Based on research by Jung Youn Lee, Eric Anderson (Northwestern) and Joonhyuk Yang (Notre Dame)

Key findings:

• An alternative credit score based on retail shopping data helps borrowers lacking a traditional credit history get approved for a credit card.
• Retail-based credit scores can lower default rates if lenders keep approval volumes steady.
• Based on their own customer data, lenders can build tools that generate alternative credit scores from borrowers’ shopping patterns.
   

Over a billion people worldwide can’t access credit cards or loans because a traditional credit score stands in their way. Without a formal borrowing history, banks view them as unreliable and risky. To expand access, lenders have experimented with other ways to assess borrowers, including on-time utility or mobile payments.

Previous research from Rice Business assistant professor of marketing Jung Youn Lee has shown that grocery store receipts can promote upward mobility and expand access to credit. Her new study builds on that research, analyzing broader consumer spending data to reveal how lenders can use it to create alternative credit scores for people with no credit history.

Forthcoming in the Journal of Marketing Research, the study finds that when lenders use data from daily purchases — at grocery, pharmacy, and home improvement stores — credit card approval rates rise. The findings give lenders a powerful new tool to connect the unbanked to credit, laying the foundation for long-term financial security and stronger local economies.

Turning Shopping Habits into Credit Data

To test the impact of retail transaction data on credit card approval rates, the researchers partnered with a Peruvian company that owns both retail businesses and a credit card issuer. In Peru, only 22% of people report borrowing money from a formal financial institution or using a mobile money account.

The team combined three sets of data: credit card applications from the company, loyalty card transactions, and individuals’ credit histories from Peru’s financial regulatory authority. The company’s point-of-sale data included the types of items purchased, how customers paid, and whether they bought sale items.

“The key takeaway is that we can create a new kind of credit score for people who lack traditional credit histories, using their retail shopping behavior to expand access to credit,” Lee says.

The final sample included 46,039 credit card applicants who had received a single credit decision, had no delinquent loans, and made at least one purchase between January 2021 and May 2022. Of these, 62% had a credit history and 38% did not.

Using this data, the researchers built an algorithm that generated credit scores based on retail purchases and predicted repayment behavior in the six months following the application. They then simulated credit card approval decisions.

Retail Scores Boost Approvals, Reduce Defaults

The researchers found that using retail purchase data to build credit scores for people without traditional credit histories significantly increased their chances of approval. Certain shopping behaviors — such as seeking out sale items — were linked to greater reliability as borrowers.

For lenders using a fixed credit score threshold, approval rates rose from 15.5% to 47.8%. Lenders basing decisions on a target loan default rate also saw approvals rise, from 15.6% to 31.3%.

“The key takeaway is that we can create a new kind of credit score for people who lack traditional credit histories, using their retail shopping behavior to expand access to credit,” Lee says. “This approach benefits unbanked applicants regardless of a lender’s specific goals — though the size of the benefit may vary.”

Applicants without credit histories who were approved using the retail-based credit score were also more likely to repay their loans, indicating genuine creditworthiness. Among first-time borrowers, the default rate dropped from 4.74% to 3.31% when lenders incorporated retail data into their decisions and kept approval rates constant.

For applicants with existing credit histories, the opposite was true: approval rates fell slightly, from 87.5% to 84.5%, as the new model more effectively screened out high-risk applicants.

Expanding Access, Managing Risk

The study offers clear takeaways for banks and credit card companies. Lenders who want to approve more applications without taking on too much risk can use parts of the researchers’ model to design their own credit scoring tools based on customers’ shopping habits.

Still, Lee says, the process must be transparent. Consumers should know how their spending data might be used and decide for themselves whether the potential benefits outweigh privacy concerns. That means lenders must clearly communicate how data is collected, stored, and protected—and ensure customers can opt in with informed consent.

Banks should also keep a close eye on first-time borrowers to make sure they’re using credit responsibly. “Proactive customer management is crucial,” Lee says. That might mean starting people off with lower credit limits and raising them gradually as they demonstrate good repayment behavior.

This approach can also discourage people from trying to “game the system” by changing their spending patterns temporarily to boost their retail-based credit score. Lenders can design their models to detect that kind of behavior, too.

The Future of Credit

One risk of using retail data is that lenders might unintentionally reject applicants who would have qualified under traditional criteria — say, because of one unusual purchase. Lee says banks can fine-tune their models to minimize those errors.

