THE USE OF ALTERNATIVE DATA IN CREDIT RISK DECISIONS FOR THE UNDERBANKED – VOTERS CHOICE FOR EMBRACE INCLUSION

Alternative Data emerged in the late 1990s as a means to open up access to credit to underserved consumers. Today, alternative data is used in millions of credit decisions; however its use is not well understood outside the lending industry.

We will review the various types of data used in credit risk assessments including traditional credit reports and modern alternative data sources. We will discuss how alternative data relates to the compass principles of “embrace inclusion” and “create opportunity.” We will ask attendees for their opinions on the types of data currently being used in the industry, and their ideas for other data that could/should be used to help underbanked consumers gain access to credit.