The FT's Alphaville digs into Moody's description of what future data sets, like education, academic scores, labour profile, job history and other professional skills, will / might flow into how credit is underwritten.
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How big data really fits into lending
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Here’s Moody’s again, with the final clue: The availability of new predictive systems and additional data increases the risk that lenders will use them as a justification for granting credit to financially weaker borrowers who would previously have been excluded. [...] In the US, the benefits of alternative data sources have predominantly included increasing access to credit for those with no/limited credit history.So, we have a new kind of innovative, underscrutinised financial technology that allows credit to flow to high risk borrowers. Haven’t we heard that before, somewhere?
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