Alternative Data for Credit Approvals
ABA Consumer Financial Services Committee Business Law Section 2019 Annual Meeting Washington, D.C. Robert Savoie (Cleveland) led a roundtable workshop titled “Alternative Data for Credit Approvals” during the ABA Consumer Financial Services Committee Business Law Section 2019 Annual Meeting in Washington, D.C. Innovation in financial services has led to companies seeking to build smarter underwriting systems. The process has involved both a more sophisticated use of existing application data as well as changes to the types of data collected and used in credit underwriting. In the highly regulated financial services industry, federal and state laws and regulations pose challenges to the deployment of these underwriting protocols. The roundtable examined how companies are using new and existing data in innovative ways, how companies are confronting applicable laws such as ECOA and FCRA, and how the regulatory agencies have reacted to this innovation to date.