what metrics would you use to evaluate kredivo's credit scoring algorithm?

Introduction

Evaluating Kredivo's credit scoring algorithm is crucial for assessing the effectiveness of their lending decisions. To approach this product success metrics problem effectively, I'll follow a structured framework covering core metrics, supporting indicators, and risk factors while considering all key stakeholders.

Step 1

Product Context

Kredivo is a digital credit platform operating in Southeast Asia, primarily Indonesia. Their credit scoring algorithm is a core component of their business, determining which customers receive credit and at what terms.

Key stakeholders:

• Borrowers: Seeking quick, accessible credit
• Lenders/Investors: Expecting returns with managed risk
• Regulators: Ensuring fair lending practices and financial stability
• Kredivo: Balancing growth, risk, and profitability

User flow:

1. Application: Users provide personal and financial information
2. Credit assessment: Algorithm analyzes data to determine creditworthiness
3. Offer: Terms are presented based on the credit score
4. Acceptance and disbursement: User accepts terms, funds are disbursed
5. Repayment: User repays according to agreed terms

Kredivo's algorithm fits into their broader strategy of expanding financial inclusion while managing risk. Compared to traditional banks, Kredivo's approach is more agile and data-driven, potentially reaching underserved segments.

Product Lifecycle Stage: Growth - The algorithm is established but continually evolving as more data is gathered and market conditions change.