In what ways can we improve Julo's credit scoring system to better assess borrower risk?

Introduction

To improve Julo's credit scoring system for better borrower risk assessment, we need to take a comprehensive approach that considers both technological advancements and user behavior patterns. I'll outline a strategy that addresses key pain points, leverages data analytics, and enhances the overall accuracy of our risk assessment model.

Step 1

Clarifying Questions (5 mins)

• Looking at the fintech landscape, I'm thinking Julo might be facing increased competition and regulatory scrutiny. Could you share insights on the current market position and any recent regulatory changes affecting our credit scoring practices?

Why it matters: Determines if we need to focus on competitive differentiation or compliance improvements. Expected answer: Moderate market position with recent regulations on data usage. Impact on approach: Would prioritize compliance-friendly innovations and unique value propositions.

• Considering the importance of data in credit scoring, I'm curious about our current data sources. Can you elaborate on the types of data we're currently using and any untapped sources we're considering?

Why it matters: Identifies potential areas for expanding our data inputs to improve accuracy. Expected answer: Traditional financial data with some alternative data sources. Impact on approach: Would explore integrating more alternative data sources and advanced analytics.

• Given the rapid advancements in AI and machine learning, I'm wondering about our current technology stack. Could you provide an overview of the AI/ML models we're using and their performance metrics?

Why it matters: Helps determine if we need to upgrade our technology or fine-tune existing models. Expected answer: Using some machine learning models with room for improvement. Impact on approach: Would focus on enhancing AI capabilities and model accuracy.

• Thinking about user experience, I'm curious about any friction points in the loan application process. Can you share insights on our current application completion rates and any common drop-off points?

Why it matters: Identifies areas where we might be losing potential borrowers due to UX issues. Expected answer: Moderate completion rates with drop-offs during document upload. Impact on approach: Would prioritize streamlining the application process alongside credit scoring improvements.