Alternative lending

Pandemic exposes limits of lenders' traditional credit metrics


Lenders need to use alternative data as an overlay to traditional underwriting methods to help creditworthy customers in hardship because of the coronavirus crisis.


Alternative data could be lifeline for consumers needing credit


Congress should pass legislation authorizing use of nontraditional data sources to make credit more available to consumers who’ve taken a hit from the coronavirus pandemic.


Don’t ditch disparate impact


Attempts to rewrite the method for determining unintended discrimination in housing should not bleed into fair-lending laws.


Online lender Petal hires Kabbage’s chief risk officer


Kaustav Das was part of Kabbage’s effort to transform small-business lending by using new data analytics, and the CEO of Petal wants him to help it do the same in consumer credit cards.


Alternative data is not the enemy of underwriting


Regulators are beginning to recognize the importance of using alternative data to provide credit for the underbanked. Now is the time to expand its use across the industry.


'Out of the shadows': Use of alternative data in lending gains ground


Financial regulators’ statement cautiously encouraging banks to go beyond traditional underwriting in their lending decisions is a big step forward for the use of alternative data and artificial intelligence, bankers say.


Consumer credit will remain strong in 2020: TransUnion


Casting aside recession fears, the credit bureau predicts credit cards, mortgages, auto loans and unsecured personal loans should all perform well — including those extended by online lenders.


Regulators give wary nod to use of alternative data in underwriting


Alternative data "may improve the speed and accuracy of credit decisions and may help firms evaluate the creditworthiness of consumers," the agencies said.


Kabbage gets into payments — and in Square and PayPal's face


The online platform lender Kabbage is making the move beyond just providing working capital loans to small businesses, putting it in direct competition with alternative acquirers and payment companies.