Solving a $2.5 Trillion Problem: Can innovations in credit scoring give credit where it’s due? By DJ Didonna from EFL

Micro, small and medium-sized enterprises have a combined credit need of up to $2.5 trillion globally. The fact that this need persists is due to an intractable standoff between lenders desperate to capture this market, and borrowers unable to convey their creditworthiness in the antiquated ways demanded of them. But in our work in over 20 countries across 4 continents, we at the Entrepreneurial Finance Lab (EFL) have seen glimpses of innovation utilizing “non-traditional” data in these markets that signal a potential easing of the standoff.