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    Lending Risks in Today’s Alternative Financial Services Market

Lending Risks in Today’s Alternative Financial Services Market

The Subprime Population is Broad and Diverse

Given the variability of the subprime consumer population, individuals seeking alternative financial services each carry their own unique history. But accessing a more complete view can be a challenge.
In this piece, we explore some of the challenges lenders encounter while looking to expand their consumer universe:

Concerns for mass migration online
Risks worth taking (and avoiding)
How to unmask a

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Millennial Lending: Adulthood Means More Personal Debt

There’s one fact about millennials that may be lost upon most, except for an increasing amount of lenders: all members from the generation known for college debt are now officially adults.

That’s according to Pew Research Center, which uses 1996 as the cut-off year of birth defining the generation.

Moneylenders may not be surprised because they’re the ones underwriting a growing share of personal debt to young adults. While building a

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    Generational Divide: How Age Affects the Preferences and Trends of Alternative Financial Services Users

Generational Divide: How Age Affects the Preferences and Trends of Alternative Financial Services Users

The more lenders know about their customers, the better equipped they are to align those consumers with the most relevant products and services.

In the alternative financial services (AFS) market, demographic data is essential to help define who consumers are, including the average age of borrowers, the type of credit channels and products they prefer (segmented by generation), average incomes by product type and how credit scores correlate with these

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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 a major shift in consumer FICO® credit scores.

It is believed that 30 to 40 million consumers experienced a negative change

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