In a joint statement, the Federal Reserve Board, CFPB, FDIC,
National Credit Union Administration and the OCC (collectively, the
"agencies") highlighted the benefits of banks, credit
unions, and non-bank financial firms using alternative data for
credit underwriting and mitigating risk. Alternative data was
defined as "information not typically found in the
consumer's credit files of the nationwide consumer reporting
agencies or customarily provided by consumers as part of
applications for credit."
In the statement, the agencies said that using alternative data
can:
- improve the "speed and
accuracy" of credit decisions for consumers who may not
receive credit in the mainstream credit system;
