Financial Services

In 2010, alternative financial service providers funded approximately $50 billion dollars in loans to roughly 30 million consumers. At an average loan size of $325.00 dollars, this represents on the order of 150 million loan transactions that do not appear on the credit reports of the big three credit bureaus. This lack of visibility to an already large and ever-growing consumer segment means incomplete information for intelligent decision making and reduced high-risk lending. Conversely, businesses lacking valuable alternative data often overlook the needs of the under-banked/unbanked market and may miss beneficial revenue-generating opportunities.

As a lending professional wouldn't you like to know which of your current or prospective customers have or are participating in alternative financial services?

Clarity's alternative data strives to bridge the gaps left by traditional credit bureaus.

Lenders have exhausted the credit bureaus as a data source for screening consumers' applications due to the heavy focus and solicitation of consumers in the near-prime and super-prime segments in the last decade. Models and products targeting the under-banked, unbanked, and emerging consumer populations have largely been in-effective. However, consumers identified as subprime and near prime on the major bureaus are largely ignored by lenders and are forced to alternative sources for liquidity, sources whose data is shunned by the major bureaus. Meanwhile, analysts employed by financial institutions are struggling to build models based on existing credit bureau data that can generate 'lift' in response rates - Clarity's alternative data can help paint an even more complete picture for the necessary 'lift'.

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