University of Twente Student Theses
As of Friday, 8 August 2025, the current Student Theses repository is no longer available for thesis uploads. A new Student Theses repository will be available starting Friday, 15 August 2025.
Exploring the Evolution and Impact of Credit Scoring in the European Union: An Analysis of Alternative Data, Individual Consumer Data, and Regulatory Frameworks
Müller, M.M. (2023) Exploring the Evolution and Impact of Credit Scoring in the European Union: An Analysis of Alternative Data, Individual Consumer Data, and Regulatory Frameworks.
|
PDF
371kB |
| Abstract: | This study aims to explore the potential of using alternative data, such as social media profiles and web browsing history, to assess the credit risk of individuals with minimal or no credit history. The study aims to address the existing knowledge gap and provide insights for policymakers, financial institutions, and consumers in the context of the usage of alternative data sources in the credit scoring landscape. The paper will also discuss the role of Credit Rating Agencies (CRAs) in the European Union (EU), with a focus on the structure of credit reporting agencies. The analysis will highlight how we can divide the types of Credit Rating Agencies depending on the information they collect and process. Furthermore, the paper will examine the current laws related to credit risk scoring in the EU, including the General Data Protection Regulation (GDPR), the Consumer Credit Directive, and the Proposal for a Regulation on Artificial Intelligence (AI). The study will analyze how credit risk scoring, particularly when utilizing alternative data sources, fits within in the current legislative context, and identify potential shortcomings in EU legislation in protecting consumers against using alternative data in credit scoring. By investigating the potential findings and comparisons of alternative data sources in credit risk assessment, this paper aims to contribute to the ongoing discussions on credit scoring transparency, consumer protection, and the promotion of a stable and equitable financial system in the European Union. |
| Item Type: | Essay (Bachelor) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science, 86 law |
| Programme: | International Business Administration BSc (50952) |
| Link to this item: | https://purl.utwente.nl/essays/95276 |
| Export this item as: | BibTeX EndNote HTML Citation Reference Manager |
Show download statistics for this publication
Show download statistics for this publicationRepository Staff Only: item control page