Alternative data

New Research Finds 90% of Lenders See Alternative Data as Key to Approve More Worthy Borrowers

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Tuesday, April 9, 2024

Data Analytics, Fintech, Professional Services, Finance, Karma, Consumer, Cash flow, Employment, GM, Alternative data, Capital One, Risk, Research, Risk assessment

With 75% of lenders expecting that the CFPB’s proposed 1033 “Personal Financial Data Right” rule will eliminate data sharing obstacles for consumers—streamlining the way lenders collect and consider alternative data points in their credit risk assessments—the opportunities for widespread adoption of alternative data within credit underwriting practices are immense.

Key Points:

With 75% of lenders expecting that the CFPB’s proposed 1033 “Personal Financial Data Right” rule will eliminate data sharing obstacles for consumers—streamlining the way lenders collect and consider alternative data points in their credit risk assessments—the opportunities for widespread adoption of alternative data within credit underwriting practices are immense.
However, only 43% of lenders currently supplement credit scores with alternative data in their risk assessments.
Despite promising results, barriers to alternative data adoption persist, including concerns about regulatory scrutiny, data reliability, and integration complexities.
To address this financial knowledge gap, many lenders are turning to alternative data sources to bolster their underwriting models.

FinRegLab Report Finds Non-Conventional Data Sources Are Critical to Expanding Credit Access and Growth Among Kenyan Micro and Small Enterprises

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Thursday, March 28, 2024

Gravity battery, Ecosystem, Research, Growth, Alternative data, Government, Bill, Policy

WASHINGTON, March 28, 2024 /PRNewswire/ -- A new report by FinRegLab details strategies for improving data sources for credit scoring and underwriting of Kenyan micro and small enterprises (MSEs), finding that tapping multiple non-conventional (or alternative) data sources is particularly important to expanding credit access and growth among women-owned MSEs.

Key Points:

WASHINGTON, March 28, 2024 /PRNewswire/ -- A new report by FinRegLab details strategies for improving data sources for credit scoring and underwriting of Kenyan micro and small enterprises (MSEs), finding that tapping multiple non-conventional (or alternative) data sources is particularly important to expanding credit access and growth among women-owned MSEs.
Women-owned MSEs are more likely to be small and unlicensed, and often can only access relatively high-cost, short-term credit that is not reported to credit reference bureaus.
"Better data for scoring and underwriting is critical to increasing access to affordable loans that could permit these businesses to grow, particularly for women-owned MSEs."
The report finds that credit access for Kenyan MSEs can be expanded substantially through a series of targeted initiatives, including aligning regulations to increase the consistency of reporting to credit reference bureaus, taking steps to facilitate access to non-conventional data sources, and clarifying data protection regulations and guidance.

Bloomberg Makes Alternative Data Accessible Alongside Traditional Financial Data

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Thursday, September 7, 2023

Alternative data, Foot, Acquisition, Bloomberg Terminal, Research, News, Privacy, Algorithm, Machine learning, Cryptocurrency, Bloomberg

NEW YORK, Sept. 7, 2023 /PRNewswire/ -- Bloomberg today announced the introduction of a new alternative data function, ALTD , on the Bloomberg Terminal. For the first time, customers can get an early read on company performance, side-by-side with the traditional fundamental data for which Bloomberg has long been known. ALTD supports equity analysts and portfolio managers with intra-quarter insights and can be easily incorporated into research workflows – alongside consensus estimates, company news, research, and guidance – well ahead of earnings announcements.

Key Points:

NEW YORK, Sept. 7, 2023 /PRNewswire/ -- Bloomberg today announced the introduction of a new alternative data function, ALTD , on the Bloomberg Terminal.
Through the Bloomberg Second Measure acquisition completed in 2020, Bloomberg began offering the highly sought-after consumer transaction data feed and analytics products.
"With ALTD , we are democratizing access to alternative data by seamlessly integrating it into the Bloomberg Terminal alongside traditional market data, broker research, estimates and news," said Shawn Edwards, Bloomberg's Chief Technology Officer.
Richard Lai, Global Head of Alternative Data in Bloomberg's Office of the CTO added, "Alternative data enables customers to gain faster, deeper insights into company performance.

