For Nova Credit, we conducted a survey of 185 decision makers in the lending industry in October 2022. The study found that underwriting could be better implemented, with three-quarters (74%) of lenders responding that they believe traditional credit report data does not paint the most complete picture of consumer credit worthiness, with most (59%) now turning to various forms of alternative data in their underwriting process to fill the gap. Lenders can learn from this study’s findings, as while more than half of lenders are tapping sources like non-transaction checking account data (64%), employment/income verification data (67%) and cash flow or bank transaction data (57%) to help complete their view, utility, rent payment and deep subprime data are highly underutilized (all cited by less than 40%). Hopefully our research has shown that by tapping into these relatively untouched data sources, lenders can be more effective.
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