BlueSky Thinking Summary

The article introduces the approach by which this is done, namely through innovative grocery shopping behaviors in binding attribute creditworthiness assessment among people not having a traditional credit score.

Using this research by Eric Anderson and colleagues, it is found that disciplined grocery habits—for example, regularity of purchasing, keeping to one's budget, and specific purchase choices—are linked with responsible financial behavior, which includes paying loan repayments on time.

While this unorthodox approach has the advantage of not only identifying reliable borrowers but solving many challenges related to financial inclusion by giving insights into credit risk amongst the unbanked, the decision does raise ethical concerns about privacy and the use of that data.

In general, it highlights the potential role that alternative data can play in transforming financial practice from one that decreases toward one that increases access to credit amongst underserved populations within the context of a data-driven economy.