Buckley Webcast: Flirting with alternatives — Opportunities and challenges created by alternative data, modeling, and technology
Lenders, regulators, and legislators are showing significant interest in how alternative data, sophisticated modeling, and techniques such as machine learning currently are being used in consumer lending and ways they may be used in the future. Innovation holds the potential to expand access to credit and the accuracy of loan approval and pricing. However, some regulators and legislators — including Sen. Elizabeth Warren and other presidential candidates — have expressed concerns about the potential for fair lending consequences stemming from the integration of technology into the decision-making process.
Buckley attorneys Jonice Gray Tucker, Kari Hall, and Caroline Stapleton discussed the increasingly complex relationship between lending, technology, and anti-discrimination laws. Panelists discussed the ways in which advances in modeling and the availability of alternative data are revolutionizing lending; takeaways from recent lawsuits, regulatory guidance, and legislative inquiries; observations about the way in which regulators may deal with the challenges; and opportunities posed by innovation in our rapidly evolving world.