Seeing in 3D: Overcoming the Common Alternative Data Challenges
expertise 1 46%
of lenders lack internal alternative data
Almost half of lenders cite in-house knowledge as a key challenge to implementing an alternative data strategy. A solution that fast tracks your delivery is to engage with an experienced partner. This partner should offer a variety of alternative data capabilities to fill this internal knowledge gap. However, choose your partner wisely; be sure to find one with a proven track record of using alternative data in credit risk decisioning models. Working with a partner who complements your team’s strengths can significantly propel your results by filling the gaps in your 3D image. 64% of lenders not using alternative data cited developing or testing new models as a challenge 1 Effective deployment of risk models isn’t confined to alternative data. Many lenders struggle to develop, test, and deploy credit risk models. Some of the key challenges prohibiting easy model deployment include model recoding delays caused by technology that only supports certain languages, and slow data integration. A Rexer Data Science Survey found that only 13% of companies 5 “almost always” successfully deploy analytics models.
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