How would you feel if you were invited to the moon? If you found a gold coin, would you save it, give it to charity or splurge on a holiday? Personality quizzes of this kind—“psychometrics”, in the jargon—are already the bane of many a jobseeker. Now, it is being applied to the oldest problem in finance: will a borrower repay?
In rich countries, lenders use credit scores to weigh risk. But just 7% of Africans and 13% of South Asians are covered by private credit bureaus.