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April 11, 2024
Top 10 Alternative Data Providers That Serve the Credit Industry
Discover the best alternative data providers and their data types to identify solvent clients and defaulters.
Discover the best alternative data providers and their data types to identify solvent clients and defaulters.
Around the world, 1.4 billion people can't get loans because they don't fit into the traditional scoring models. That's almost 20% of people worldwide who are left out.
In response to this challenge, more lenders are turning to alternative data, which goes far beyond borrowers' credit histories.
In this article, you'll find a list of alternative data providers that can give you a more detailed view of your customers and lead you to potentially lower risks and higher opportunities.
Alternative data refers to non-traditional sources of information that lending organizations use to gather additional insights into borrowers.
Unlike traditional data such as credit reports, income statements, and other financial documents, alternative data covers a wide range of sources. These include social media activity, mobile phone usage, utility and rental payments, and more.
As of 2024, the alternative data market size stands at approximately $11 billion.
By 2030, this figure is expected to grow to $135.8 billion. Thus, the market will demonstrate a CAGR of 52.1%.
This trend is illustrated by the graph presented below:
Another statistic demonstrates the prevalence of alternative data in different regions.
According to Precedence Research, 68.5% of the revenue from their usage comes from North American countries. Europe is second in this ranking, followed by the Asia-Pacific region, Latin America, the Middle East, and Africa.
We relied on specific criteria to compile a list of alternative credit data providers. In our view, such providers should offer data that:
After conducting a detailed analysis of existing market players, we have identified 10 providers whose services align with the characteristics mentioned above:
Description: RiskSeal is a powerful Digital Credit Scoring system providing clients with over 300 data points sourced from 120+ alternative channels. The solution enhances credit scoring models by analyzing the digital footprint of potential borrowers.
Website: https://www.riskseal.io/
Founded: 2022
Alternative data the company provides:
Cost: Starting from $499/month, flexible pricing policy, pay-as-you-go model, no additional integration fees, support and training included.
Trial period: Free PoC is available.
Description: Plaid is an alternative data provider that allows assessing potential clients' banking transactions, incomes, and expenses.
Website: https://plaid.com
Founded: 2017
Alternative data the company provides:
Cost: Two pricing plans: free and custom.
Trial period: Available.
Description: Rubix is an analytical platform that helps mitigate credit risks, build a secure supply chain, and monitor compliance with requirements for platform users in India and worldwide.
Website: https://rubixds.com/
Founded: 2017
Alternative data the company provides:
Cost: Customized pricing; you should contact a manager for details.
Trial period: Data not available.
Description: LenddoEFL is a scoring system that utilizes artificial intelligence, machine learning, and predictive analytics to analyze both traditional and alternative data. The company positions itself as a market leader in psychometric data, which is used to assess the creditworthiness of borrowers.
Website: https://lenddoefl.com
Founded: 2011
Alternative data the company provides:
Cost: There is no publicly available information regarding pricing. You must fill out the feedback form on the website to obtain information about tariffs.
Trial period: Data not available.
Description: credolab is a platform that enriches scoring models with alternative data for risk assessment, fraud detection, and improving marketing campaigns.
Website: https://www.credolab.com/
Founded: 2016
Alternative data the company provides:
Cost: Starting from $600/month.
Trial period: A 30-day free access available.
Description: ArkOwl is a platform that enables real-time verification of email addresses and phone numbers. The platform provides clients with raw data, based on which they can assess the reliability of any user.
Website: https://arkowl.com/
Founded: 2012
Alternative data the company provides:
Cost: The platform offers several payment options: monthly subscription, upfront payment, or pay-as-you-go model.
Trial period: Available – registration required.
Description: The MicroBilt platform provides users with alternative data and predictive algorithms to assess the creditworthiness of their clients or partners across various industries.
Website: https://www.microbilt.com/
Founded: 1978
Alternative data the company provides:
Cost: Available by subscription, with prices depending on the volume of services provided.
Trial period: Available; you should contact a manager for details.
Description: IDology is a platform that offers solutions for verifying consumer identities at the point of transaction, helping to prevent fraud, reduce costs, and ensure regulatory compliance.
Website: https://www.idology.com/
Founded: 2003
Alternative data the company provides:
Cost: Pricing offers are tailored individually. You need to contact a manager to find out the price.
Trial period: Available. You need to contact a manager for details.
Description: Dana is a tool designed for e-commerce platforms, enabling them to offer users instant loans through a digital lending platform.
Website: https://dana.money/
Founded: 2021
Alternative data the company provides:
Cost: You need to contact a manager for information regarding the cost of services.
Trial period: No information is available on the official website.
Description: Monnai is a solution for fintech companies that use AI for the analysis of disparate customer data, identification, and online behavior assessment.
Website: https://monnai.com/
Founded: 2021
Alternative data the company provides:
Cost: Flexible pricing policy.
Trial period: Available.
Alternative data refers to non-traditional sources of information that lending organizations use to gather additional insights into borrowers.
Its utilization allows lending organizations to expand their target audience by offering loans to demographics without credit history or those underserved by banking services.
Moreover, alternative data enables lenders to make more informed decisions on loan applications, thus reducing default risks.
The current volume of the alternative data market stands at $11 billion and is annually increasing. It is forecasted to demonstrate a CAGR of 52.1% over the next six years, reaching $135.8 billion by 2030.
Alternative data provides lenders with a more comprehensive view of borrowers' creditworthiness.
Alternative data providers offer information that allows concluding potential clients' financial status based on factors like subscription payments, timeliness of rent and utility payments, online consumer behavior, etc.
While there are many alternative data providers in the market, most of them cater to organizations across various industries.
RiskSeal, as an alternative data provider, exclusively focuses on credit risk management, deeply understanding the specifics of lending businesses. The company offers lenders an innovative solution to enrich their scoring models with alternative data.
RiskSeal offers a suite of alternative data types designed to analyze digital footprints for credit risk assessment.
These include:
Behavioral metrics, which analyze user interaction patterns.
Trust score - a composite metric assessing user trustworthiness
Email and phone data enrichment, which enhances user identity information.
User social media search, for insights into a user's online presence.
IP analysis, which examines the geographical and network attributes of user connections.
Photo matching and name intelligence for verifying the authenticity of user-submitted names and images.
Together, these tools provide a comprehensive picture of user behavior and authenticity.
Alternative data refers to non-traditional sources of information that lending organizations use to gather additional insights into borrowers.
Its utilization allows lending organizations to expand their target audience by offering loans to demographics without credit history or those underserved by banking services.
Moreover, alternative data enables lenders to make more informed decisions on loan applications, thus reducing default risks.
The current volume of the alternative data market stands at $11 billion and is annually increasing. It is forecasted to demonstrate a CAGR of 52.1% over the next six years, reaching $135.8 billion by 2030.
Alternative data provides lenders with a more comprehensive view of borrowers' creditworthiness.
Alternative data providers offer information that allows concluding potential clients' financial status based on factors like subscription payments, timeliness of rent and utility payments, online consumer behavior, etc.
While there are many alternative data providers in the market, most of them cater to organizations across various industries.
RiskSeal, as an alternative data provider, exclusively focuses on credit risk management, deeply understanding the specifics of lending businesses. The company offers lenders an innovative solution to enrich their scoring models with alternative data.
RiskSeal offers a suite of alternative data types designed to analyze digital footprints for credit risk assessment.
Together, these tools provide a comprehensive picture of user behavior and authenticity.