She also notes that the same approach could eventually be used for other types of loans, such as mortgages or auto loans. Combined with her earlier research showing that grocery purchase data can predict defaults, the findings strengthen the case that shopping behavior can reliably signal creditworthiness.

“If you tend to buy sale items, you’re more likely to be a good borrower. Or if you often buy healthy food, you’re probably more creditworthy,” Lee explains. “This idea can be applied broadly, but models should still be customized for different situations.”

By Deborah Lynn Blumberg

Anderson, Lee, and Yang. “Who Benefits from Alternative Data for Credit Scoring? Evidence from Peru.” Forthcoming in Journal of Marketing Research (2025). https://doi.org/10.1177/00222437251360996

The right internship can change everything. It’s often the first real test of whether the career you’ve imagined feels right in practice and the first big step toward where you want to go.

At Rice Business, we make sure students are ready when opportunity shows up. 

Our MBA Career Seminar gives Full-Time MBA students the tools, strategies and confidence to take charge of their internship search. With one-on-one support from the Career Development Office, students learn to tell their story, build connections and pursue roles that fit their goals.

Why We Built the Rice Business Career Seminar

Recruiting season can feel like a full-time job. We designed this seminar to make it more doable, structured, and grounded in real experience, offering students more support in an increasingly dynamic and competitive environment.

“The Career Seminar has given students a dedicated space to ask questions and actively work on their recruiting strategy,” says Mariella De Alba Ortiz, a senior associate director on the CDO team. “We’ve seen them fully engaged — participating in discussions, practicing outreach and exploring new resources that strengthen their search. It’s been exciting to watch them gain confidence and clarity as they shape their individual recruiting paths.”

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Our CDO advisors take into consideration feedback from both Rice Business student leaders and top employers alike to curate a well-structured curriculum that prepares students to stand out during recruitment.

From the very start of their first semester, students gain both guidance and accountability. The seminar helps them stay on track with key milestones while developing the skills that matter long after the MBA: communication, adaptability and self-awareness.

Inside the Seminar 

Designed to give students both structure and confidence, the seminar combines tactical skill-building with real-world practice. Students refine their personal brand, master networking and interviewing, and build a sustainable recruiting strategy tailored to their goals — all while learning how to keep momentum through changing plans.

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Here’s a look at some of what’s covered:

• Networking in Action: Coffee Chats
• Recruiting Roadmap: Timelines, Targets and Strategy
• Personal Brand & Value Proposition
• Behavioral Interviews I: STAR Stories
• Behavioral Interviews II: Alumni Panel and Fish Bowl
• Communicating with Recruiters and Evaluating Offers
• Sustaining Your Search

Together, the sessions form a complete roadmap for internship recruiting, helping students sharpen their professional identity, connect confidently with employers and approach interviews and offers with clarity.

Who It’s For

The Career Seminar was designed specifically for our Full-Time MBA students, who face a fast-paced recruiting cycle in their first semester. These sessions provide targeted, timely guidance just when it’s needed most.

Our working professional programs also receive robust career resources, but this hands-on, semester-long series is currently exclusive to full-time students. Because they step away from their careers during the two-year program, we provide Full-Time MBAs with this guidance to help them reenter the workforce with valuable internship experience.

Recruiting at Rice Business

At Rice Business, students don’t go through recruiting alone. The Career Seminar is built into the experience — not as an optional add-on, but as a core part of what makes our MBA program distinctive.

Every step is designed to help students turn preparation into confidence, and confidence into results. Learn more about companies that recruit at Rice Business.

Explore the Rice MBA 

If you’re considering pursuing an MBA, you may be wondering: What does it take to get into one of the top business schools?

There’s no one way to submit a perfect MBA application, but there are key qualities that most successful candidates share — and that top admissions committees search for. Here are some tips from the Rice Business admissions team on curating a strong application and standing out to top-ranked business schools.

How To Stand Out

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Top schools aren’t just looking for applications with all the boxes checked off. They want to see candidates going above and beyond — demonstrating leadership, passion and vision for the future.

