Industry Research
"Give Credit Where Credit Is Due
Increasing Access to Affordable Mainstream Credit Using Alternative
Data"
By Michael A. Turner, Alyssa Stewart Lee, Ann Schnare, Robin Varghese,
and Patrick D. Walker
Summary
A recent study by the Brookings Institution examines the fact that
despite the vast accomplishments of the American credit system,
approximately 35 million to 54 million Americans remain outside the
credit mainstream. For a variety of reasons, mainstream lenders have
thereby extend credit to them.
This study offers a feasible market solution to bring those outside
the mainstream credit fold within it. Mainstream lenders can use
"alternative" or "nontraditional" data, including payment obligations
such as rent, gas, electric, insurance, and other recurring obligations,
to evaluate the risk profile of a potential borrower.
Click for an executive summary and full report
(PDF).
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