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Lending Briefing: How fintechs are redefining credit scores

  • There's a whole new class of fintech firms using bank account data to underwrite loans.
  • Consequently, the credit score is seeing pressure from all sides, as more real time options abound.
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Lending Briefing: How fintechs are redefining credit scores

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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