In the lending world, alternative data – Fair Credit Reporting Act-compliant information not included in a traditional credit report – has gone mainstream. What's more, it's no longer viewed as "alternative." For any financial institution looking to offer the most opportunities to its customers, maximizing use of alternative data sources – including telecommunication (telco), utility and specialty finance data – in credit assessments is essential.

This especially holds true for credit unions, which can gain the same advantages through alternative data use that larger financial institutions have long benefitted from. These include potentially extending credit more often within existing risk profiles; expanding addressable lending markets; promoting fair and equitable lending and consumer financial health; and building member loyalty and lifetime value.