Alternative Data Use Can Expand Credit Access, CFPB Says
Law360 (August 6, 2019, 8:11 PM EDT) -- A review of fintech lending company Upstart's practices painted a favorable picture of its nontraditional data use, which allows it to provide more, and cheaper, loans to those who might otherwise struggle to secure credit, the Consumer Financial Protection Bureau said Tuesday.
Upstart Network Inc.'s use of alternative data, like work history and education, in its lending algorithms significantly increased access to credit by approving 27% more applications than a traditional lending model, the CFPB said in a post on its website. The post also outlined that annual percentage rates were 16% lower through Upstart.
Increased access to credit was present...
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