Credit Risk Assessment of POS-Loans in the Big Data Era

Credit risk assessment plays an essential role in bank loan processes. It is difficult for small and micro enterprises (SMEs) to apply for a loan because of the lack of collateral and low credit ratings. In the absence of a guaranty, enterprises can get loans based on the business and operational data from POS machine records. In this position paper, we propose to use POS-loans to address this problem. This paper defines the concept of POS-loans, proposes a credit scoring framework, and discusses the potential influence of POS-loans on bank management.