Refers to the use of publicly available consumer information to create reliable risk profiles of credit applicants. While traditional credit scoring is based on data from payment history, current debt, the length of credit history or the credit utilization ratio, alternative approaches also include additional data sources. Among the examples is Fico, which draws personal data from social networks (social data) or online profiles, transaction-related data from past purchases, outstanding payments, cell phone payments, income or bank information. It enables customers without bank accounts to qualify for loans.
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