Mistrust and Misaligned Incentives Keeps Out Alternative Data

“There exists a wealth of data that could be used to drive financial inclusion.  If it can be accessed, it could dramatically increase access to financial services for low income persons worldwide.”

Mistrust and misaligned

Accessing alternative data is difficult, as the owners of it have little incentive to freely share their data with a traditional credit bureau. Further, owing to legitimate data security concerns, data furnishers also don’t trust third parties with their customer data. Finally, most don’t believe it’s fair for others to monetize their data without compensation, as is done by credit bureaus under the traditional model.