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…”
“Every entrepreneur deserves a chance — and access to resources — but that’s not exactly how it works without some smart strategizing.”
FinRegLab in the News
Can Freddie Mac’s embrace of AI pull the industry along?
www.americanbanker.com
“Freddie Mac’s foray into artificial intelligence may be a significant turning point in broadening the use of the technology
“Melissa Koide, co-founder and CEO of FinRegLab, analyzed loan data from six lenders that use cash-flow data in their underwriting. She share what she found.
FinRegLab in the News
Podcast Cash-flow data shows promise as predictor of credit risk
www.americanbanker.com
“Melissa Koide, co-founder and CEO of FinRegLab, analyzed loan data from six lenders that use cash-flow data in their underwriting.”