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Credit Where It Must Be Due

Credit where credit is due — and it’s always due, it seems. Every month. The debt that has been racked up domestically has been astronomical, at roughly $1 trillion. The age of credit is not new and extends back more than a century.

The credit card is roughly half that age, and now the credit arena is evolving to be more transactional beyond its roots as a revolving credit line. The evolution of the model means that the data collected to suss out creditworthiness comes from a variety of sources, from Big Data to social media.

The newer credit models are also extending across borders and technology as FinTech firms bring a tailored approach to extending credit on a consumer-by-consumer basis.

This all raises a slew of questions for traditional lenders. How do they compete? And where? The onus is on those banks and other lenders to evolve, too. But where there is threat, there is also opportunity.

Join the discussion over the future of credit at the Innovation Project panel.

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