NEXT Bank, Chunghwa Telecom Use Telecom Data to Support Credit Assessments

NEXT Bank and Chunghwa Telecom are incorporating customers’ telecom bill-payment records into consumer-loan credit assessments, helping fill the data gap for people with little or no credit history from credit cards, loans or other traditional financial services. Consistent payments can give the bank a new indicator of repayment capacity and default risk, broadening access to inclusive financial services.

The latest program targets Chunghwa Telecom customers. With applicants’ authorization, their telecom payment records can be used to assess online loan applications. Automated review and disbursement could provide funds as soon as the day of application. As of the report’s publication, the companies had not announced a formal launch date, loan limits, interest rates or the number of approved applications.