Alternate credit scoring is the process by which financial services firms use alternate data sources to determine creditworthiness of an individual and approve an application in the absence of sufficient or any history in a country’s credit bureau.
This practice allows individuals who are looking to obtain a financial services product without sufficient credit history to begin their journey towards creating a credit footprint.
Alternate credit scoring drives greater financial inclusion by seeking alternate sources of data about individuals to determine their creditworthiness and approve a loan.
Mobile scoring is a form of alternative credit scoring that uses information on your smartphone to determine creditworthiness. It is now a commonly used practice by many financial services providers and fintech companies in the Philippines and around the world.
1. How does pera247 mobile scoring work?
Lenders often use a credit scoring system to measure how likely it is that a borrower will make payments on the money he or she borrows, by inferring a certain profile from documentation from the borrower, for example, from bank statements, certificate of employment etc.
In order to provide loans to people with limited or no access to financial records, pera247 innovated a new way to create a scoring system from what the majority of the population have nowadays, a smartphone. pera247 assigns a score on each data point available such as apps used and installed, contacts, SMS etc. that might be indicators of creditworthiness of an individual.
2. How does data on my smartphone (“mobile device data”) affect my loan?
In the absence of reliable credit bureau history, certain data points on the phone are predictive of an applicant's likelihood of repaying a loan on time. For example:
Note that we do not ask for access to your social media accounts to create your credit score.
3. What type of mobile device data does it use to create my alternate credit score?
pera247 technology may access the following (or similar) data from your mobile device (your digital footprint): SMS messages, contacts, calendars, list and storage of applications.
This data is used securely and privately in ways described above to assess your creditworthiness as part of your loan application.
4. When does the pera247 app collect my mobile device data?
During your first loan application, we will request for your permission to collect your smartphone information to process your application during step 5 of your application as illustrated below.This is a one time request, and you may disable the permissions subsequently (please refer to the relevant FAQ below). Please note that we may require subsequent collection of your smartphone information should you make subsequent loan applications if your first loan application is not successful.
As a repeat borrower you will not be requested to provide this information after your first loan.
5. Do you ask for my permission to collect my mobile device data?
Yes! We cannot proceed without your permission to access any information from you, your phone or from other data that you may have. All permissions that we ask from you are relevant to assess your loan application as well as your eligibility for a loan.
If you complete an application halfway or do not complete an application in one sitting, we may retain incomplete application details that you had input for a short duration in order to optimize your experience while using our app (for example, to allow you to start where you left off should you inadvertently exit the application process).
6. How often do you collect my mobile device data?
We will only collect your data once, at the time of your first loan application, with your permission. However, we may retain personal information that you provide during the loan application process for a short duration in order to optimize your experience while using our app (for example, to allow you to start where you left off should you inadvertently exit the application process). There is no further collection of data thereafter.
Please also note that we may require subsequent collection of your smartphone information should you make subsequent loan applications if your first loan application is not successful.
7. Can I revoke the permissions after I apply?
Yes, you may deactivate the permissions requested by the pera247 mobile app after the submission of your application. However, do note that certain basic permissions are required for the normal operation of the app, which would affect your regular usage and impact your experience. To turn off your permissions you can follow the directions provided by Android listed here.
8. What happens if I don’t give all the required permissions during the loan application?
You will not be able to proceed with your loan application. Without your permission to access all the necessary information to assess your loan application, we will not be able to offer you a loan.
9. How do you protect my privacy?
pera247 complies with the Data Privacy Act of 2012, its implementing rules and regulations, and all related issuances with and is registered with NPC Registration No. PIC-000-496-2021. As such, we treat your privacy with the utmost importance. Following are our security measures in place:
10. Does this help me create a history in the credit bureau?
Yes, as a Securities and Exchange Commission (SEC) registered entity, pera247 is required to submit all information pertaining to loans and repayments to the credit bureau as mandated by Republic Act No. 9510 or the Credit Information System Act (CISA).
11. I have two phones, which one should I use to apply?
We recommend using your primary phone on which you conduct most of your daily/routine activities as this would be representative of you as an individual and likely to have more relevant data (and hence, serve as a more comprehensive source of information to determine your creditworthiness) .
pera247 Lending Corporation is a duly registered lending company under SEC (SEC Registration No.: CS201734339 with Certificate of Authority No.: 2582)
pera247 Lending Corporation adheres to the strictest of standards in responsible lending as governed by its board of directors, including compliance with: 1) registration and certification with the National Data Privacy Commission (No.: PIC-001-172-2019); 2) Truth-in-Lending Act; 3) Fair Collection Practices; 4) Anti-Money Laundering; and 5) membership in Fintech Protects Community of Practice by The Smart Campaign, an initiative of the Center for Financial Inclusion (CFI) at Accion.