Law Enforcement and Public Safety

Alternative credit data looks beyond conventional credit bureau data, which typically focuses on long-established credit activities such as credit card, mortgage, and auto lending to include both life event insights like professional licenses, asset ownership and public records, as well as modern credit seeking behaviours from markets like online lending and short-term lending.

These non-traditional credit behaviours, when paired with the traditional credit behaviours currently used in conventional credit scores, deliver a comprehensive view into a consumer’s creditworthiness. 

 Alternative credit data broadens the view of a consumer’s credit behaviour beyond financial services accounts into other industries and life events with implications on consumer credit stability. This comprehensive and current visibility into consumer risk allows you to deliver smart, optimised offers for credit and services.

Having a broader view of a consumer’s credit behaviour allows you to meaningfully improve credit decisions and identify more applicants which meet current credit criteria. This is extremely critical in a lending environment where competition for new customers is fierce, and where a growing number of consumers are “credit invisible” — meaning they don’t have an established credit file with the national consumer reporting agencies.

The lack of credit history or a traditional credit score falling on-or-below a lender’s margin does not necessarily equate to unacceptable credit risk. When alternative credit data is combined with advanced analytic models, the result is a credit assessment that is both highly predictive and strongly uncorrelated with traditional credit scores – meaning it brings new information to the table which often adjusts the assessment of an applicant.

This incremental, predictive evaluation can allow you to form the comprehensive picture of an individual’s creditworthiness needed to improve credit decisions across the customer lifecycle and credit spectrum – notably identifying creditworthy marginal and invisible applicants who may have otherwise been declined.

An improved understanding of consumer credit risk can help yousee opportunity where others simply see risk.

Alternative credit scores may uncover significant changes in creditworthiness which can be missed by traditional credit scores. In addition to providing insight into consumer credit risk during the opening of an account, alternative credit data can also be used to monitor changes in creditworthiness within a customer population. Consumer creditworthiness changes over time, and alternative data allows you to see more of these changes and shifts in behaviour more quickly for more predictive credit decisions across the customer lifecycle.

The key to better lending decisions is incremental predictive insights. Using scoring models and attributes which tap into proven and reliable sources of alternative credit data allows you to:

• Expand Addressable Market
  Research this sizeable and valuable customer base

• Improve Credit Risk Decisions
  Leverage insights to differentiate between similar traditional credit profiles

• Enable Financial Inclusion
  Improve access to financial opportunities and help to ensure customers are treated fairly

• Gain a Holistic View of Identity
  Build a more complete risk profile of customers 

It is important to remember that credit solutions have no value – no matter their predictive strength – if they can’t pass through today’s stringent model governance and compliance assessments. All LexisNexis credit risk solutions are purpose-built to address modern regulatory requirements – including comprehensive fair lending standards and regulations compliance reviews.