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Alternative Data Meets Explainable AI

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Scienaptic and Lexisnexis Risk Solutions Align

Scienaptic announced the formation of an alliance with LexisNexis® Risk Solutions that enables Scienaptic to integrate seamlessly alternative data and AI into its credit decisioning platform, Ether. Financial institutions now have access to cutting-edge predictive tools that help them expand their loan portfolios.

Until recently, lenders largely relied on credit-bureau data such as utilization, delinquency, and credit inquiries to determine consumer riskiness. However, a bureau score isn’t the only indicator of a person’s financial responsibility or ability to repay. Ether combines FCRA-compliant alternative data with bureau data to deliver superior predictive power, using prebuilt APIs.

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Financial institutions looking to expand their addressable market are engaging with Ether, which offers a suite of smart AI tools to better identify qualified prospects, flag high-risk prospects, and offer a more complete risk assessment. This approach allows financial institutions to attract prospects that were previously off the map and lend profitably to a previously underserved market.

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“Profound technological advancements such as explainable AI and alternate data have precipitated radical shifts in underwriting. We feed a wide range of non-traditional data sources real-time to our AI models for a 360-degree creditworthiness assessment. In our own implementations, we have seen lifts in range of 25-40% when combining alternate data and AI,” said Pankaj Jain, partner and president, Scienaptic.

“This alliance represents another opportunity and pathway for lenders to grow their loan portfolios while doing so at reduced risk,” said Ankush Tewari, vice president, credit risk strategy, LexisNexis Risk Solutions. “It is efforts like this one that will help provide access to credit to underserved consumers.”

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