Financial Technology: Agencies Should Provide Clarification on Lenders' Use of Alternative Data, Statement of Lawrance L. Evans, Jr., Managing Director, Financial Markets and Community Investment, Testimony Before the Task Force on Financial Technology, Committee on Financial Services, House of Representatives [open pdf - 172KB]
From the Highlights: "Fintech refers to the use of technology and innovation to provide financial products and services. Fintech lenders are nonbank firms that operate online and may use alternative data to make loan decisions. In December 2018, GAO [Government Accountability Office] issued a report that examined fintech lenders' use of alternative data. The three fintech lending segments that GAO reviewed are personal, small business, and student loans. This statement--based on GAO's December 2018 report (GAO-19-111)-- discusses (1) fintech lenders' use of alternative data, (2) potential benefits and risks of alternative data, and (3) the extent to which federal agencies monitor lenders' use of these data. For that report, GAO reviewed literature and agency documents; analyzed relevant federal guidance; conducted interviews with agency officials and industry stakeholders; and interviewed a sample of 11 fintech lenders (selected based on size, products offered, and other factors)."
Government Accountability Office: http://www.gao.gov/