alternative credit scores

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    ALTERNATIVE CREDIT SCORES: opportunities and challenges

    As new institutions step into banks’ traditional lending domain, alternative credit score models are causing disruption in the way loans are underwritten and applicants are assessed. Thanks to technology innovations focused on data science, revenue opportunities abound as new entrants look to serve a large, overlooked yet creditworthy market. In this article, Adi Ghosh and Harsh Sharma examine the changing landscape of lending; the opportunities for new entrants in the alternative credit score market; and the risks and challenges that emerging and traditional players face. As the financial services industry looks to the future, there is widespread recognition to leverage [...]