Volume VI Special Issue IV April 2026

Name of Author : Dr. Sruthimol K.S

Title of the paper : AI Driven Credit Scoring and Financial Inclusion: Evidence from Emerging Economies

Abstract: Financial exclusion remains a major challenge in emerging economies, where a large segment of the population lacks formal credit history and access to institutional finance. Traditional credit scoring models rely on collateral and past banking records, often excluding informal sector workers and first time borrowers. AI driven credit scoring systems, using machine learning algorithms and alternative data such as digital payments, mobile usage, and utility transactions, offer a more inclusive approach to assessing creditworthiness. This study examines the role of AI based credit evaluation in expanding financial access among unbanked and underbanked populations. It also highlights potential risks, including algorithmic bias and data privacy concerns. The research aims to contribute to the development of responsible and inclusive AI driven financial systems in emerging economies.

Keywords : Artificial Intelligence, Credit Scoring, Financial Inclusion, FinTech, Alternative Data, Emerging Economies

DOI :

Page Number : 31-35