This week, I’d like to focus on a fintech trend that’s been taking place over the past few years: fintechs using cash flow underwriting to make it easier for people to have access to credit and build their credit history.
Enter TomoCredit, Kafene and Petal – these companies skirt the FICO system by creating new ways of determining a person’s credit worthiness by using their bank account data.
They essentially link a person’s bank account with a credit card, and establish regular payments – some do weekly payments, as a higher payment frequency helps with building a better credit score.
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