How Fintech Is Using Behavioral Data for Lending Decisions

Lucas and Luna explore how fintech lenders are incorporating behavioral data—like how you type, scroll, or fill out forms—into credit decisions. They examine the case of Upstart, which uses over 1,500 data points including education and employment history, and contrast it with alternative data pioneer LenddoEFL, which analyzes smartphone usage patterns. The hosts discuss the promise of expanding credit access to thin-file borrowers, the risks of algorithmic bias, and the regulatory questions these models raise. They also consider whether behavioral scoring could replace or supplement traditional FICO scores. A specific focus: the May 2026 Fed study showing that alternative data models approved 27% more borrowers without increasing default rates above traditional models. A quick, sincere donation appeal for the ad-free show is woven in near the end. #Fintech #Lending #BehavioralData #CreditScoring #Upstart #LenddoEFL #AlternativeData #AI #MachineLearning #FinancialInclusion #ConsumerLending #FICO #Regulation #Podcast #Business #Technology #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo