New Alternative Data and Tech Tools Energize Consumer Lending: The Race Is On

By Steven Shaw on 4/5/2017

Lender-facing tools are challenging the post-recession “innovative IT void.” 

Boston, March 28, 2017 – In the early days of 2017, lending conditions in the U.S. show signs of improvement, and for U.S. financial institutions and lenders in particular, this is likely to free up resources and IT budgets to get back to the business of retail financing. That 75% of top lenders indicated in 2016 that they are using non-traditional data in the loan acquisition and/or approval process is evidence of the excitement in the market. And FIs as well as online lenders believe that alternative data sources, such as financial account and transaction data, add value to loan decisions.

This report, the second in a two-part series, turns attention to the discovery of emerging tools that enable FIs to analyze, design, and differentiate portfolio risk as well as financial performance and that are well-positioned to have a long-term retail finance impact. Profiling six vendors, eCredable, Equifax, Experian, FICO, RevolutionCredit, and TransUnion, it contains analysis from 33 ongoing, in-depth Aite Group discussions with and interviews of alternative lenders, solution vendors, and senior management at U.S. banks, credit unions, and finance companies that have substantial retail credit portfolios and significant risk management expertise. See the first report in this series here.

This 27-page Impact Note contains eight figures and five tables. Clients of Aite Group’s Retail Banking & Payments service can download this report, the corresponding charts, and the Executive Impact Deck.

 

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