WASHINGTON--(BUSINESS WIRE)--Lokyata, a company focused on delivering products that digitize, automate, and scale lenders’ credit decisions, today announced the availability of a new white paper, “How Alternative Data Contributes to Fair Lending Decisions for Borrowers Affected by the Pandemic” that assesses the impact of Covid-19 on consumer lending and how financial institutions’ loan decisioning strategies have been affected.
Nearly 17% of American adults currently do not have a credit history or are deemed “credit invisible” -- a significant block of the population that is often overlooked by lenders. Additionally, the pandemic introduced a new level of complexity for lenders as unprecedented economic impacts in certain sectors, and subsequent government-backed forgiveness programs, have directly affected traditional credit scoring in ways not seen before.
Today, institutions looking to remain competitive in the modern lending environment have adapted by incorporating new technologies, along with alternative credit data and analytics, to gain a clearer, more comprehensive view into a consumer’s true financial picture. By leveraging alternative data sources, lenders can provide access to loans for many consumers who previously fell into the “credit invisible” category, while providing a responsible pathway to move many “near prime” consumers into “prime” status – all without taking on additional risk. This white paper explores the benefits of alternative data and actionable insights, and how financial institutions and other consumer lenders can automate tasks that no longer need to be done manually in the credit decisioning process.
“The impact of the pandemic on consumer lending has been profound, both in terms of the accelerated shift in digital transformation that many lenders have undergone as well as the recognition that traditional credit scoring has limitations when used exclusively to support decisioning,” said Steve Bireley, CTO at Lokyata. “With this white paper, we hope to provide some insight into how lenders are extending the value of their existing lending technology by automating bank statement analysis to make instant credit decision recommendations, and how many FIs are augmenting their use of the credit score to more effectively grow loan volumes in a compliant and responsible way.”
Lokyata’s latest white paper, “How Alternative Data Contributes to Fair Lending Decisions for Borrowers Affected by the Pandemic” is available for free download here.
About Lokyata
Lokyata’s global headquarters is in Washington DC with offices in Europe, India, and Latin America to serve its world-wide customer base of banks, non-banking finance companies, credit bureaus, and fintech lenders. Lokyata’s deep lending and credit risk experience, combined with a robust data science practice, pragmatic approach to data strategy, and scalable AI-driven platform deliver measurable results in increased loan approval rates, lower default rates, and improved financial margins. For more information visit www.lokyata.ai or email jd@lokyata.com.
