The Year of Alternative Data2017 was a pretty busy year for the Alternative Data industry. From a call for response from the CFPB to the removal of liens and judgments data, my colleagues and I have been tackling these trending topics both in person and on the Credit Risk Insights blog. In looking forward to 2018, we’re taking a moment to reflect on the happenings of 2017.

  1. A very interesting development was the CFPB’s “Request for Information” from alternative data companies so they could study the potential disparate impact and differential effects on lending. Of course, we submitted a response, check out this blog and learn more about our specific case studies pertaining to the use of alternative data and the treatment of minority groups in credit decisioning.
  1. In July, one of the requirements of the National Consumer Assistance Plan (NCAP) Settlement took effect. And that is that the three traditional consumer credit bureaus (Experian, Equifax and TransUnion) were required to remove Lien and Judgment data from their credit reports. Read the settlement agreement here.What is still interesting to note, is that LexisNexis® Risk Solutions was not named in the lawsuit nor were we obligated to adhere to the terms of the settlement. We did, however, react to the spirit of the settlement in a few ways. I’ve spoken to dozens of lenders this year about our position in the market and you can learn more from this posting by my colleague.
  1. Another big event that has the potential for a big impact on the lending industry is the change in leadership at the CFPB. While we haven’t, and won’t likely comment on it, it still has the potential for big impacts on the regulatory environment. Read more on Richard Corday’s decision to step down, here.

On behalf of my colleagues, thank you to everyone who subscribes to our blog and we hope everyone had a great year. Here’s to a successful 2018.

About the author: John has a dual role consulting on using alternative data for marketing data analytics and consumer credit risk decisioning at LexisNexis™ Risk Solutions. These roles intersect at many points throughout the customer lifecycle starting with marketing strategy (acquisition, cross-sell/upsell, customer service and retention) through credit underwriting and account management. The goal is to help companies increase organizational efficiencies and effectiveness using a pragmatic, empirical data-driven approach that allows for measuring, refining, and scaling customer insights across the enterprise.

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