Credit scoring, risk, and consumer lendingscapes in emerging markets
Statistical modelling has superseded traditional methods of assessing character and trustworthiness through personal knowledge and face-to-face interaction. Advances in credit scoring allow lenders to extend loans to a wider proportion of the population in spatially disparate locations and simultaneously reduce losses associated with nonperforming loans. Contrary to scientific approaches to credit and risk assessment, cultural theorists maintain that risk should be understood through a richer reading of social and cultural analysis and interpretation. I focus on consumer lendingscapes in emerging markets as an example of understanding the social and cultural constructed nature of risk and credit scoring by assessing technological expertise, legal systems, culture, norms, beliefs, and social relations of financial institutions in specific places. There are significant problems with extending methods of credit scoring and networks of credit bureaus developed in advanced societies to emerging markets. Keywords: consumer lendingscapes, credit scoring, emerging markets
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:pio:envira:v:44:y:2012:i:1:p:111-124. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Neil Hammond)
If references are entirely missing, you can add them using this form.