All posts by Manish Gandhi

Analytics & Optimization Using Alternative Data in Credit Risk Modelling

Aug292017

“Whenever I bring up the topic of alternative data, the first question our board asks is, ‘Are we using Facebook data?’ “ This comment from a participant in our recent EMEA Risk Leadership Forum caused a lot of chuckles and nodding heads. When it comes to evaluating credit risk, everyone wants to know if, when and how lenders will start probing their Facebook account. For reasons that will be obvious to lenders, that tantalizing possibility doesn’t actually top the list of data sources to mine. In fact, at the forum we explored a few sources of data that can add to the picture of a consumer’s creditworthiness. Multiple Types of Alternative Data What is alternative data? In credit granting, it generally refers to any data that is not directly related to a consumer’s credit behavior. Traditional data usually means data from a credit bureau, a credit application or a lender’s... [Read More]

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