This paper, published in the Journal of Risk Management in Financial Institutions, demonstrates the value of non-traditional data as a powerful tool for consumer credit risk assessment while highlighting some of the potential risks and precautions that lenders need to think about before using these tools.
As the Brazilian congress weighs its options, we survey and analyze the more comprehensive and systematic of the studies to detail important lessons to consider on the eve of credit reporting reform in Brazil.
The first PERC survey of small businesses in New Orleans and other FEMA-declared disaster areas in the wake of the 2005 hurricanes finds disparate impacts among different segments of business owners. The results also yield insights into the efficacy of existing recovery policy, and identify policy shortcomings and unmet needs.
The study assesses the impact of varying participation rates on access to credit and default rates in Latin America. A series of micro-simulations demonstrates the importance of participation in a private, full-file credit reporting system.
This study examines the uses of provider-identifiable data within the US healthcare system with particular emphasis on the impact of the commercial use of this data on the market for prescription drugs. Impacts on market structure, the operation of the market, and other non-economic variables are also addressed. Additionally, the study explores the role of these data in regulatory compliance and public research.
The study compares the fragmented Japanese consumer credit reporting regime with a hypothetical comprehensive one. Impacts of the varying regimes — each with different types and amounts of payment information available to creditors — upon access to credit and default rates, growth in lending to the private sector and overall economic growth are examined.
PERC’s landmark study on bringing the estimated 35 to 54 million Americans outside the mainstream credit system into the credit fold, Give Credit Where Credit Is Due offers feasible market solutions involving “alternative” or non-traditional payment data, such as payment obligations such as rent, gas, electric, insurance, and other recurring obligations, to evaluate the risk profile of a potential borrower.
Identity theft is a significant problem in need of federal legislation. Any standard for breach notification must be uniform and therefore national. This study examines the challenges of establishing a national standard.
PERC’s initial study on alternative data, Giving Underserved Consumers Better Access to the Credit System examines the likely win-win outcome if non-traditional data is included in credit files.
This study is an assessment of personal data privacy and security in business process outsourcing firms in India.