Facteus Expands Strategic Partnership with Databricks by Making Data Available on Databricks Marketplace

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Thursday, June 22, 2023

Facteus , the industry leader in consumer credit and debit card transaction data in the Alternative Data industry, expands its strategic partnership with Databricks, the data and AI company, by making its data products available on the new Databricks Marketplace.

Key Points:

Facteus , the industry leader in consumer credit and debit card transaction data in the Alternative Data industry, expands its strategic partnership with Databricks, the data and AI company, by making its data products available on the new Databricks Marketplace.
"Incorporating Alternative Data into decision making and investment research is already a large commitment for our clients," said Jonathan Chin, Co-Founder, Head of Data & Growth Strategy at Facteus.
Databricks Marketplace aligns with Facteus' mission to democratize data insights, access, and analysis, where customers can seamlessly integrate Facteus data sets on any cloud.
Both Facteus and Databricks see a future where Alternative Data coupled with data science workflows become commonplace for any data driven enterprise.

Research Finds Majority of Lenders Now Use Alternative Data in their Underwriting Process

Retrieved on:

Monday, October 24, 2022

Traditional credit underwriting practices, which rely heavily on credit bureau reports, have unintentionally excluded millions of consumers from credit and financial services.

Key Points:

Traditional credit underwriting practices, which rely heavily on credit bureau reports, have unintentionally excluded millions of consumers from credit and financial services.
The majority of lenders surveyed have started considering cash flow data in the past two years, representing a shift in how they think about underwriting models and the benefits of consumer-permissioned data.
Lenders are using alternative data sources to create more opportunities for data-driven decisions, but additional opportunities exist: While 50% of lenders are using alternative data to improve the predictability of underwriting processes, not enough lenders are taking advantage of its ability to reach new audiencesa motivator in only 27% of lenders.
However, nearly 50% of lenders indicate reliability and/or stability of alternative data sources has been a top concern impacting alternative data adoption and 30% cite associated costs for such data and analytics as a top concern.

Using Rental Payment History in Mortgage Underwriting Is a Promising Strategy to Close the Black-White Homeownership Gap

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Monday, October 17, 2022

Adoption, SAN, Color, Insurance, Risk assessment, Urban Institute, Federal Home Loan Banks, Housing, Research, Alternative data, CEO, GLOBE, FICO, Solution, Documentation, Bank, Real estate, Black

SAN FRANCISCO and WASHINGTON, Oct. 17, 2022 (GLOBE NEWSWIRE) -- More Black renters could become homeowners if the housing finance industry more fully embraces the use of rental history and other alternative data in underwriting mortgages.

Key Points:

Reducing the Black-White Homeownership Gap through Underwriting Innovations: The Potential Impact of Alternative Data in Mortgage Underwriting reports that there is a 30-percentage point gap in homeownership between Black and white households in the United States.
But approximately 53 million people cannot be reliably scored under the scoring model most commonly used in mortgage underwriting, Classic FICO.
The most influential factors that determine mortgage access reflect a long history of racial discrimination by US public and private institutions.
Incorporating alternative data in underwriting is an important step forwardone of many neededin the effort to achieve racial equity and increase Black homeownership.

Txtsmarter, LLC Announces Closing of Funding Round and Appoints New Chief Executive Officer

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Friday, August 26, 2022

DBA, CEO, Technology, Market Watch, Investment, FCA, Compliance, Communication, Silicon, Series, WhatsApp, Growth, Alternative data, Mobile phone, Ecomm Merchant Solutions Champion Novice Hurdle

SANTA CLARA, Calif. and LONDON, Aug. 26, 2022 /PRNewswire/ -- txtsmarter, a secure pipeline for full communications capture across private messaging applications, platforms, and services, announced today the completion of its Series A funding round. Textsmarter LLC, which recently won two global regulatory awards for "Most Innovative Use of Alternative Data in Regulatory Compliance" and "Leading Innovators in Communications Data Leak Mitigation," will use the funds to expand its services in the US and European enterprise markets, to enable companies in highly regulated industries to respond to increasing oversight from regulatory agencies.

