There is an opportunity to capture greater insights about consumers’ established record of managing their rental-, telecommunication-, and utility-related financial obligations as part of their overall credit history. The inclusion of this type of information in the credit file will be particularly beneficial to consumers who otherwise have limited credit experience, allowing these consumers to have their history of complying with these financial obligations included in their credit profiles and factored into credit scores. Ultimately, increased reporting of rent, utility and telecommunications data in credit files in a standardized fashion will also allow credit-scoring models and other decisioning tools to leverage these types of data to an even greater degree in the algorithms, leading to enhanced accuracy in risk assessments and overall better decisions.
1- More Financial Inclusion
2- Increased Competition Delivers Innovation and Choice
3- Lower Systemic Risk Due to Use of Alternative Models