Question

explain in 1-2 paragraphs the ways in which the underwriting capabilities of marketplace lending platforms have been enhanced by new technology and data which are superior to that of the credit bureaus.

Answer 1

underwriting capabilities of marketplace lending platform have been enhanced by new technology and data which are superior to the credit bureau because these online lenders are having access to the borrower's spending abilities and it is also having a better consumer credit worthiness by accessing them through new methods of determining their credit scores and it is also continuously monitoring the spending strategies of the client and it is analysing the character of the client in terms of integrity and condition of repayment of their loans so it is using an integrated approach of technology in order to access the credit worthiness of the client so that it will help them in order to access the overall credit worthiness which is better than the physical meetings of the client.

These lending platform are embedded with continuous scanning of the expenditure labels and habits of the client and it is trying to formulate the overall ability of the client in order to repay the loan so it is not just analysing them through physical meetings but it is trying to access the the ability of client in order to repay the loans and it is a continuous monitoring process which is implementing the technology used, so it is providing a better access for lending platforms to judge the creditworthiness of client than the credit bureau.