Manila-based LF Lending Services is on the verge of digital transformation, starting with the integration of telco data into existing credit decisioning models.

Unique insights from telco data allow LF Lending to predict repayment behaviors with improved speed and accuracy. Telco data, as supplied by alternative data aggregator FinScore, serves as proof of creditworthiness for thin-file borrowers who may not have a bank account or credit history.

FinScore Country Manager Christo Georgiev champions telco data saying,

“It acts as a reliable basis for financial institutions to finally serve the underbanked credit market.”

He continues:

“Most people who seek LF Lending’s help are working parents who need quick cash for tuition, gadgets, and medical emergencies – and a majority of this segment is underbanked. Using a scoring model based on telco data empowers LF Lending to approve more loan applications from the ‘credit-invisible’ with reduced risk on their end.”

Despite the inconveniences of being a one-branch-only lender, LF Lending boasts of high customer retention rates. “They always come back,” confirms Paolo Lagcao, General Manager and Co-Founder of LF Lending Services.

“Our interest rates – not usurious, our application process – simple, and our customer service is honed to an art form. But traditional credit scoring disqualifies more than it is inclusive. We partnered with FinScore because its alternative Telco Credit Scoring delivers fair and unbiased insights for safe credit decisioning. We lose less as we help more people.”

LF Lending is a family-owned business, initially operated by Lagcao’s grandparents over 20 years ago. Now at the helm, Lagcao promises to usher in a new dawn for the company:

“There’s always room for improvement. As we boldly take our first steps towards digital transformation, we are glad to be walking down the path with FinScore.”