The role of credit reports in digital lending: a case study from Mexico

Abstract Digital credit that uses non-traditional scoring techniques has already expanded credit access to many new populations. A point of policy debate is whether digital lenders should be fully integrated into information-sharing systems, such as those offered by credit reference bureaus (CRBs). We study an example of a digital lender in Mexico adopting credit bureau scores into its screening process. Using unique administrative data, we estimate a regression discontinuity in time around the lender’s integration of credit bureau scores. We find that the acquisition of credit scores reduces defaults, with the likelihood of borrowers’ repayment increasing by 10–13 per cent.