Global Lenders Turn to Alternative Credit Data to Detect Risk Earlier, Improve Portfolio Performance

03/06/2026

ATLANTA — LexisNexis^® Risk Solutions today released its 2025 Alternative Credit Data Impact Report, revealing how financial institutions worldwide are deepening their use of alternative credit data to strengthen risk assessment precision, manage risk earlier in the credit lifecycle and improve portfolio performance.

The global study of 875 lending and risk professionals across 10 countries shows lenders moving away from reactionary, back-end risk practices in favor of proactive, data-driven approaches that improve visibility into consumer financial health amid regulatory change, evolving borrower behavior and ongoing economic pressure.

According to the survey, a third (67%) of lenders report increased confidence in decisions supported by alternative data, while three-quarters say alternative data has improved portfolio performance, including earlier risk detection, more efficient workflows and identifying more credit-worthy consumers. At the same time, a majority of institutions say traditional data alone fails to score between 20 and 49% of applicants, highlighting the significant limitations of legacy credit models when assessing modern, complex consumer needs.

Respondents report using alternative data across acquisition, underwriting, account management and collections to identify risk earlier, reduce exposure and make more confident decisions throughout the credit lifecycle. No surveyed institutions indicated plans to expand reliance on traditional data alone.

The study also indicates that risk pressures are shifting upstream, with default prevention (40%) and credit risk assessment at origination (39%) emerging as leading challenges, reinforcing the need for more precise and real-time indicators of financial stability at the point of decision.

Looking ahead, lenders anticipate continued investment in alternative data and analytics, with 50% developing more sophisticated analytics, 49% evaluating new technology platforms and 42% increasing the weight of alternative data in existing decisioning models. These efforts reflect a broader industry shift toward end-to-end risk management built on richer, more timely insight.

“Lenders today face unprecedented complexity in assessing creditworthiness,” said Kevin King, vice president, credit risk, LexisNexis Risk Solutions. “The 2025 Alternative Credit Data Impact Report shows that what was once viewed as supplemental is now essential and central to credit risk decisioning models. Lenders that fail to integrate alternative data earlier in the credit lifecycle risk flying blind in an increasingly complex environment. By bringing richer insights into decision-making earlier, lenders can sharpen risk precision, improve portfolio performance and responsibly expand access to credit for consumers who have historically had limited coverage in traditional credit scores and reports.”

Methodology: LexisNexis^® Risk Solutions partnered with Datos Insights to conduct a global online survey of 875 respondents across 10 countries within banks, credit unions and non-bank lenders. Respondents held roles in lending operations, risk management or related oversight positions. The research examines lender challenges, scoring gaps, alternative data adoption trends and measurable business outcomes.

Download the 2025 Alternative Credit Data Impact Report here.

About LexisNexis Risk Solutions
LexisNexis® Risk Solutions leverages the power of data, advanced analytics platforms and integrated AI solutions to provide insights that help businesses across multiple industries and governmental entities reduce risk and improve decisions to benefit people around the globe. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based analytics and decision tools for professional and business customers. For more information, please visit LexisNexis Risk Solutions and RELX.