Alternative Data

Alternative data is essentially anything that falls outside of traditional financial or fundamental data. Alternative data includes new data sources  including alternative financing, account aggregation, as well as on-time utility and rental payments. Financial institutions are adopting and benefiting from these new data sources.

Without credit, it is nearly impossible to buy a home or start a business. People face barriers to accessing credit or pay more for credit for several reasons. Some have negative items on their credit report, such as a record of late payments. Some have trouble documenting their income.

Still others have either no credit history or a credit history that is too scarce, or “thin,” to generate a credit score. This issue affects an estimated 62 million Americans and more often affects African-American, Hispanic and low-income consumers, according to the Consumer Financial Protection Bureau (CFPB).

This is where alternative credit data can play a positive role.

The Missing Piece: Alternative Financial Data

The financial crisis of late 2008 triggered a sharp increase in unemployment, seeing the rate jump from 5.5 percent to a high of 10.1 percent; a rapid reduction in consumer loans offered by large banks; and a staggering devaluation of home values resulting in foreclosures and strategic defaults creating

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Why Alternative Credit Data Is Invaluable

Alternative credit data is often used as a catchall term to describe financial data. This data is typically sourced from alternative financial service providers and account aggregation, on consumers who are not abundantly reported on mainstream credit reports.

Other insightful details may include an individual’s income and employment history, coming

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Clarity Services, Inc. Celebrates 200th Customer: Customers Cite Easy Integration And Powerful Data As Drivers For Change

Press Release 09/02/2010

CLEARWATER, FL – September 2, 2010 – Clarity Services, Inc. announces the integration of its 200th customer today. Founded in 2008, Clarity Services has been serving financial institutions in the sub-prime and underbanked markets for two years.

“Clarity Services is excited to announce the integration of its 200th

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