Alternative data offers a transformative opportunity for the financial industry to enhance credit risk assessment. By providing a more inclusive, accurate, and real-time evaluation of creditworthiness, it enables lenders to make better-informed decisions and extend credit to a broader segment of the population. Additionally, even for those with robust credit files, traditional credit data, at times, provides an incomplete picture of someone’s full financial situation and repayment risk.

Adhering to credit portfolio management regulations is more than mandatory; it’s a strategic advantage. Fintech companies that prioritise compliance not only sidestep regulatory issues but also earn the trust of borrowers and investors. With the regulatory landscape for credit portfolio management being multifaceted and constantly evolving, let’s delve into the most prominent ones.