Authors: Oluwabanke Aminat Shodimu, Kofi Mensah
Abstract: The integration of big data analytics into credit scoring and lending practices has fundamentally transformed the financial services landscape in the United States. This transformation represents a paradigm shift from traditional credit assessment methods to sophisticated, data-driven approaches that leverage vast amounts of structured and unstructured data. This article examines how big data analytics is revolutionizing credit scoring processes, making them more personalized and dynamic while simultaneously raising important questions about fairness, privacy, and financial inclusion. Through comprehensive analysis of current practices, regulatory frameworks, and emerging trends, this study evaluates the multifaceted implications of big data adoption in the credit industry, highlighting both the unprecedented opportunities for improved risk assessment and the potential challenges that accompany this technological evolution.
