FinRegLab in the News
‘Out of the Shadows’: Use of Alternative Data in Lending Gains Ground
www.americanbanker.com
“Regulators are trying to send an important signal that they are aware that there are certain data that can be quite useful, especially in assessing credit risk for an underserved population.”
FinRegLab in the News
Use of Alternative Data in Underwriting Receives ‘OK’ from Federal Regulators
www.jdsupra.com
“U.S. federal banking regulators issued an interagency statement supporting the evaluation of alternative data when assessing consumers’ creditworthiness.
FinRegLab in the News
Social Credit: Much More Than Your Traditional Financial Credit Score Data
www.forbes.com
“A shift in people’s creditworthiness ranking has been happening all over the world. We need to make sure the change’s innovative impact is a financially inclusive and anti-discriminatory one.”
“Using Income and spending data can open up access to credit, a September FinRegLab study indicated. The study analyzed information from FinTechs like LendUp Global and Petal Card that extend loans based on alternative data.
U.S. regulatory agencies recognize alternative data – and in particular cash flow data – can expand access to credit and produce benefits for consumers
“Consumers with spotty or no credit histories might find it easier to get loans after federal banking regulators endorsed alternatives to traditional methods of assessing creditworthiness.
“Does the financial sector stay distinct? Does financial data stay distinct? If so, how does that happen when all this line-blurring is going on? I’m not exactly sure how it will play out. But I strongly suggest that’s going to be the central question over the next five years…
“One hundred definitions” of fairness can make algorithms difficult “onions to unpeel.”
“When a diverse coalition, including big banks and a civil rights group, this summer called for speedier deployment of cash-flow data to widen Americans’ access to credit, it was a little-known startup research organization that brought them together.”
“Through Alternative lenders like LendingClub, Kabbage, and Upstart, and auto lenders like Ford Motor Credit use artificial intelligence every day in loan decisions…”