Affirm generates a decision on loans within seconds,
using nontraditional data such as shopping history and other consumer data publically available, it says.
These lenders typically use one of three models: a balance sheet model with a risk algorithm that
includes nontraditional data; a «lender - agnostic» marketplace model that connects you with a variety of lenders; or a peer - to - peer funding platform.
«Dataminr feeds are like table stakes right now: Most hedge funds need to have it,» says Santo Politi, a founder of Spark Capital, a venture capital firm that was an early backer of Twitter and has a majority stake in a two - year - old hedge fund, Tashtego, that trades on signals from social media and
other nontraditional data.
The website uses
nontraditional data sources — reports from local news outlets and social media platforms among them — to track global infectious disease activity in real time.
Earnest contends that it is able to offer low interest rates on student loan refinancing because it
uses nontraditional data to underwrite loans including savings patterns, investments, and career trajectory.
Nontraditional data can be collected from a variety of sources, including databases containing internet search histories, shopping patterns, social media activity and various other consumerrelated inputs.
For them,
nontraditional data may be used to calculate a score.
Nontraditional data «could help that consumer who has positive alternative credit get the credit they deserve,» says FICO's Joanne Gaskin.