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Expansion of AI-Driven Credit Scoring and Merchant Platforms in Financial Services
Importance: 85/1002 Sources
Why It Matters
The increasing adoption of AI in credit scoring and the development of modern merchant platforms highlight a global shift towards leveraging technology to expand financial access, improve risk management, and unlock new market segments, especially in emerging economies and for previously underserved populations.
Key Intelligence
- ■EthSwitch, Ethiopia's national payment operator, is launching a new merchant portal and an AI-driven credit scoring system.
- ■The EthSwitch initiative aims to enhance financial inclusion and improve risk assessment for borrowers in Ethiopia.
- ■Companies like Pagaya utilize AI credit models to originate loans, focusing on non-prime borrowers, and then sell these loans to institutional investors.
- ■These AI models are designed to provide more accurate credit assessments by analyzing diverse data, potentially expanding access to credit for underserved populations.