In the world of microfinance, a vast majority of potential clients lack a formal credit history or tangible collateral, which are the cornerstones of traditional credit scoring. This creates a significant barrier to financial access for millions of micro-entrepreneurs and low-income individuals who are often hardworking and reliable but remain "unscorable" by conventional metrics. Psychometric credit assessment tools offer a revolutionary solution, using behavioral data and personality traits to evaluate an applicant's creditworthiness. By analyzing factors such as honesty, discipline, and perseverance through a series of questions, these tools provide a more inclusive and accurate way to assess risk, allowing financial institutions to safely lend to a market segment that has historically been excluded.

This course is designed to provide a comprehensive and practical guide to understanding, implementing, and leveraging psychometric credit assessment tools. You will learn the scientific principles behind these innovative tools, explore the technology that powers them, and understand the strategic and operational considerations required for successful adoption. By mastering this cutting-edge approach, you will be prepared to unlock new market opportunities, improve portfolio quality, and expand financial inclusion in a way that is both responsible and sustainable, ultimately transforming the lives of countless individuals and communities.

Duration: 5 days

Target Audience:

• Microfinance institution (MFI) managers and executives
• Product managers and innovators in financial services
• Credit analysts and risk management professionals
• Professionals in charge of digital transformation
• Social entrepreneurs and startup founders
• Financial inclusion and development practitioners
• Data scientists and analysts
• Researchers in behavioral economics
• Regulatory and policy advisors

Objectives:

• Master the core concepts and principles of psychometric credit assessment.
• Understand the strategic business case for using psychometric tools.
• Learn how to select and implement the right psychometric tool.
• Grasp the complexities of a psychometric credit scoring model.
• Explore the role of data and technology in the assessment process.
• Understand the importance of a well-defined legal and ethical framework.
• Learn how to measure the impact on loan portfolio quality.
• Understand the importance of a client-centric design.
• Analyze successful case studies from different regions.
• Develop a strategic roadmap for implementing a psychometric solution.

Module 1: The Psychometric Paradigm

• The limitations of traditional credit scoring
• What is psychometric credit assessment
• The psychological principles behind the assessment
• The strategic shift to a character-based approach
• The benefits for MFIs and their clients

Module 2: The Science of Psychometrics

• The theory of personality and its link to financial behavior
• The importance of a reliable and valid tool
• The role of a well-designed questionnaire
• The scientific principles behind the assessment
• The difference between a psychometric and a traditional score

Module 3: Product Design and Development

• Designing a psychometric credit assessment tool
• The importance of a user-friendly and intuitive interface
• The role of gamification and interactive elements
• The importance of a clear and transparent process
• The link between product design and client adoption

Module 4: Data and Technology

• The technology stack for a psychometric assessment tool
• The importance of a secure and scalable platform
• The role of AI and machine learning in the scoring model
• The use of data analytics for portfolio monitoring
• The importance of data privacy and protection

Module 5: Credit Scoring and Decisioning

• The process of a psychometric credit assessment
• The role of a psychometric score in a lending decision
• The importance of a a tiered and risk-based lending model
• The link between a psychometric score and a loan size
• The importance of a clear and well-defined policy

Module 6: Risk Management and Oversight

• The main risks of using a psychometric tool
• The importance of a well-defined risk management framework
• The role of a dedicated risk management team
• Strategies for managing portfolio risk
• The importance of a robust internal control system

Module 7: The Client Perspective

• Understanding the client's perception and trust in a new model
• The importance of a clear and transparent communication policy
• The role of a client education program
• The importance of a a well-defined complaint resolution mechanism
• The link between a psychometric tool and a client-centric culture

Module 8: The Legal and Ethical Framework

• The legal framework for a psychometric credit assessment
• The importance of a well-defined code of ethics
• The role of a clear and transparent data privacy policy
• The legal and ethical considerations of using a psychometric tool
• The importance of a regulatory sandbox for innovation

Module 9: The Partnership Ecosystem

• The importance of partnerships with fintech and regtech companies
• The role of a well-defined business development team
• The importance of a network of trust and collaboration
• The role of a pilot program
• The importance of a regular review process

Module 10: Scaling and Sustainability

• The challenges and opportunities of scaling a psychometric program
• Measuring the return on investment (ROI)
• The long-term financial sustainability of the approach
• The future of financial inclusion with psychometric tools
• New trends and innovations in the sector

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.