Publication:
The Use of Alternative Data in Credit Risk Assessment: Opportunities, Risks, and Challenges

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dc.contributor.authorWorld Bank
dc.date.accessioned2025-03-18T21:11:54Z
dc.date.available2025-03-18T21:11:54Z
dc.date.issued2025-03-18
dc.description.abstractDigitalization accelerated by the pandemic has exponentially increased the number and variability of alternative data sources. The stay-at-home requirements during the pandemic forced several business models to be digitized. This helped spur the digitization that had been ongoing pre-pandemic, largely driven by governments as countries sought to leverage the benefits of the digital economy. Advances in technological innovations are also facilitating the development of advanced credit underwriting models and the use of structured and unstructured data to assess creditworthiness. This has enabled the financial industry to actively integrate alternative data to gain a competitive edge. This study examines the evolution of the use of alternative data in creditworthiness assessment since the ICCR issued its Policy Guidance Note in 2018. The report identifies the use cases of alternative data in creditworthiness and the emerging models across geographical regions. After assessing the evolution of associated legal and regulatory frameworks, it concludes by offering recommendations and policy considerations. The findings of the study are detailed below.en
dc.identifierhttp://documents.worldbank.org/curated/en/099031325132018527
dc.identifier.doi10.1596/42970
dc.identifier.urihttps://hdl.handle.net/10986/42970
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.rightsCC BY-NC 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by-nc/3.0/igo
dc.subjectGOOD HEALTH
dc.subjectINNOVATION
dc.subjectDIGITALIZATION
dc.subjectTECHNOLOGICAL INNOVATIONS
dc.subjectCREDIT UNDERWRITING MODELS
dc.titleThe Use of Alternative Data in Credit Risk Assessmenten
dc.title.subtitleOpportunities, Risks, and Challengesen
dc.typeReport
dspace.entity.typePublication
okr.date.disclosure2025-03-18
okr.date.doiregistration2025-04-14T11:54:59.453735Z
okr.date.lastmodified2025-03-16T17:05:08Zen
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/099031325132018527
okr.guid099031325132018527
okr.identifier.docmidP179614-3e01b947-cbae-41e4-85dd-2905b6187932
okr.identifier.externaldocumentum40000761
okr.identifier.internaldocumentum40000761
okr.identifier.report197836
okr.import.id6910
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttps://documents.worldbank.org/curated/en/099031325132018527/pdf/P179614-3e01b947-cbae-41e4-85dd-2905b6187932.pdfen
okr.region.geographicalWorld
okr.sectorFY17 - Capital Markets
okr.sectorFinancial Sector
okr.themeFY17 - Financial Infrastructure and Access,FY17 - Payment & markets infrastructure,FY17 - Gender,FY17 - Credit Infrastructure
okr.themeFY17 - Finance,FY17 - Human Development and Gender
okr.topicHealth, Nutrition and Population::Communicable Diseases
okr.topicScience and Technology Development::Technology Innovation
okr.topicFinance and Financial Sector Development::Access to Finance
okr.unitProsperityFCIFinInclInfra&Acc (EFNFI)
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