Here’s what can really set your Rice MBA application apart: 

• Interview Prep. If you’re invited to interview, it means the committee sees potential in you. Use this opportunity to reinforce your goals — displaying confidence, clarity and purpose behind your decision for pursuing an MBA.
• Professional Certifications. Credentials like the CFA and PMP can strengthen your profile, especially if they align with your career goals or show technical expertise.
• Career Progression. Clear, steady advancement shows commitment, capability and a track record of results — evidence that you’re ready to take the next leap in your career.
• Demonstrated Leadership. Through community involvement, entrepreneurship or mentorship, strong leadership is a universal differentiator.
• Quantitative Readiness. Courses like accounting, statistics or data analytics can demonstrate preparedness, especially if you waive test scores.
• Strong GPA. A high undergraduate GPA shows you can handle the academic rigor of graduate-level coursework. If your GPA is lower, other elements like test scores or professional achievements can help balance it out.
• GMAT, GRE or EA. Even when tests are optional, submitting a competitive test score can boost your application, as it signals readiness for the MBA’s analytical demands.
• Authenticity. Be yourself! Admissions teams want to get to know the real you — your goals, your story and what drives you to pursue an MBA.

If you’re aiming for Rice Business or another top program, make sure to strategically display your strengths in your MBA application to show your commitment.
 

MBA Application Basics

While every MBA program has its own criteria, these core components are expected by most top-tier Full-Time MBA programs, including Rice Business:

• Bachelor’s Degree. All accredited MBA programs require a completed undergraduate degree from a recognized institution.
• Professional Experience. Most students bring two to five years of work experience. Schools aren’t just looking at what you did — they want to see your career progression and impact.
• Resume. A clear, concise resume highlights your professional trajectory, achievements and extracurricular involvement. Think of it as a snapshot of your career story.
• Letters of Recommendation. Strong recommendations from supervisors or mentors provide a third-party validation of your abilities. The best letters share concrete examples of your teamwork, leadership and problem-solving skills.
• Personal Essays. Essays are your chance to tell your story: why you want an MBA now and why that school is right for you. Authenticity matters more than perfection.

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For professional applicants looking to apply to a part-time program like the Rice Professional MBA, Hybrid MBA or Executive MBA, requirements can vary. For example, an executive program may prioritize work experience over test scores or education history. Be sure to check the Rice MBA application requirements for your specific program of interest ahead of time.

If you’re considering graduate school, it’s a good idea to start preparing these materials early — no matter when you intend on applying.

Missing Something? Here’s How To Bolster Your Application

Don’t panic if your profile isn’t perfect — many admitted students don’t check every box. What matters is how you tell your story and balance your strengths.

For example, if your GPA isn’t as strong as you’d like it to be, consider using essays to highlight your professional achievements or quantitative experience. If you have less professional experience, you might emphasize leadership in volunteer roles or entrepreneurial ventures. Many early-career applicants are still competitive if they demonstrate leadership potential, internships or entrepreneurial experience.

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Our admissions committee, like many others, evaluates applicants holistically. Top programs are looking for evidence of potential and passion, not perfection. Show them how you’ve grown, what you’ve learned and where you’re headed.

Looking for More Application Tips?

If you’re looking for more insights on how to present your best self, check out our guide on MBA application tips — including strategies for crafting your story, preparing for interviews and getting involved in the community early.

Curious if you belong at Rice? Contact our admissions team or attend an event to learn more about our top-ranked MBA programs.

Explore the Rice MBA 

Peter Rodriguez, the Houston Endowment Dean of the Jones Graduate School of Business and the Virani Undergraduate School of Business at Rice University, has been named the 2025 Poets&Quants Dean of the Year, a national honor recognizing visionary leadership and outstanding contributions to business education. The award was presented last night at Poets&Quants’ annual awards ceremony in Toronto.

Since his appointment as dean in 2016, Rodriguez has guided Rice Business through a period of extraordinary growth and innovation. Under his leadership, the school has grown in enrollment, faculty and staff. He doubled the MBA enrollment and launched new programs, including the university’s first online graduate degree program, MBA@Rice, as well as the hybrid MBA and the undergraduate business major at Rice. He also ushered in a new name for the undergraduate programs in honor of Houston community and business leaders, Asha Virani ’89 and Farid Virani.

This past spring, the Rice Business alumni network grew to more than 10,000. To support the school’s growing programs and student body, Rodriguez is overseeing the development of a new 112,000-square-foot facility adjacent to McNair Hall. Scheduled to open in 2026, the building will serve as a hub for business education, innovation and community engagement in Houston and beyond.

“Peter Rodriguez’s optimistic, forward-looking leadership has elevated Rice Business among the nation’s top business schools and opened the opportunity of a Rice Business degree to undergraduate and many more graduate students,” said Rice University Provost Amy Dittmar. “His vision for accessible, high-impact business education continues to inspire faculty, students and alumni — and this recognition from Poets&Quants is well deserved.”

