Traditional credit scores exclude millions of potential borrowers simply because they lack a formal credit history, prompting lenders to explore alternative signals like utility payments, mobile usage and cash-flow patterns. This approach is gradually extending credit access to previously overlooked groups, including gig workers and small traders. The key challenge going forward is ensuring these alternative models remain fair and explainable, rather than introducing new, less visible forms of bias.
Alternative Data Opens Credit to Borrowers Without Formal History
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