What is BetterFi?
BetterFi is a non-profit, CDFI that offers affordable installment loans along with coaching to help individuals break free from debt traps and become financially stable.
Where does DataLab come in?
We worked with BetterFi to combat the predatory lending crisis in Tennessee by determining the most susceptible areas to predatory lending in Hamilton and Rutherford Counties.
The Dashboard
To maximaize their impact, BetterFi needs the means to uncover where the most vulnerable areas in Tennessee are. The BetterFi Interactive Dashboard provides several comprehensive tools for predicting vulnerability to predatory lending based on our selected population demographics. The dashboard provides three tools: Graphs for Model Variables, Interactive Maps, and the Customizable Model.
Interactive Graphs
The Interactive Graph portion of the dashboard allows the user to create custom graphs from the data used in the vulnerability model. Census tracts from a specific county can be selected, or all tracts from every county can also be displayed.
Interactive Maps
The Interactive Map portion of the dashboard allows the user to view heat maps of any variable included in the vulnerability model. A specific county or multiple counties can be selected, or a map containing all counties in Tennessee can be displayed.
Interactive Vulnerability Model
The Interactive Vulnerability Model portion of the dashboard allows for total customization of the methodology for creating and ranking vulnerability scores. The user may select which counties, variables, and variable weights to include in the model. Having selected all of these inputs, the model will produce an ordered list displaying census tracts ranked from most to least vunerable.
Variable Descriptions
Lenders within a 2.5 Mile Radius
is a variable that represents the number of predatory lending locations that are within 2.5 miles of each census tract. This information is crucial because it shows the density of the locations of all the predatory lenders.
"Total Population"
shows the total population of each census tract, and is necessary for calculating percentages for our variables.
"Average Income"
represents the average median household income for that census tract. This variable is relevant because lenders target low-income communities.
"Percentage Noncitizen"
represents percentage of population that is not a US Citizen in each census tract. The percentage of non-citizens is important because lenders tend to target minority communities and people who are not U.S. citizens.
"High School Graduation Rate"
represents the percentage of the population that are high school graduates in each census tract. We included high school graduation rate because predatory lenders tend to target individuals who are less educated.
"Percentage Of Veterans"
represents the percentage of the population that are veterans in each census tract. Veterans are a group that has been exploited by predatory lending firms and veterans sometimes struggle financially after serving in the military.
"Median Gross Rent"
represents the median gross rent in dollars for that census tract. Median gross rent is a relevant variable to look at because lenders are often located in communities where the rent is lower as those areas are usually associated with having lower incomes, and lenders target areas with lower income.
"Percentage Divorced"
represents the percentage of the population that is divorced in each census tract. Percentage Divorced is a necessary variable as individuals who are divorced tend to be targeted by lenders because they may be struggling financially with things like alimony payments, splitting rent, and child support.
"Unemployment Rate"
represents the unemployment rate in each census tract. Predatory Lenders target areas with a higher unemployment rate as individuals who are unemployed may be struggling to make ends meet. These individuals would be more likely to take out a bad loan in these situations.
"Percentage African American"
represents the percentage of the population that is African American in each census tract. Percentage of the population that is African-American is relevant because predatory lenders target minority communities and are often located in areas where a high percentage of the population is African-American.
"Percentage Hispanic/Latino"
represents the percentage of the population that is Hispanic or Latino in each census tract. The percentage of the population that is Hispanic/Latino is relevant because predatory lenders target minority communities and often hire individuals who speak Spanish to market to Hispanic/Latino individuals.
