Data Science Non-Profit of the Week: Bayes Impact

Hi Everyone

My Data Science related Non-profit of the this week is a non-profit organisation called Bayes Impact - related to the statistical inference methods named after Thomas Bayes. For more information on Bayesian Analysis, see The International Society for Bayesian Analysis

Bayes Impact is an NGO set up with the goal of using data science to to improve the lives of millions at a scale that is possible only through algorithms.

One interesting project that caught my eye on their site was some work they did with Zidisha, a microfinance organisation, that makes small business loans to people in developing countries who often lack  bank accounts and, even if they could get loans, would be charged very high rates of interest by traditional lenders.

Bayes Impact worked with Zidisha to develop a model that could predict whether a borrower was a good risk based on borrow application history and behaviour. As Zidisha is not a traditional loan company, but one that specializes in poorer borrowers, it has to find a balance between giving out as many loans as it can, but also reducing fraud.