Alt Data Aims to Shake up Credit Scoring Business

Young firms, using machine-learning methods to scrape consumer info, challenge established agency model.

Custom dictates that lenders rate an individual’s ability to repay a loan by checking their credit history. It’s a simple concept that has been the bedrock of consumer lending since the Fair Isaac Corporation—now Fico—designed the first credit scoring algorithms 50 years ago.

Now, a new generation of upstarts are trying to topple this convention. Two challengers, Credit Kudos and Aire, are developing ways of collecting and analyzing a wider range of data on consumers. They claim their methods

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The IMD Wrap: Will banks spend more on AI than on market data?

As spend on generative AI tools exceeds previous expectations, Max showcases one new tool harnessing AI to help risk and portfolio managers better understand data about their investments—while leaving them always in control of any resulting decisions.

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