Key Points:

To guide the company in its new phase of growth, Edward Green, an experienced technology CEO and Founding Partner of Exigent Ventures,has been appointed the new CEO of Textsmarter LLC.
"This funding round has been paramount in growing our development team and providing additional features based on our future roadmap to expand our services in the enterprise market.
The funding round was led byCarolina Financial Group, a North Carolina investment bank and financial services company.
Textsmarter LLC, DBA: txtsmarter based in Silicon Valley, California, is an Award-Winning Compliance Communications Surveillance Service for private messaging applications, platforms, and services incl.

FISCALNOTE ANNOUNCES STRATEGIC PARTNERSHIP WITH SOUTH KOREA CONSUMER FINANCE LEADER SHINHAN CARD

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Thursday, August 25, 2022

WASHINGTON and SEOUL, South Korea, Aug. 25, 2022 /PRNewswire/ -- FiscalNote (NYSE: NOTE), a leading AI-driven enterprise SaaS company that delivers market intelligence and data insights, today announced a groundbreaking new partnership with Shinhan Card - Korea's largest credit card company and consumer finance leader - to leverage FiscalNote's alternative data, AI, and ESG Solutions offerings to provide customers with unique data sets to drive actionable results and power business decisions and outcomes.

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The agreement was announced by FiscalNote Chairman, CEO, and Co-founder, Tim Hwang, and Lim Young-Jin, CEO of Shinhan Card, at Shinhan Card's global headquarters in Seoul, Korea.
"We are very excited to partner with Korea's foremost credit card, consumer finance and technology leader in Shinhan Card.
"I am especially proud that FiscalNote's Korea-based offerings, Aicel Technologies and Datahunt, will be core components of the FiscalNote-Shinhan Card partnership moving forward."
To learn more about FiscalNote and its family of brands, visit FiscalNote.com and follow @FiscalNote.

Facteus' Pulse Product Continues to Raise the Bar Now Topping Rankings for Over 77 Consumer Companies' KPIs in Predictive Accuracy

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Thursday, August 4, 2022

Professional Services, Marketing, Data Management, Communications, Data Analytics, Technology, Software, Century, Research, IDEA, Alternative data, Industry, Product, KPI-driven code analysis, Product strategy, Technology, CRO, Surveying, Pulse

Facteus ' recently launched Pulse data product continues to raise the bar in its latest rankings in Consumer Transaction Data Performance on Maiden Century's IDEA platform.

Key Points:

Facteus ' recently launched Pulse data product continues to raise the bar in its latest rankings in Consumer Transaction Data Performance on Maiden Century's IDEA platform.
Pulse has already jumped its top rankings to 77 consumer companies' KPIs from 65 just one month ago at launch.
Notably, Pulse ranks first in 28 companies' KPIs in forecast accuracy and top 3 in 49 other KPIs.
As a result, IDEA can empirically measure alternative data products using rigorous modeling methodologies to provide the most unbiased view on predictive accuracy.

FinTech Industry Veteran Joins Leading Alternative Data Firm CloudQuant

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Wednesday, July 6, 2022

Data Management, Professional Services, Technology, Fintech, Artificial Intelligence, Cornell University, Data fabrication, Intelligence, Solution, Noise, Alternative data, B2B, Technology, Research

CloudQuant , the leading provider of Alternative Data, Research, and Technology is proud to announce that Paul Bolton will be joining the Chicago Team as Director of Sales.

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CloudQuant , the leading provider of Alternative Data, Research, and Technology is proud to announce that Paul Bolton will be joining the Chicago Team as Director of Sales.
CloudQuant CEO and Founder Morgan Slade said, we are pleased to add industry veteran Paul Bolton, to our Data Sales team to expand our Data Scouting and Advisory business.
CloudQuant is an Alternative Data, Research, and Technology provider on a mission to deliver data solutions to global financial services and B2B clients.
Our Liberator Enterprise Data Warehouse and Data Fabric empower organizations to realize the power of historical and streaming data.