If we look at Mexico , more than three quarters of the population does not have traditional financial products like credit cards. Additionally, in combination with it being the largest Hispanic speaking economy in LATAM, its strategic location makes the country a paradise for fintechs that are willing to look beyond the limited financial information available and search for alternative data. In conclusion, it comes down to the proper use of Machine Learning and common sense. Machine learning algorithms usually rely on black-box results, so, isolating one clear variable should not be the goal. With a big data approach, experimenting with set variables, ratings and timeframes will provide the insights that companies need to iterate and make credit scoring decisions.
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