Credit Scoring, FinTech, and Consumer Loans: Why AI Scoring Models Do Not Replace the FICO Score

The FICO® Score provides a comprehensive view of credit risk derived from data reported by lenders to credit reporting agencies with the utility in underwriting, the credit cycle, and portfolio valuations like asset-backed securitizations. Some fintechs built scoring models with unproven alternative elements, which may carry increased loan risk. There are more responsible ways to leverage alternative data to improve credit access while minimizing credit risk.