Whitepaper · 11 min read

Better data,
better decisions.

A decision can only be as good as the data under it. This paper sets out the empirical case — from peer-reviewed and independent research — that richer, verified, higher-quality data measurably improves predictive accuracy and lending outcomes — and states the caveats in full.

Inside this whitepaper

Decision quality is bounded by data quality
Noise and blind spots both produce a decision that looks precise and isn’t.
Better data is independently predictive
Berg et al.: simple alternative data adds 5.3 points of AUC over the bureau score alone.
Richer data and better models
FinRegLab: more approvals and fewer approved defaulters at the same risk cut-off.
The honest reading
The caveats stated in full — external validity, fair-lending risk, and what AUC does and doesn’t tell you.

What the evidence shows

+5.3pp
AUC gain from adding alternative data
+0.020
ROC-AUC lift: cash-flow data & ML
~4%
More approvals, with ≥9% fewer defaulters
1 in 3
UK adults underserved by poor credit data

Written by

Shaun Adams
Shaun Adams
CTO, Credit Canary · June 2026
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