PayPod Podcast: How Alternative Data Transforms Credit Risk – with John Gordon

Why Credit Scores Are No Longer Enough

As John shares in the episode, the credit landscape is rapidly evolving. With millions of consumers left out or misrepresented by traditional credit scoring models, financial institutions are turning to alternative data—like ACH history, bank account behavior, and fraud signals—to close the gap.

Discover how using ACH history, bank account behavior, and fraud signals is giving lenders a clearer, fairer view of consumer creditworthiness in today’s fast-changing financial landscape.

With fraud getting more sophisticated and prevention evolving, we explore how underserved populations benefit from better data, and why ACH validation is becoming a fintech essential.

“Credit scores give you one piece of the puzzle,” John explains, “but they often miss the full financial picture. With alternative data, lenders can gain a much clearer, real-time view of someone’s ability and willingness to repay.”

Topics Covered:

• Credit scores vs. alternative data

• ACH validation and fraud detection

• Bank account behavior as a risk indicator

• Financial inclusion and non-prime consumers

• Buy Now, Pay Later and missing data in bureaus

• Emerging trends in data consortiums and fintech regulation