We expect the survey to provide us with a better understanding of MSME access to finance and support evidence-based policymaking. To appreciate the value of data for financial inclusion, we may look at alternative data for credit scoring as a promising use case. One challenge in securing credit is that forecasting creditworthiness traditionally involves analysis of the historical credit exposure of a borrower.
However, many Filipino adults and MSMEs do not have or have very little credit history. The use of alternative data in credit scoring is an innovation that addresses the challenge of predicting the creditworthiness of the so called credit invisible. Unlike traditional data which is composed of bank transactional data and credit bureau information, alternative data come in many forms.