Automation is not an entirely new concept in banking services. For some time, financial institutions have relied on artificial intelligence (Al) to detect suspicious card activity. Further, many of these entities use loan automation systems to underwrite credit facilities. Loan servicing remains riddled with slow decision times and data management issues that create unwanted opacity for bankers and borrowers alike.

Because such service providers will handle sensitive data and information regarding your clients, it's vital that you identify a service provider that you can trust to keep your data safe and secure. To help you navigate this unfamiliar sector, here's a quick guide highlighting what you should look for in a CaaS provider.

The data lenders utilize to determine creditworthiness is regulated by the Fair Credit Reporting Act (FCRA-regulated data). With alternative credit data not conventionally included in most credit reporting, it must meet the FCRA regulations of being correctable, displayable, and disputable. With more lenders switching from traditional to alternative credit data, it's essential to learn the available options.