March 30, 2021
Just like the crippling recession in 2008, the virus is another reminder of the dangers of incurring too much debt; the grim reaper may be lurking around the corner or unfortunately, sitting in your family room.
Forbes reports that nearly a third of Americans say the stimulus check won’t sustain financial well-being for a full month. We know most millennials purchase goods/services using their debit cards, aka real, dependable money sitting in a bank account. But what about the rest of us jokers who have racked up unpayable loans, and credit card debt. Didn’t we learn the lessons from the 2008 recession . . . obviously a no and definitely a yikes moment for many!
As more payments are paid through our bank accounts, consumers’ financial footprints will be reflected in their transaction information. The RIBBIT data analysts team has cracked the risk assessment code, making sense out of the bank account data to analyze and predict future fiscal behavior based on current banking patterns. The insights garnered give data scientists the ability to predict credit worthiness with a high level of reliability and accuracy. The RIBBIT team claims the resulting probability score is more effective than the credit score however, when used together, the outcome is a more comprehensive assessment tool benefiting both lenders and consumers.
Since the current lending environment is so chaotic, doors are opening to an enlightened scientific formula that supports intelligent decision-making based on technology. Account Insights through technology is a bed partner of Artificial Intelligence and the engagement has just been announced at RIBBIT. Evaluating payment behavior over a more appropriate and insightful period is at the core of bank insights, painting a relevant picture of consumer’s fiscal propensities in real-time.
Account Insights like Artificial Intelligence, uses deeper learning mechanisms which constantly manipulates, changes, and improves data. Credit scores encompass more static consumer information that often don’t reflect present purchasing patterns, a definite gap in assessing risk. Relevancy of information is paramount in the new Bank Insights analysis, what really matters, what doesn’t and how do we use it to make the outcome smarter and more dependable for lenders and consumers. As a consumer, I expect lenders to have my back so please don’t approve my request for a loan if its going to cripple me in the future.
This country is going to be facing another huge financial calamity when all the deferred payments and loan forbearance periods end, and people still don’t have money. Early in 2021, the ban on most residential and rental evictions will come to a crashing halt and everyday people will be looking for some type of loan to prevent homelessness. It’s a nauseating thought. According to the Federal Government . . . The FHA has extended its ban on evictions from properties secured by FHA-insured single-family mortgages through December 31, 2020. Freddie Mac and Fannie Mae mortgages have extended their ban until January 31, 2021.
And oh, by the way, have a Happy New Year.
Keep in mind that businesses extending credit also have a shelf life and can easily go under by making the wrong loan decisions. Never before has the need for accurate, relevant, intelligent, analyzed, real-time fiscal information been so critical for our struggling economy drowning in unchartered waters. The credit score is inadequate by itself, but attach it to RIBBIT’s real-time, highly intelligent analysis of bank transaction data and now we’re in business!
Stay tuned . . .
Former FactorTrust Founder/CEO, Greg Rable, Joins RIBBIT Board of Directors
OXFORD, Ohio, April 12, 2022 /PRNewswire/ — Today, RIBBIT Inc. announced the appointment of Greg Rable to the RIBBIT Board of Directors. As the former Founder/CEO of FactorTrust, since acquired by TransUnion in 2017, Greg brings over 25 years of management and strategy experience, combined with a history of building successful fintech and alternative data businesses for the consumer finance space. In his role, Mr. Rable is helping guide the RIBBIT leadership team and promote the growth of bank behavior data as a powerful and necessary predictive data solution.
Getting Real with Financial Inclusion
Financial inclusion matters not only because it promotes growth, but because it helps ensure prosperity ~ Sri Mulyani Indrawati
How arbitrary are the words ‘financial inclusion’; who’s in, who’s out and why is it so unfair? If a consumer is ‘in,’ there are financial opportunities for building a better life. If a person is ‘out,’ good luck with climbing out of a deep money pit. Today’s financial institutions think they are building a more inclusive process. However, many are still using information reflective of historical bias so if it didn’t work then, it ‘ain’t gonna work now’.
Why Interpretation of Data Matters
When a man gives you a rose, what you see may not be what he intends~ Patrick Rothfuss
Assessing information is the foundation of most of life’s important decisions. Mistakes are made when the data is unavailable, unclear, inaccurate, insufficient, immaterial, or unjust. How many people have suffered throughout history by poor decision-making? Like it or not, today’s world is data driven, hopefully an information mecca for making insightful, educated, proven and unbiased decisions. However, data is just that, information on a page, it becomes meaningful only when it is wisely analyzed and interpreted.