The problem with data-driven decisions is that we dont always like the result. Credit scores are recently falling into that trap.
A Montana state legislator, who apparently disliked having a low score because of excessive inquiries, proposed a law that would restrict the use of inquiries in credit scoring. This reminds me of the Indiana bill of 1897 that would define Pi as 3.2, avoiding the annoyance of an irrational number. Math doesnt care about legislative fiat. It does, however, care about incomplete or misrepresentative data. That is why the evolving focus on alternative data really does matter for bankers.