What are the implications of using non-traditional data for credit decisions?

Profit scoring systems, such as the one proposed in the paper, can help lenders to decide their fund allocation. Lenders may select loans to maximize the ... Mar 19, 2024 ... ... credit score and most recent tax returns and bank statements,” wrote Funding Circle. However, alternative lenders provide small loans with ... Feb 10, 2022 ... Alternative data promise to expand access to loans for the more than one in seven adult Americans who lack an established credit score, Chopra ... Jan 20, 2021 ... An alternative form of credit scoring is being used successfully in emerging markets, as data on consumer consumption is rich because ... Feb 12, 2025 ... Discover how alternative data enhances credit scoring, helping lenders to better assess creditworthiness and predict defaults. Dec 19, 2023 ... Alternative credit scoring is a paradigm shift from traditional methods. It broadens the scope by incorporating diverse data sources beyond income and credit ... Aug 8, 2024 ... Alternative credit data refers to nontraditional data that lenders use to assess a borrower's creditworthiness, especially when there is limited ... Oct 16, 2023 ... Including this alternative data into scoring models will expand homeownership opportunities for creditworthy borrowers and make scores more ... In 2017, the Consumer Financial Protection. Bureau (CFPB), issued the request for. “Information Regarding Use of Alternative Data and Modeling Techniques in ... May 21, 2024 ... This study explores the potential of utilizing alternative data sources to enhance the accuracy of credit scoring models.