Paper Type
ERF
Abstract
The rapid emergence of risk management Fintech has led to increasing use of alternative data in personal and business financing. Yet there are significant risks and concerns resulting from using alternative data. We therefore seek to examine the differential role of alternative data in SME-focused Fintech lending. We compare the credit evaluation and fraud detection contexts and examine the circumstances under which alternative data are useful for both contexts. Our goal is to find a parsimonious set of traditional and alternative data types that can help facilitate risk management in SME-focused Fintech lending. In this short paper, we report some preliminary results and findings from the first phase of our data collection and analysis. We then discuss the potential contributions and future plans of the study.
Recommended Citation
Zou, Weifei; Vance, Anthony; and Yan, Jie (Kevin), "The Differential Role of Alternative Data in SME-Focused Fintech Lending" (2020). AMCIS 2020 Proceedings. 7.
https://aisel.aisnet.org/amcis2020/social_inclusion/social_inclusion/7
The Differential Role of Alternative Data in SME-Focused Fintech Lending
The rapid emergence of risk management Fintech has led to increasing use of alternative data in personal and business financing. Yet there are significant risks and concerns resulting from using alternative data. We therefore seek to examine the differential role of alternative data in SME-focused Fintech lending. We compare the credit evaluation and fraud detection contexts and examine the circumstances under which alternative data are useful for both contexts. Our goal is to find a parsimonious set of traditional and alternative data types that can help facilitate risk management in SME-focused Fintech lending. In this short paper, we report some preliminary results and findings from the first phase of our data collection and analysis. We then discuss the potential contributions and future plans of the study.
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