
Is a credit system for the Bottom Up economy feasible and beneficial? - nassirkhan
I&#x27;ll be travelling to my home country of Kenya to build out my company www.5group.co . While there, I want to research trends in credit and lending especially with regards to those earning less than $3000&#x2F;year (apx. bottom of the pyramid). Would a FICO like agency for Sub-Sharan Africa open up new lending frontiers and thus lead to upward mobility for the masses? What considerations might need to be made?
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brudgers
{random internet advice}

FICO matters in a competitive market for good customers, where good customers
borrow significant amounts of money and are relatively low risk due to having
access to cash income streams. Where customers may not have ready access to
cash [e.g. operating in informal economies or living more closely to direct
agricultural subsistence], then the risks more systemic and less tied to the
individual. When the amount borrowed is small, the overhead of a credit check
may be a non-trivial cost for the lender. This suggests that there may be a
tipping point between flat rates that reflect a more or less uniform risk and
individual rates that reflect variance in individual's economic behavior.

Good luck.

