Effect Comparison and Ethical Issues of Alternative Data in Credit Scoring

DOI

10.2991/978-94-6239-801-6_131How to use a DOI?

Keywords

Alternative Data; Credit Score; FinTech

Abstract

The traditional credit reporting system has obvious limitations in covering people and updating data. A large number of people who lack traditional credit records find it difficult to obtain financial services and the rise of alternative data provides a new way for credit scoring. This paper summarizes the differences between the application scenarios and effects of personal data and business process data in credit scoring. Through literature comparison, it is found that the two types of data present a complementary relationship in credit evaluation. Personal data is good at capturing individual behavior characteristics, especially suitable for the credit evaluation of borrowers who lack traditional financial records. Business process data reflects the actual operating conditions of enterprises. It is authentic and objective and has unique advantages in enterprise credit evaluation and monitoring. The combination of the two can build a more comprehensive credit scoring system. However, when applying alternative data, people should also pay attention to the ethical issues caused by it, such as privacy protection, algorithm fairness and data governance. In the future, people need to find a balance between technology and ethics, promote data fusion and improve the data governance framework.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Leyi Shi
PY  - 2026
DA  - 2026/10/23
TI  - Effect Comparison and Ethical Issues of Alternative Data in Credit Scoring
BT  - Proceedings of the 2026 2nd International Conference on Financial Innovation and Marketing Management (FIMM 2026)
PB  - Atlantis Press
SP  - 1264
EP  - 1270
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-801-6_131
DO  - 10.2991/978-94-6239-801-6_131
ID  - Shi2026
ER  -