Originally developed at the Harvard Center for International Development to address information asymmetry in 2006, Entrepreneurial Finance Lab (EFL) offers psychometric evaluation for credit borrowers lacking a traditional credit score. They operate in emerging markets in Africa and Asia and partnered with FICO to provide services in Russia, Turkey and Mexico.
EFL provides creditors with a psychometric evaluation of those seeking loans without a credit history. The test asks questions which do not necessarily have right answers. The assessment seeks to evaluate personal initiative, situational judgement, creativity and business acumen.
Standard Bank adopted EFL's model in 2008 and by 2013 had used it to lend more than $200 million to entrepreneurs who would have otherwise not qualified for a loan. The average loan amounts were $7,500, according to Standard Bank.
In October of 2017, EFL announced a merger with Lenddo. Lenddo provided a similar credit rating system, by which lenders could assess applicants without an established credit rating through their social media. LenddoELF combined their services for financial institutions.