New York: Scienaptic announced today, 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.
Scienaptic’s AI-driven credit underwriting platform, which through its product Ether Underwrite, helps with higher application approvals of nearly 15 to 40% and lower credit losses of nearly between 10 to 25%. The product factors in all the regulatory explainability, FCRA compliant adverse action reasoning and SR 11-7 compliance. Scienaptic uses alternate data, raw trade line level bureau data and AI to help banks find new credit eligible segments of customers.
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 pre-built APIs.
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 under-served market.
“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 at Scienaptic.
“This alliance represents another opportunity and pathway for lenders to grow their loan portfolios while doing so at reduced risk,” said Ankush Tewari, VP for Credit Risk Strategy at LexisNexis Risk Solutions. “It is efforts like this one that will help provide access to credit to under-served consumers.”
Headquartered in Atlanta, with offices throughout the world, LexisNexis Risk Solutions uses advanced data analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions for a global demand across a wide range of industries including insurance, financial services, healthcare and government.