In this video series-2, Mark Schreiner, Director, Microfinance Risk Management, talks in detail how credit scoring system works. In rich countries, lenders often rely on credit scoring— formula to predict risk based on the performance of past loans with characteristics similar to current loans—to inform decisions. Can credit scoring do the same for microfinance lenders in poor countries? Does scoring have a place in microfinance? Answering these questions, Mark outlines the importance of MIS in a scoring system. Mark also explains what kind of MFIs should opt for Credit Scoring System.

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