How Payoff is shifting the conversation about consumer debt to financial wellness
Scott Saunders is CEO and Founder of Payoff
What is Payoff?[caption id="attachment_6396" align="alignright" width="202"] Scott Saunders, Payoff[/caption] Payoff is a leading financial wellness and empowerment company leveraging technology, science and personalization. We are working to change the status quo in consumer finance and help people cross the chasm from borrowers to savers, investors, and givers. We’re excited to have support and significant industry leadership from our impressive Board of Directors, including: Joe Saunders (former Visa CEO), Arianna Huffington (Huffington Post Founder), Mohamed El-Erian (former Pimco CEO), Sean Park (Anthemis Group Founder) and Jim Lane (former Goldman Sachs partner).
Why do you believe it's a "next generation financial company"?By taking a more personal and holistic wellness approach to their finances with Payoff, our Members gain insights to connect their behaviors, feelings and aspirations to an empowered path forward. For example, at Payoff we:
- Use science to empower our Members: Our Chief Scientist, Dr. Galen Buckwalter, helped to develop the matching algorithms at eHarmony as their Chief Scientist Officer, and he’s bringing psychology to finance, ultimately facilitating positive behavior change and helping people make better financial decisions. Payoff has taken the hundreds of questions you might answer in a typical psychometric assessment and compressed them into a three-minute “gamified” online version that gauges your financial personality. Our assessment provides insights into “why” you spend vs. just focusing on “what” you spend (information you can already get from traditional credit reports).
- Treat underwriting like a first date: Payoff doesn’t want to issue multiple loans to one person. Instead we want to understand people’s levels of motivation to really pay off their debt. As a result, Payoff has a significantly lower default rate than the industry average of 4%-5%. We’re also actively researching and building resources and tools to support motivated Members who don’t currently qualify for a Payoff Loan.
- Offer Member Advocates: Based in Payoff’s Costa Mesa, Calif., headquarters, our Member Advocates provide personal support, guidance and a listening ear to our Members via a call, email or online chat. 86% of Payoff Members have opted in for 90-day check-ins following the initial welcome call from their Member Advocate.
- Are the first marketplace lender to provide Members with free FICO® Score updates: Starting this month, Payoff will provide Members with complimentary monthly access to their FICO® Score (which are used in more than 90% of lending decisions in the U.S.). Members will see trending information impacting their score and educational resources. In a recent study, Members who paid off $5,000 in credit card balances using a Payoff Loan saw an average increase in their FICO® Score of 40 points.
- Are a growing community: With a Net Promoter Score (NPS) of 80, Payoff Members are showing their desire to join our financial wellness movement and help us continue to build an even better and growing community. Payoff has been very positively reviewed within the industry’s leading sites, such as Magnify Money (A+ Transparency Score), NerdWallet (Best Customer Experience), ekomi (4.8 out of 5 stars), CreditKarma and the Better Business Bureau.