Discussion paper

The Emergence of New Data Ecosystems in Financial Services

October 18, 2021

This paper provides insights into recent business practices in Southeast Asia and market participants’ views on policy and regulation issues. The research is based on a survey of data issuers, intermediaries, and users (primarily lenders). It focuses on understanding the role of new and alternative data and data providers in making decisions about credit. Some of these new forms of data—including social media data, cell phone data, and data generated from business processes, transactional data, online activity, and others—are being harnessed to support credit-granting decisions. Naturally, a greater number of players now collect, store, handle, and disseminate data relevant for credit-granting purposes, an area that was previously the purview of credit bureaus and credit registries.


Key conclusions: 

  • New data types and sources are rapidly becoming mainstreamed and hence are of growing importance to both new and incumbent financial intermediaries.
  • The market for credit information will continue to evolve, in particular with new analytics providers playing a role and with new data becoming available that is indicative of business performance.
  • There is a consensus among incumbents and new players that the current policy and regulatory framework for credit reporting will need to adjust to these new market circumstances. But while most survey participants agreed that the status quo is not stable or efficient, and that there will need to be changes orchestrated or supported by policy makers, opinions diverged about what the focus of those changes should be.