OUR GAME CHANGING ALTERNATIVE DATA
DIGITALIZATION AND SHARING MODEL
AltData is part of Experian MicroAnalytics’ data monetisation program. It allows non financial institutions such as MNOs, utility providers, agricultural aggregators, etc. to become Data Providers and monetise their internal data while contributing to financial inclusion, all in compliance with the local data protection regulations.
The value of AltData, compared to the data held in traditional credit bureaus, consists in assembling real time non-financial payment data such as mobile wallet, mobile phone usage, digital transactions, energy utility payments and other data that is not captured and used in traditional credit bureaus.
It works as follows: after receiving prior informed consent from the borrower, a lender can invoke AltData, which pulls data on line from the participating Data Providers and transforms such data into a single report including a financial identity (that the borrower is who he/she claims to be) and a financial profile including a risk score.
This information is then used by the lender in combination with other available information to make an informed decision about whether or not to extend credit, the amount, and the terms. This enables fairer, more inclusive, responsible and sustainable lending.
Benefits for the lenders include access to new data, leading to more precise credit risk assessment.
Benefits for the Data Providers include the ability to offer their customers the advantages of building a good credit history and therefore increased access to affordable credit and other financial services, and monetising their internal data while maintaining control over their own database.