Q.

Could MYbank’s bigdata and algorithmic approach identify good credit risk
for small loans without incurring the expense of multiple loan officers and
brick and mortar branches?

• Yes, it is possible and bigdata and algorithmic approach would be sufficient to

check credit risk
• In the longer run, the big data and algorithmic approach would be highly
effective and accurate
• However, in the shorter run not enough data is there for Big data and to create
algorithms
 Was the rural customer base for online banking robust enough to create a
profitable programme at scale.

• Yes, almost 44 percent of population is living in Rural area

• Yes, it’s possible considering China’s economy and literacy rate 96.4 percent
• The world is moving towards digital age and China is very aggressive on this
• Ease of usage of application has improved a lot in past a few years
 What did Mybank have to do to make a national credit-rating system for small
enterprise.

• Check credit worthiness through five C model

• Through Earn media we can impact on the large scale.
• Big Data and algorithmic would also be very helpful in the long run
 Conclusion:

• Mybank’s farmer loan program can be successful with good credit rating
system.
• Periodical supervision should be there to reduce the default rate.
• Big data and algorithmic approach would be useful but for the initial period
of time we would recommend it should be coupled up with multiple loan
officers and bricks and mortar branch.