At A Glance
Alternative data can give lenders more context to make informed decisions, but myths about risk, complexity and implementation can get in the way. In this Ask the Expert conversation, Vince Nowicki, Chief Lending Officer at Mission Federal Credit Union, joins Experian’s David Elmore to challenge some of those assumptions and share what Mission Federal learned by putting alternative data into practice.Alternative data has been part of the lending conversation for years. Yet myths about what it takes to put it into practice can still create hesitation.
Does alternative data mean changing your credit strategy? Is sticking with what you know always the safer choice? And does getting started require a major transformation?
In this episode of Ask the Expert, Experian’s Vice President of Fintech Sales David Elmore sits down with Vince Nowicki, Chief Lending Officer at Mission Federal Credit Union, to separate myth from reality. Nowicki shares what Mission Federal learned from its own experience, including a few surprises along the way. Watch the full conversation to hear which assumptions Nowicki challenges, what surprised him about Mission Federal’s experience and what proved harder than the technology itself.
Myth: Alternative data means starting over
For some lenders, adopting alternative data can sound like rethinking the way credit decisions are made. But that wasn’t Mission Federal’s experience.
The goal wasn’t to replace traditional credit data or change the credit union’s lending philosophy. It was to add context when a member’s traditional credit file didn’t tell the whole story.
The biggest myth is that alternative data means replacing everything that you do. And it doesn’t.
Mission Federal Credit UnionVince Nowicki, Chief Lending Officer
In other words, alternative data could add another layer of insight to Mission Federal’s established lending approach.
Myth: Waiting avoids risk
Lenders are careful for good reason. Managing risk is part of the job.
But Nowicki raises another side of the risk question: What can lenders miss by waiting?
Additional data can provide lenders with more context alongside the information available in a traditional credit file. For Nowicki, that raises a bigger question: could caution also mean missing opportunities to serve more members and build deeper relationships?
For institutions focused on growth, standing still can have a cost too.
Myth: You must go big
Nowicki’s advice for lenders considering alternative data is much simpler: start small.
Instead of trying to change lending across the organization, start with a business problem. Maybe decisions are taking too long. Maybe too many applications need manual review. Or perhaps the organization wants to improve consistency or find new opportunities for growth.
Then narrow the focus.
Pick that one product, that one pain point, and go after that one KPI.
Mission Federal Credit UnionVince Nowicki, Chief Lending Officer
That gives lenders a way to learn before expanding further.
It also creates room to address the other pieces that come with change. For Mission Federal, that included getting stakeholders on board, deciding where automation belongs and building governance around the approach.
Watch the full episode of this Ask the Expert to hear Nowicki tell the story firsthand, including what surprised him about implementation, the challenge that took longer than expected and what he would tell another lender thinking about taking the first step.
Ready to learn more about alternative data?
We help lenders bring alternative credit data into existing strategies to gain more context and make more informed decisions. With broader consumer insights, we can help you uncover new opportunities for growth while continuing to manage risk with confidence.
About our experts
David Elmore
Vice President of Fintech Sales, Experian
David Elmore leads a team of fintech sales professionals at Experian focused on helping fintech organizations drive responsible, scalable growth through data-driven analytics and decisioning. With more than 20 years in financial services, he brings deep expertise in applying traditional and alternative data across the customer lifecycle. David and his team partner with fintech leaders to navigate opportunities across acquisition, underwriting, portfolio management, and collections, balancing innovation, risk and trust.
Vince Nowicki
Chief Lending Officer, Mission Federal Credit Union
Vince Nowicki has more than 33 years of experience in consumer and mortgage lending, including retail, wholesale, commercial and bulk acquisitions. He joined Mission Fed in April 2011 and currently serves as Chief Lending Officer, overseeing Residential and Commercial Mortgage Originations, Loan Servicing, Secondary Marketing, Consumer Lending, Indirect Auto Lending, Auto Leasing, and Insurance Services. Through Mission Fed’s CUSO, Vince helped establish LiveSmart Escrow, a captive escrow company serving Mission Fed’s members and partners, and he currently serves on its board. Vince also serves as Vice Chair of the Board of Trustees for the San Diego Center for Children.
