Description
zypl.score is an AI-based credit scoring software developed by zypl.ai that enables financial institutions to automate their decision-making processes related to micro-loans. It reduces the average time taken for a micro-loan decision to 10 minutes.
Technology
The zypl.score solution has been developed based on a machine learning approach applied to a database of 1 million microloans issued over 10 years. Before launching their AI-based scoring system, the zypl.ai technical team carried out backtesting to compare the zypl.score results with those of the systems applied by different national banks. zypl.score subsequently achieved a 19 percent reduction in delinquencies, a threefold reduction in microloan operating costs and a twofold increase in microloan incomes.
Target
The zypl.ai scoring system has been launched nationwide in Tajikistan, where it has been deployed by Spitamen Bank, FINCA, Dushanbe City Bank and IMON INTERNATIONAL, among other financial institutions. As of April 2022, microcredits have been provided to more than 6000 customers armed only with their passports, with no other documentation required. Most of the loan recipients are first-time visitors to banks with no credit history, and their loan applications are dealt with instantly by zypl.ai’s AI software after entering their basic data. zypl.score is in active use in the Central Asian region by Asia Alliance Bank in Uzbekistan and Swiss Capital in Kazakhstan, among others.
Business model
zypl.ai assigns an AI-based credit score to each loan applicant. The unit cost depends on the number of annual requests.
Impact
zypl.score allows financial institutions to automatically review loan applications with high accuracy and speed using machine learning algorithms. Banks and microfinance organizations are thus able to provide more loans with a lower percentage of delinquencies. zypl.score increases the speed at which microloans can be underwritten, accurately predicts the creditworthiness of potential lenders and reduces the rates of non-performing microloans. zypl.ai has built on the experience gained in the Tajik market to successfully deploy their scoring algorithms in the markets of Kazakhstan and Uzbekistan.
Four Betters
Better life
