A Comparative Analysis of Regulatory Sandbox Success in Adopting Alternative Data Credit Models (UK vs EU vs US)

This study examines how different financial regulatory environments support the use of alternative data in credit scoring models. It compares the United Kingdom (UK), the European Union (EU), Singapore, and Canada, focusing on their treatment of open banking, data consent, explainability standards, and sandbox success rates. The goal is to identify the most favorable jurisdiction for emerging fintechs offering credit rating services. The findings show that the UK provides the most balanced environment for innovation and compliance, while the EU presents the strictest regulatory conditions but the strongest compliance precedent.