"...devised a psychometric test to help banks in emerging markets easily screen loan applicants. The goal is to spur lending to small and midsize companies, a vital sector often underfunded in the developing world. These companies are too big to rely on microfinance, yet not big enough to be served efficiently by the banks. "There are millions of businesses in developing countries that could earn significant returns on additional capital that aren't financed," says Bailey Klinger, EFL's director. "And it's not that banks aren't interested in them. Quite the opposite. They just don't have the right tools." The 40-minute computer-based test assesses traits like honesty, ethics, intelligence, and motivation."South Africa's expansive Standard Bank is the first commercial scale-up customer and our MIT Development Ventures alum-student DJ DiDonna is spearheading the effort!
16 July 2010
Psychometric Credit Scores ~ Harvard's EFL...
Very interesting to read in in Bloomberg Businessweek A Test to Identify Entrepreneurs by Caroline Winter about the workings of Harvard's Entrepreneurial Finance Lab (EFL) at the Kennedy School's Center for International Development. They have...
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