Page 220 - The Digital Financial Services (DFS) Ecosystem

ITU-T Focus Group Digital Financial Services
Ecosystem

Appendix 1: Glossary of terms

Term Definition

Microfinance Institution (MFI) A financial institution specializing in banking services for low-income groups
or individuals not normally supported by traditional banks.

Negative-only reporting Reporting of information such as delinquencies, defaults, collection, bank-
ruptcies, and liens. Indeterminate information such as credit applications
(but not approvals or rejections) may also be included.

Positive data Reporting of payment and credit information such as the timeliness of pay-
ments, credit utilization rates, credit limit, debt ratios, and account balance.
For small businesses, it also includes trade credit data and leasing
arrangements.

Shylocking To lend money at extortionate rates of interest. This term is a reference to a
relentless and revengeful moneylender in Shakespeare’s Merchant of Venice.

Social graphing A representation of the interconnection of relationships in an online social
network. Used in alternative credit data analysis to determine an individual’s
reputation and creditworthiness.
Social verification Use of social media and big data to check the veracity of information.

Trade credit Extension of credit by one trader to another for the purchase of goods and
services as a source of short-term financing.

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