Terra Insight Enables Credit Assessment for the Gig Economy
For individuals working in the gig economy—such as freelancers, independent contractors, and self-employed workers—credit assessment presents unique challenges. Unlike traditional employees, gig workers often don’t have a stable, predictable income. Their earnings can fluctuate significantly from month to month, making it difficult for conventional credit scoring systems to accurately assess their financial stability.
Additionally, many gig workers and those in the informal economy may not have a long credit history, or they may rely heavily on alternative financial systems like UPI for transactions. This lack of traditional financial data can further complicate the assessment process, leading to higher risks or outright rejections from traditional lenders.
How Terra Insight Makes a Difference
Our advanced bank statement analytics is specifically designed to overcome these obstacles. Here’s how:
Adaptive Income Analysis
We use sophisticated machine learning algorithms to identify and analyse income patterns that aren’t immediately obvious. By considering factors like seasonal earnings, payment cycles, and even micro-transactions, our technology can provide a more accurate picture of a gig worker’s financial health.
Holistic Data Integration
Terra Insight’s technology looks at data from a variety of sources in the bank statements & credit reports like UPI transactions, cash transactions, other transfers and more. This allows us to create a comprehensive profile of an individual’s financial behaviour, even if they don’t fit the traditional mould.
Behavioural Insights
Our machine learning models, trained on over a million files, go beyond just analysing what’s in the data. They also identify what might be missing, such as irregular savings patterns or uncharacteristic spending spikes, which can be crucial for understanding the true financial situation of someone in the gig economy.
Lending Based on UPI Income
Terra Insight's advanced technology allows financial institutions to customise lending solutions by analysing an individual's unique UPI income profile. By meticulously examining UPI transaction patterns, our platform identifies consistent income streams, spending habits, and cash flow trends that may not be visible through traditional methods. This detailed analysis enables financial institutions to create tailor-made lending solutions that accurately reflect each individual's financial capacity, ensuring that even those with unconventional income sources can access the credit products best suited to their needs.
Fraud Detection Tailored for the Informal Economy
Gig workers and those in the informal sector might be more susceptible to practices like ‘window dressing’ or other manipulative behaviours that can distort financial data. Our proprietary fraud detection framework is specifically tuned to detect these subtleties, ensuring that financial institutions can trust the data they’re analysing.
Read more about how combining forensic screening along with robust data science models gives Terra Insight a unique advantage in sharing actionable insights that are missing from the rest of the industry.
Empowering Financial Inclusion
By optimising our technology to meet the borrowing needs of gig workers, freelancers, and others with irregular income, Terra Insight helps bridge the gap between these individuals and the financial products they need. Whether it’s micro-finance, small-ticket loans, or other financial services, our solutions are designed to ensure that everyone has access to fair and accurate credit assessment, regardless of their employment status.