Bridging the Gap with BNPL Data: A New Era of Credit Insight
Buy Now, Pay Later (BNPL) services continue to grow in popularity (see graph below). Because this activity is not captured by traditional credit reports, it’s difficult for lenders to capture a consumer's full financial picture. Integrating alternative data, such as BNPL expenses, into credit assessments provides a detailed look at debt-to-income ratios, empowering lenders to make sharper distinctions between high and low-risk borrowers. The result? Credit offers that are more finely tuned to reflect genuine financial behavior.
Envestnet | Yodlee Credit Accelerator: Harnessing BNPL Insights
Envestnet | Yodlee Credit Accelerator offers innovative tools that signal new BNPL activities and compile BNPL debt information across various providers. By alerting lenders to both the emergence of new BNPL commitments and the total BNPL debt landscape, lenders can take a more dynamic, responsive approach to credit marketing and risk assessment throughout the credit lifecycle.
These insights are based on Envestnet Yodlee’s de-identified card transaction data.
Check out our resources below to learn more about how we can provide you with tools that can support strategic lending decisions and help you extend financial inclusion to more consumers.
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