5 Reasons to anticipate Lucred in 2023

As we enter the new year of 2023, it is important to stay up-to-date on the latest payment solutions that can help individuals and businesses make purchases more affordably and conveniently. One payment solution that is worth keeping an eye on is Lucred, it offers a credit scoring models that are evolving to include alternative data sources like social media behavior, online transactions, and even mobile phone usage. The shift is helping to expand credit access to individuals and businesses that may not have a traditional credit history but demonstrate financial responsibility in other ways. For instance, fintech companies are utilizing machine learning algorithms to predict a borrower’s creditworthiness more accurately, reducing the reliance on outdated models. These innovations are particularly impactful in emerging markets, where large populations remain unbanked or underbanked. By integrating alternative data, digital lenders are breaking down barriers to credit and offering more personalized, fair, and accessible lending solutions. However, this also raises questions about data privacy, the ethics of algorithmic decision-making, and how regulators can keep up with these rapid advancements. In this blog, we delve into how credit scoring models are evolving and what it means for both borrowers and lenders in this new digital age.