quickly, which many small businesses desperately require. Some SMEs even choose to forego the traditional credit process altogether. But alternative data can help overcome these barriers and help entrepreneurs gain access to credit by creating a more accurate, complete profile with a faster turnaround.
In a TransUnion study 1 of lenders and credit providers using alternative data, it was found that:
By using alternative data, these lenders are creating a more robust picture of creditworthiness for a broader group of consumers. In fact, 71% of respondents agreed that alternative data provides them a more complete view of consumer credit risk. 2. No second guessing Improve your accuracy and increase your confidence in your credit pricing. Alternative data can remove doubts, which previously led to disqualifying customers or potentially overpricing an offer to hedge for unknown risks. Alternative data creates new opportunities for lenders by expanding your customer base, but it’s also a chance to improve your understanding of current ones or no-file consumers 87% 64% improve risk assessment among unbanked consumers by using alternative data 67% evaluate non-prime consumers through alternative data use alternative data to evaluate thin-file
Made with FlippingBook Digital Publishing Software