Definition #
Models evaluating creditworthiness through non-traditional data.
Key Characteristics #
- Cash flow analysis
- Social media
- Rental payment
- Education
Why It Matters #
Expands credit access to 70M “thin file” consumers (FICO).
Common Use Cases #
- Subprime lending
- SME loans
- Microfinance
Examples #
- Upstart
- ZestFinance
- CreditVidya
FAQs #
Q: Regulatory approval?
A: Compliant with ECOA and FCRA.
Q: Explainability?
A: Provides adverse action reasons.