Today, the majority of lenders leverage the scoring system offered by their national credit reporting agencies (CRAs) or bureaus as part of the creditworthiness assessment of borrowers. However, the availability of data is limited to applicants with an existing credit history, usually those in the middle to upper-income segments.

FinTechs such as credolab leverage a very particular type of alternative data – smartphone metadata – to generate digital behavioural scorecards that reduce the reliance on customers having existing banking or credit history. This Whitepaper throws light on how multiple industries, all at the intersection with financial services, can improve lending decisions and enhance customer experience through machine learning-driven credit risk modelling.