Building smart credit scoring engines using alternative data, behavioral patterns, and predictive modeling

In recent years, there have been drastic changes in consumer sentiment toward financial services. Many customers who opened accounts with traditional banks have transferred service relationships to Fintech companies. There are myriad reasons for this phenomenon, such as uncompetitively low interest rates, lack of convenience in branch modernizing, customer disappointment with the risk of bailing out, complete substitution of financial intermediation by market-based financing through shadow banks, increased management overheads, and expansion of campaigns for non-customers from alternative financial service contractors. Fintech companies often do not have their banks. However, they provide loan products through their partner banks, who must not only comply with costly regulation but also take on huge risks with respect to those loans.