Leveraging Big Data for Financial Inclusion: Opportunities and Risks - Microfinance Gateway previews EWW 2016
In advance of European Microfinance Week 16-18 November, The Microfinance Gateway talked with Philippe Bruel, PhB Development, moderator of the session 'Data driven microfinance: small bits, big data':
Big data is a powerful new resource in international development with the potential to transform every industry, from education and health to agriculture and biotechnology. This month, Philippe is moderating a plenary on Big Data-driven microfinance at the European Microfinance Week. The Microfinance Gateway caught up with him ahead of the event to get a preview of some of the topics that will be discussed around Big Data and its effects on the microfinance sector.
Question 1: Can you talk about the concept of "Big Data" in the financial inclusion context? What is it and how is it collected and used by microfinance institutions?
Traditionally, financial service providers have relied on small data, such as credit scoring, for decision-making. This type of data is easily accessed and interpreted by humans without the need for complex technology solutions and algorithms.
Due to the widespread use of smart mobile devices and the internet, the digital footprint of humans has increased dramatically in recent years, creating large amounts of electronic data referred to as Big Data. As the volume and the complexity of data increases, powerful computing tools and algorithms are needed to analyze and interpret it.
Read the full interview here