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.
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