https://msucerl.org/cmse101/tags/fintech/Recent content in Fintech on AI and Society CourseHugoen-usThu, 21 May 2026 00:00:00 +0000https://msucerl.org/cmse101/use-cases/10-1-alternative-data-credit-scoring/Thu, 21 May 2026 00:00:00 +0000https://msucerl.org/cmse101/use-cases/10-1-alternative-data-credit-scoring/<h1 id="alternative-data-credit-scoring">Alternative Data Credit Scoring</h1> <h2 id="context--systems-architecture">Context &amp; Systems Architecture</h2> <p>Traditional credit underwriting frameworks (such as FICO scores) rely on structured financial histories, including repayment logs, existing debt levels, and credit card histories. However, across the fintech and subprime lending landscape, algorithmic credit models have emerged that bypass these traditional guardrails. FinTech platforms and neo-banks utilize non-traditional machine learning classifiers to score the creditworthiness of &ldquo;credit invisible&rdquo; or underbanked individuals. These systems ingest digital behavior footprints to predict the statistical probability of loan default, deeply complicating standard consumer protection laws.</p>