New data sources enable an entirely new risk system based on metrics that have di昀昀erent characteristics than a typical FICO-based analysis, which fails to factor in key 30 indicators such as bank account balance, income, and salary . those metrics enable: real-time analysis of activity that gives a total picture of a borrower drawn a more realistic picture of a borrower’s from multiple sources including 昀椀nancial pro昀椀le behavioral data. Fully integrated data systems enable credit to be reviewed from multiple customer accounts (in昀氀ows) and allow 昀椀nancial products to be right-sized for the transaction, which is one of the most important components to funding appropriately without over-levering. alternative credit data is increasing in use globally31 Local regulations in each geo dictate which data is legally permissible for use in credit decisioning Credit data Credit scoring models Traditional scoring model Credit account Financial e.g. FICO information judgements Mainstream alternative scoring models Utility Other regular e.g. VantageScore payments payments Often unavailable Fringe alternative scoring models Government Shopping e.g. ZestFinance records habits Social Location Web tracking media data ALTERNATIVE DATA PROVIDES A FRESH VIEW INTO FINANCIAL HEALTH SHARE VISIT PG 21