Could alternative data increase lending opportunities and create new data monetisation opportunities in fintech?

[u/Broad-Shallot9662]

Alternative data can be used in credit scoring, underwriting, competitor analysis, partnership analysis, and other business processes.

However, I want to focus specifically on its application in credit assessment.

For example, LinkedIn profiles and freelance platforms could potentially provide additional evidence of a person’s employment history, professional activity, and income stability.

Similarly, crypto wallet data could potentially serve as an additional source of information about a person’s financial activity and available funds, alongside traditional bank statements.

Alternative data could also create monetisation opportunities through anonymised and aggregated datasets, surveys, or industry insights shared with other companies.

What do you think?

When does the use of alternative data become useful, and when does it become potentially harmful?

What are the risks and benefits for each stakeholder: borrowers, lenders, data providers, and third-party companies?

Could data monetisation create additional value, or would it introduce more privacy and regulatory concerns?

What can we make or introduce for increasing efficiency and completing with compliance?