Whose data it is
Credit data ownership: what lending software terms say
Updated
Whether a lender can license its repayment history starts with the agreements of the platforms that keep it. These are the answers 12 credit software vendors give in their own words.
Six vendors say the customer owns it
6 agreements state ownership outright. Esker's terms say the customer owns all rights, title and interest in all Documents and the information contained in them; Growfin's say "We do not claim ownership over such Customer Data"; LoanPro's say Customer Data remains the property of the Customer, subject to the rights of use in its terms and privacy policy.
The board reads the other 6 as not stated on ownership. That is not the same as the vendor owning the data, but it is a gap to close in writing before a buyer relies on it.
Ownership and a reuse right can sit side by side
LoanPro is the plainest case on the board: its terms leave Customer Data with the customer, while its privacy policy says de-identified data may be retained and used to improve its products, and its end user terms give it a perpetual right to collect, aggregate, use, distribute and sell Usage Data. Creditsafe's terms grant it a perpetual licence to use any data a customer uploads for analytical purposes.
Training clauses are rarer, and blunter
3 vendors write a training right into their documents and 1 rules it out with exceptions; the board reads 8 as not stated on training. Kolleno's exceptions are prior written consent and data that is aggregated and anonymised so the customer cannot be identified.
Before a lender talks to a buyer
- Find the ownership clause, or ask the vendor to confirm in writing.
- List every right the vendor keeps over aggregated, de-identified or usage data.
- Take the export the agreement allows while the contract is still running.