At a recent U.S. Chamber of Commerce event, TransUnion’s CEO Chris Cartwright spoke to David Hirschmann, President and CEO of the Center for Capital Markets Competitiveness about how data can be used to expand access to credit and create a more financially inclusive world.
An absence of data causes the credit reporting ecosystem to miss out on a full picture of consumers. This disproportionally affects consumers from disadvantaged populations who lack access to credit, including veterans or immigrants, as well as younger consumers who are just starting to build their credit profile. Forty-five million Americans are not in the formal credit system, according to TransUnion.
Cartwright shared how TransUnion is looking to bridge these gaps and use data to pioneer innovative ways to give more people access to credit:
The event also featured experts who explained AI’s role in financial inclusion. The panel consisted of Sammy Assefa, Head of AI and Machine Learning at the U.S. Bank; Raghu Kulkarni, VP of Data Science at Discover Financial Services; and Brian Stucky, Team Lead of Ethical AI at Rocket Central. The experts emphasized how data, when used accurately and efficiently, can expand credit access for “credit-invisible” populations, those who have good credit history, but wouldn’t normally qualify for credit.
In addition to considering this data when evaluating credit scores, TransUnion also supports policy changes that would enhance credit building opportunities for Americans, including the reporting of rent payment information.
“We would love to partner and help advance these legislative efforts because it’s a great way to both strengthen the economy and allow fuller and fairer participation in the modern credit system,” Cartwright said.
To watch the entire event, click here.