Alternative Credit Scoring : Concept, Practice and Global Developments

A large quantum of technical work is underway in the area of alternative credit scoring to better understand and put in place an effective process of the credit risk measurement and management. However, the traditional and new approaches have their complementarities and inter-dependence. Use of the alternative data and application of the behavioural sciences have added to the scope and utility of the alternative credit analysis and scoring. The alternative credit scoring can act as a very useful bridge between digital footprints and financial footprints and thereby can help both the potential borrowers and financial institutions to achieve their respective goals