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Alternative lending includes materially different credit structures. Separate consumer installment, mortgage, merchant, invoice and other business-finance cohorts. Institution type alone is not a risk label.

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Financial-risk measures

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Public benchmark sources

CMHC’s mortgage industry report provides mortgage-market comparisons by reported lender populations. Use only the applicable population and period. It does not establish a loss benchmark for MCA, invoice finance or unsecured installment loans. Use the business financing pages for product-specific definitions. An observed higher-risk borrower mix must be controlled before comparing a non-bank portfolio with a mainstream bank book.

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AMLOK evaluation

Stratify evaluation by origination channel, product, term and evidence completeness. Include later vintages and, where feasible, an originator excluded from model development. Measure calibration and false-positive burden on the lender’s actual eligible population. Score contract interpretation and payment reconciliation before credit prediction. Treat refinancing, restructuring and prepayment separately from successful full-term repayment. For Signal, compare alert lead time and confirmed changes at the same observation horizon. Apply the common evaluation design; do not assign a universal alternative-lender default rate.