flow patterns — expanding approvals to creditworthy customers with thin bureau files, validated over 24 months with no increase in default rate.
The client bank serves a significant customer base with thin or no credit bureau files — agricultural workers, small traders, and rural customers — who were being systematically declined by traditional scoring models despite demonstrating sound financial behaviour through their transaction history. The bank needed a way to extend credit responsibly to these underserved segments.
CALIGO built an alternative credit scoring model using transactional behaviour, cash flow patterns, and seasonal income signals from the bank's own data — bypassing reliance on bureau scores. The model was validated against 24 months of realised default data to confirm that the expanded approval cohort performed within acceptable risk parameters.
Approval rate increased by 18% for the target segment with no statistically significant change in default rate over the validation period. The model enabled the bank to serve creditworthy customers who had previously been excluded by traditional scoring — advancing the bank's financial inclusion mandate while maintaining portfolio quality.