Assessing the contribution of AI and alternative data in enhancing credit scoring accuracy and inclusivity in Rwanda, using machine learning

Credit scoring is used as a way for lenders to assess an individual or an organisation's ability to pay back debt, and to decide eligibility for some financial services. Traditional credit scoring systems work fine in developed economies, however, in developing nations such as Rwanda - where a large part of the populace lack access to formal financial institutions and credit history - these systems are not particularly relevant. As a result, cycles of poverty and economic marginalisation are sustained because broad sectors of society, notably women, rural communities and informal labourers, are excluded from credit opportunities.