In his nearly 10-year tenure as dean, Rodriguez has seen Rice Business climb in the national rankings, including the No. 3 spot for Best MBA in Finance from The Princeton Review. In recent years, Rice Business has also been ranked No. 5 for Top Online MBA program (2025) by The Princeton Review and No. 1 MBA in Texas (based on global rankings) by the Financial Times (2023-2024). In addition, Rice Business has been ranked the top graduate school for entrepreneurship by The Princeton Review and Entrepreneur magazine for the last six years.

Rodriguez joined Rice Business following more than a decade at the Darden School of Business at the University of Virginia, where he served as senior associate dean for degree programs and chief diversity officer. He holds a doctorate in economics from Princeton University.

For Houston native Carlos Macias, earning a Master of Accounting (MAcc) at Rice University wasn’t just a hometown advantage — it was a smart move toward a successful career in finance.
Drawn by Rice Business’ strong reputation and close-knit community, Carlos knew the MAcc program was the right fit. In this collaborative environment, students challenge, support and inspire one another, bringing fresh perspectives to every class.

What sets the Rice Master of Accounting program apart? For Candis Damtse, it was the welcoming community and the accessibility of the faculty that made her feel like she truly belonged. Beyond rigorous coursework and career development opportunities, Rice Business creates space for students to connect — with social events like Partio, the beloved “party on the patio” tradition at McNair Hall.

Coming from an economics background, Chloe Kinnebrew didn’t know exactly what to expect from a Master of Accounting (MAcc) program. At Rice Business, she found a welcoming community, a buildable curriculum and career resources that supported her every step of the way.

Designed for students from any academic background, the 10-month Rice MAcc follows a lockstep, cohort-based model that builds tight-knit, lasting connections. Outside the classroom, career development opportunities — from recruiting events to networking sessions — help students get exactly where they want to go.

No matter the industry or economy, accounting is the backbone of business. Companies rely on accurate financial information to make decisions, maintain compliance, and build trust with investors and customers. 

That makes accountants essential — and consistently in demand.

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“Everyone needs an accountant,” says MAcc student Josue Gonzalez. “It’s one of those jobs that’s unlikely to go anywhere anytime soon. That’s why for me, the MAcc was the perfect mix of passion and opportunity.”

What sets accounting apart from other career paths is how its versatility grows over time. While some fields force you into narrower lanes as you advance, accounting expertise becomes broader and more powerful the longer you practice.

Immediate Results: Job Placement You Can Count On

For multiple consecutive years, our Master of Accounting program has achieved a 100% job placement rate within three months of graduation.

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That record of success comes from more than academics. It’s fueled by career coaching, recruiter relationships and a curriculum aligned with industry needs. 

“What really stood out to me was how much exposure I got to the Big Four companies,” says alumna Chloe Kinnebrew. “Throughout the program, there were so many recruiting events, which really helped my search for a job in auditing.” 
 

Where MAcc Graduates Go

Most recruiting begins at the Big Four — Deloitte, EY, KPMG, PwC — in audit or tax. These firms provide unmatched training and exposure. But Rice alumni also take their skills into industries like corporate accounting and finance, consulting, investment banking, nonprofits and government, and entrepreneurial ventures.

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After landing jobs, Rice MAcc alumni also grow into leadership. Graduates have become CEOs, CFOs, audit partners, executive vice presidents, controllers and managing directors. Their careers show how a MAcc can be both a launchpad and a ladder.

“I’ve seen multiple people go through the MAcc program and end up super successful in their business careers,” says alumnus Carlos Macias. “That was a sign that this was the right step for me and a good way to start my career.”

A Future You Can Trust

Certainty is hard to find in today’s economy. But with a Rice MAcc, you gain both stability and flexibility: a degree that helps you land your first job and sets you up for the roles you’ll want five, ten or twenty years from now.  

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“The MAcc degree opened the door to public accounting, enabled me to succeed there and helped me pivot into corporate finance. To me, the MAcc degree’s greatest strength is that it combines technical knowledge and development of soft skills that allow us to succeed in whatever career path we choose to pursue.” —Matthew Hrncir, Rice MAcc Alum

Ready to explore the next step? 

Learn more about Rice MAcc admissions or connect with our team to see if this program is the right fit for you. 

Explore the Rice MAcc