Over the years, an individual’s or even an organization’s creditworthiness is defined by their credit score. A borrower’s traditional data (e.g. credit history, credit utilization, etc.) is usually the only factor considered by credit scoring systems to evaluate their creditworthiness. The problem with this system is that a significant part of the population has an insufficient or non-existent credit history – making them credit-invisible. Alternative data
So, how can lenders tackle the situation of rejecting the application of more than 40% of their borrowers who are credit-invisible?
Solution is : Connecting to the right alternative data
To provide credit access to a wider audience and achieve financial inclusion, lenders must consider a different approach to confirm a borrower’s creditworthiness. This is where ALTERNATIVE DATA comes in.
Check out our Whitepaper to know more about how external data can revive lending business.
Over the years, an individual’s or even an organization’s creditworthiness is defined by their credit score. A borrower’s traditional data (e.g. credit history, credit utilization, etc.) is usually the only factor considered by credit scoring systems to evaluate their creditworthiness. The problem with this system is that a significant part of the population has an insufficient or non-existent credit history – making them credit-invisible. Alternative data So, how can lenders tackle the situation of rejecting the application of more than 40% of their borrowers who are credit-invisible?
Solution is : Connecting to the right alternative data
To provide credit access to a wider audience and achieve financial inclusion, lenders must consider a different approach to confirm a borrower’s creditworthiness. This is where ALTERNATIVE DATA comes in.
Check out our Whitepaper to know more about how external data can revive lending business.
