#alternative-data

#alternative-data

"When we started out, the problem we were trying to solve was, 'How can we make underwriting smarter, faster, so that these entrepreneurs get access to capital?'" Gammage, CEO, said. "We wanted a world where money moved freely like it did in other verticals. We came in with a borrower-centric experience, whereas a lot of companies were focused on 'how do we make this work for lenders.'"

Experian said this week it will make VantageScore 4.0 available at no cost indefinitely, pledging that if it ever begins charging, its pricing will remain at least 50% lower than FICO's. A week earlier, Equifax said it will offer VantageScore 4.0 at $4.50 per score through 2027, while also providing it for free through 2026 to customers who purchase FICO scores during that period.

The credit industry is shifting how it evaluates borrowers. Traditional credit scoring has left over a billion people without access to financial services, but lenders are increasingly turning to alternative data-bank transactions, spending patterns, real-time financial behavior-to make more informed decisions about creditworthiness.