Behavioural underwriting using non-traditional data sources: Evidence from stokvels
The proceedings of 3rd Business Doctoral and Emerging Scholars Conference
Edith Cowan University - School of Business and Law
School of Business and Law / Markets and Services Research Centre (MASRC)
This study explores behavioural underwriting techniques in the context of informal markets. These markets utilise non-traditional data sources to understand financial behaviour especially savings and credit. The informal stokvel markets in South Africa are examined and found to display similar behavioural underwriting principles to those applied in developed markets which use more traditional and sophisticated data and techniques. This paper offers insight into how informal markets use unstructured behavioural data in credit decisions through behavioural underwriting.