TELIA: A TELCO STORY Swedish telco Telia, for example, recently adopted Provenir’s credit risk analytics and decisioning platform, enabling the company to conduct straight-through processing for its FTTH loan applicants. Among other benefits associated with reducing credit risk, Provenir’s platform enables Telia’s credit managers to integrate structured and unstructured data sources, and deliver decisions in seconds and even milliseconds. Bart Baesens, professor of Big Data and analytics at the University of Leuven in Belgium, pointed out as volume, variety, and velocity of data continue to grow—along with a decline in issues regarding accuracy—new opportunities for building better credit scoring models also increase. He added: “By using alternative data sources, a better assessment of the credit risk can be made.”
“Provenir empowers the Telia Finance team to create and change credit offerings independently, process customer applications in seconds, and easily integrate into multiple data sources for better quality decisioning.” - FREDRIK NI LSSON, TEL IA F INANCE
DATA AND ANALYTICS USE CASES Alternative Data Expands the Population
The US Consumer Financial Protection Bureau (CFPB) also believes the use of alternative data may help expand lending opportunities to consumers who lack sufficient history with a nationwide consumer reporting agency to obtain a credit score. According to the CFPB, an estimated 26 million Americans are so-called ‘credit invisible’, and another 19 million consumers have a credit history that has gone stale, or is insufficient to produce a credit score under most scoring models. The CFPB said for some consumers, “the use of unconventional sources of information, called ‘alternative data’, may be a way to gain access to credit to build a credit history. “Alternative data draws from sources such as bill payments for mobile phones and rent, and electronic transactions such as deposits, withdrawals or transfers. This information could show a track record of meeting obligations that may not turn up in a credit history. As a result, some who now cannot get reasonably priced credit may see more access or lower borrowing costs.”
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