Advocating for an Open Source Credit Score: Empowering Financial Inclusion with Finance for Humans

Author : Sanjay phs

Tags: Blog

Introduction:

Access to credit and financial services is not equally distributed across the globe, leaving many individuals credit-starved and excluded from traditional lending systems. To address this issue, Finance for Humans believes in the power of open source credit scores and aims to kickstart networks that foster accountability, trust, and financial growth. By advocating for a more comprehensive credit scoring system and leveraging modern fintech technologies, the app empowers individuals to build stronger financial networks and level the playing field for all.

Open Source Credit Score: Creating a Level Playing Field

Finance for Humans advocates for an open source credit score that goes beyond traditional measurements of creditworthiness. Rather than relying solely on one's ability to earn and repay credit, the proposed scoring system incorporates factors such as assets, financial education, and a record of successful deals. It strives to create a more comprehensive evaluation process that provides a fair assessment of an individual's financial capacity and trustworthiness, regardless of their current credit status.

Widening the Credit Score Range: Facilitating Inclusivity

Most credit scoring systems follow a narrow range, leading to clustering of scores around a few numbers. Finance for Humans believes in widening this range to accurately reflect the diversity of individuals' financial journeys. By expanding the scale to potentially 2000 or 10,000 points, the scoring system can differentiate between various levels of creditworthiness, enabling individuals to showcase their financial integrity and reliability in a more nuanced and meaningful way.

Incorporating Assets and Trust Factors: Redefining Creditworthiness

To truly establish a level playing field, Finance for Humans recognizes the need to include the influence of assets and trust factors within the credit score. By acknowledging the impact of an individual's wealth and their ability to utilize financial resources, the scoring system aims to foster fairness and promote trust between lenders and borrowers. This inclusive approach acknowledges the importance of financial stability and the role it plays in a person's financial journey.

Internal Credit Score within the Finance for Humans App

Finance for Humans also introduces an internal credit score within its app ecosystem. This score is determined by an individual's completion of deals, adherence to commitments, and the knowledge gained from each transaction. Additionally, reliability scores, measured through verified assessments, contribute to the final credit score. By showcasing this score, users can demonstrate their track record of accountability and reliability, fostering greater trust within the Finance for Humans community.

Leveraging Fintech Technologies for Financial Inclusion

Finance for Humans stands at the intersection of fintech and financial inclusion. By leveraging modern technologies like AI and chat messaging platforms, the app enhances accessibility and convenience for users worldwide. The integration of familiar chat messaging interfaces, akin to WhatsApp, empowers individuals in developing nations, providing them with a seamless and user-friendly financial experience. This tech-driven approach paves the way for greater financial inclusion and empowerment.

Conclusion:

Finance for Humans advocates for an open source credit score that redefines creditworthiness and creates a level playing field for individuals at different stages of their financial journeys. By widening the credit score range, incorporating assets and trust factors, and promoting the use of modern fintech technologies, the app strives to foster financial inclusion and empower individuals to build stronger, more accountable networks. Through a comprehensive scoring system and a dedication to kickstarting small networks, Finance for Humans aims to reshape the way credit is evaluated, ultimately enabling individuals, regardless of their background, to achieve their financial goals and aspirations.