Alternative Credit Data

From Open Risk Manual

Definition

Alternative Credit Data are new sources of credit relevant information that has become possible with increased digitalization of the economy. They complement traditional Credit Data that have been used in the primarily paper based financial systems and e.g. Credit Bureau Scoring data

List of Alternative Credit Data

The following table enumerates various source of alternative data as they currently develop, with an emphasis in SME Lending[1]

Data Source Type Description / Examples
E-Commerce Sales and Purchasing Data Online B2B and Commerce Data
Supply Chain Digitized Document Data Online B2B and Commerce Data
Logistics and Shipping Data Online B2B and Commerce Data
Performance Data of SME Business customers Online B2B and Commerce Data
Loan and Credit Card Data Banking, Finance, and Industry Data
Current Account/Transactional Account Data Banking, Finance, and Industry Data
Investment Account Data Banking, Finance, and Industry Data
Insurance Data Banking, Finance, and Industry Data
Online Accounting Data Banking, Finance, and Industry Data
Online SME Billing and Payment Data Banking, Finance, and Industry Data
Merchant POS and Sales Data Banking, Finance, and Industry Data
SME Business Intelligence & Marketing Data Banking, Finance, and Industry Data
Inventory Tracking Data Banking, Finance, and Industry Data
Economic and Industry Data Banking, Finance, and Industry Data
Social Media Data Online Ranking and Social Data
Search History Online Ranking and Social Data
Website History Online Ranking and Social Data
Online Rankings and Reviews Online Ranking and Social Data
Mobile Call Pattern Data Mobile Data
Mobile Business and Expense Data Mobile Data
Mobile Recharge History Mobile Data
Mobile E-Money Transactions Mobile Data
Smartphone Mobile App Analysis Mobile Data
Mobile Geo-Locational Data Mobile Data
Psychometric testing Individual Data

Issues and Challenges

  • Many alternative data sources are unproven in terms of long term usefulness
  • Significant data privacy issues associated with some sources



References

  1. Alternative Data Transforming SME Finance, International Finance Corporation, 2017

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