Alternative data meets explainable AI
Jan 9, 2019
Scienaptic announced today the formation of an alliance with LexisNexis® Risk Solutions that enables Scienaptic to integrate seamlessly alternative data and AI into its credit decisioning platform, Ether. Financial institutions now have access to cutting-edge predictive tools that help them expand their loan portfolios.
Until recently, lenders largely relied on credit-bureau data such as utilization, delinquency, and credit inquiries to determine consumer riskiness. However, a bureau score isn't the only indicator of a person's financial responsibility or ability to repay. Ether combines FCRA-compliant alternative data with bureau data to deliver superior predictive power, using prebuilt APIs.
Financial institutions looking to expand their addressable market are engaging with Ether, which offers a suite of smart AI tools to better identify qualified prospects, flag high-risk prospects, and offer a more complete risk assessment. This approach allows financial institutions to attract prospects that were previously off the map and lend profitably to a previously underserved market.
"Profound technological advancements such as explainable AI and alternate data have precipitated radical shifts in underwriting. We feed a wide range of non-traditional data sources real-time to our AI models for a 360-degree creditworthiness assessment. In our own implementations, we have seen lifts in range of 25-40% when combining alternate data and AI," said Pankaj Jain, partner and president, Scienaptic.
"This alliance represents another opportunity and pathway for lenders to grow their loan portfolios while doing so at reduced risk," said Ankush Tewari, vice president, credit risk strategy, LexisNexis Risk Solutions. "It is efforts like this one that will help provide access to credit to underserved consumers."
Scienaptic is an AI-driven Credit Underwriting platform company. Its platform Ether Underwrite is creating industry leading improvements in higher application approvals (15-40%) and lower credit losses (10-25%) with all the regulatory explainability (model explainability, FCRA compliant adverse action reasoning and SR 11-7 compliance). Scienaptic uses alternate data, raw trade line level bureau data and AI to help banks find new credit eligible segments of customers.
Visit us at http://www.scienaptic.com to know more
About LexisNexis® Risk Solutions
LexisNexis Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX Group (LSE: REL/NYSE: RELX), a global provider of information and analytics for professional and business customers across industries. For more information, please visit http://www.risk.lexisnexis.com and http://www.relx.com.