Inclusion of peer group and individual low-income earners in M-Shwari micro-credit lending: a hidden Markov model approach
The M-Shwari micro-credit lending system has excluded the low income earners as they lack good financial options due to volatile and fluctuating income. This paper proposes a decision support system for credit scoring and lending of the low income earners who are customers of M-Shwari using the hidd...
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| Format: | Article |
| Language: | English |
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International Journal of Electronic Finance
2019
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| Online Access: | https://repository.daystar.ac.ke/handle/123456789/2974 |
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| author | Ntwiga, Davis Bundi Ogutu, Carolyne Kirumbu, Michael Kiura |
| author_facet | Ntwiga, Davis Bundi Ogutu, Carolyne Kirumbu, Michael Kiura |
| author_sort | Ntwiga, Davis Bundi |
| collection | DSpace |
| description | The M-Shwari micro-credit lending system has excluded the low income earners as they lack good financial options due to volatile and fluctuating income. This paper proposes a decision support system for credit scoring and lending of the low income earners who are customers of M-Shwari using the hidden Markov model. The model emits the credit scores of the customers, both for the peer groups and the individual customers. The learning and training of the model utilises the customers' socio-demographics, telecommunication characteristics and account activities. The peer groups have higher credit scores and are more attractive to offer credit facilities using M-Shwari when compared to the individual borrowers. |
| format | Article |
| id | ir-123456789-2974 |
| institution | Daystar University |
| language | English |
| publishDate | 2019 |
| publisher | International Journal of Electronic Finance |
| record_format | dspace |
| spelling | ir-123456789-29742024-02-21T16:20:55Z Inclusion of peer group and individual low-income earners in M-Shwari micro-credit lending: a hidden Markov model approach Ntwiga, Davis Bundi Ogutu, Carolyne Kirumbu, Michael Kiura Peer group Low-income earners M-Shwari Hidden Markov model The M-Shwari micro-credit lending system has excluded the low income earners as they lack good financial options due to volatile and fluctuating income. This paper proposes a decision support system for credit scoring and lending of the low income earners who are customers of M-Shwari using the hidden Markov model. The model emits the credit scores of the customers, both for the peer groups and the individual customers. The learning and training of the model utilises the customers' socio-demographics, telecommunication characteristics and account activities. The peer groups have higher credit scores and are more attractive to offer credit facilities using M-Shwari when compared to the individual borrowers. 2019-09-17T08:31:25Z 2019-09-17T08:31:25Z 2018-04-10 Article Ntwiga, D., Ogutu, C. and Kirumbu, M. (2018). Inclusion of peer group and individual low-income earners in M-Shwari micro-credit lending: a hidden Markov model approach. International Journal of Electronic Finance, 9(2): 121-133 https://repository.daystar.ac.ke/handle/123456789/2974 en application/pdf International Journal of Electronic Finance |
| spellingShingle | Peer group Low-income earners M-Shwari Hidden Markov model Ntwiga, Davis Bundi Ogutu, Carolyne Kirumbu, Michael Kiura Inclusion of peer group and individual low-income earners in M-Shwari micro-credit lending: a hidden Markov model approach |
| title | Inclusion of peer group and individual low-income earners in M-Shwari micro-credit lending: a hidden Markov model approach |
| title_full | Inclusion of peer group and individual low-income earners in M-Shwari micro-credit lending: a hidden Markov model approach |
| title_fullStr | Inclusion of peer group and individual low-income earners in M-Shwari micro-credit lending: a hidden Markov model approach |
| title_full_unstemmed | Inclusion of peer group and individual low-income earners in M-Shwari micro-credit lending: a hidden Markov model approach |
| title_short | Inclusion of peer group and individual low-income earners in M-Shwari micro-credit lending: a hidden Markov model approach |
| title_sort | inclusion of peer group and individual low-income earners in m-shwari micro-credit lending: a hidden markov model approach |
| topic | Peer group Low-income earners M-Shwari Hidden Markov model |
| url | https://repository.daystar.ac.ke/handle/123456789/2974 |
| work_keys_str_mv | AT ntwigadavisbundi inclusionofpeergroupandindividuallowincomeearnersinmshwarimicrocreditlendingahiddenmarkovmodelapproach AT ogutucarolyne inclusionofpeergroupandindividuallowincomeearnersinmshwarimicrocreditlendingahiddenmarkovmodelapproach AT kirumbumichaelkiura inclusionofpeergroupandindividuallowincomeearnersinmshwarimicrocreditlendingahiddenmarkovmodelapproach |