Using psychometrics to quantify personality traits
The LenddoEFL assessment, part 1
At LenddoEFL, we collect various forms of alternative data to help lenders verify identities, analyze credit risk, and better understand an individual. One of our most important tools for financial inclusion is our psychometric assessment. While some people still lack a robust digital footprint, everyone has a psychological profile that can be characterized and used for alternative credit scoring.
In this series of posts, we shed light on the science behind the LenddoEFL psychometric assessment and how we’ve pioneered an approach to measure anyone’s creditworthiness.
Measuring how people answer questions with metadata
The LenddoEFL Assessment Part 2
The last post showed how our psychometric content reveals people’s personality traits, but our assessment also captures an abundance of metadata. Metadata is information about how people process the questions and exercises they complete. Here are some examples.
How long did an applicant take to answer a question compared to their average response time?
How many times did an applicant change their mind and switch their response before submitting their answer?
Is the applicant’s information consistent with their written request to the financial institution? (e.g., requested loan amount)
By measuring metadata, LenddoEFL’s approach goes beyond what is possible in traditional credit applications to reveal more information about applicants. Continue reading…