The power to borrow and lend: investigating the cultural context as part of the lending decision

This article addresses social contextual aspects of the lending decision no t as irrational dimensions to be improved upon, but as important informatio n that adds value to the rational decision-making process. It advocates a b roader conceptualization of behavioural finance and the adoption of behavio ural science theory and methods into credit scoring research. The article i llustrates the use of behavioural sciences by presenting the results of an experimental study on the role of financial and social-cultural information on the lending decision process of experienced lenders in the United State s. The study found that social-cultural information influenced the decision process in patterned and predictable ways. A future research agenda is out lined, and implications for credit scoring research and practice are discus sed.