Alternative credit data refers to non-traditional information lenders, financial institutions, and service providers use to assess an individual's creditworthiness and stability. While traditional scoring models primarily rely on payment history, outstanding debts, & length of credit history as indicators of worth, alternative data broadens this scope by including employment and income data as additional sources.
Smile API offers banks, fintech companies, recruitment agencies, and other service providers secure access to alternative credit data via its user-authorized API. Smile provides convenient access to valuable employment and income data sourced from HR systems, payroll providers, e-commerce platforms, and marketplaces - giving banks, fintech firms, recruitment agencies, and service providers more informed decisions when lending money, buying financial products, or finding employment opportunities.
Integrating alternative credit data into decision-making processes offers several distinct advantages. First, it expands financial inclusion by giving individuals with limited or no traditional credit histories access to services using non-traditional indicators of creditworthiness. Furthermore, alternative data provides lenders with improved risk evaluation abilities, leading to more accurate lending practices; also, by using alternative credit data, financial institutions can mitigate default and delinquency risks and thus enhance portfolio performance while simultaneously decreasing overall costs.
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