EDRAF

EDRAF supports financial inclusivity by providing access to credit for under-represented communities.

EDRAF - the Ethnographically Driven Risk Analysis Framework - uses ethnographic knowledge and anthropological insights from the Department of Anthropology to create reliable credit ratings and risk assessments for borrowers without credit history and who have typically been excluded from formal finance.

Rather than relying solely on financial data, EDRAF includes socio-cultural insights, such as family structures, informal lending practices, and local economic dynamics, to build a more accurate picture of risk. 

Pilot studies in rural South Asia have shown the tool is 100% accurate in selecting creditworthy borrowers who lack collateral. These borrowers, often from marginalised communities, were able to access loans and business opportunities, reducing their reliance on predatory loan sharks or fintech apps. 

It was developed by Professor Lucia Michelutti from UCL Anthropology, alongside Dr. Barbara Verardo.

UCL Ventures' role in EDRAF’s journey 

UCL Ventures has played a pivotal role in EDRAF’s development and success. As part of its Social Ventures programme, we provided business development support, helping EDRAF refine its model and prepare for scale. 

 “At UCL Ventures, we’re proud to have supported EDRAF’s journey from concept to pilot, providing business development, funding, and strategic guidance. Our Social Ventures programme exists to help ventures like EDRAF scale their solutions and deliver measurable social benefit, demonstrating that innovation and inclusion can go hand in hand,” says Ana Lemmo Charnalia, Senior Business Manager. 

EDRAF gained access to funding, including entry into the ARC Accelerate programme via the SHAPE Catalyst, which awarded EDRAF £62,500 to further develop its app and validate its impact. It was also included in the London Social Ventures initiative (led by UCL Ventures and Queen Mary University of London), a city-wide programme supporting university-led social ventures with funding, networks, and incubation support. 

Financial inclusion is more than just access to a bank account, it’s about economic empowerment. EDRAF’s work is a powerful example of how academic research, backed by strategic commercialisation, can drive societal impact.