March 12, 2021
Nothing great was ever achieved without enthusiasm.
The younger generations are fearful of going into debt unlike mama and papa so a majority stick with their debit cards when purchasing goods and services. In the short run, paying with a known quantity of funds contributes to a realistic budget and reduces financial stress, but it doesn’t build a reliable credit score. No information = No credit scores = No loans. Unfortunately, this formula, during this bleak economic crisis spells trouble for those without credit scores needing loans. Definitely a Yikes moment!
Credit scores are intended to reflect consumers’ responsiveness to their fiscal obligations: do they pay their auto loans, credit cards, mortgages, rent, finance contracts on time or at all? Plain and simple – – can these consumers be trusted to pay back the money they borrow? If they demonstrate an ability to pay, consumers will be offered lower interest rates and better deals. Unfortunately, the people that need loans the most usually get the short end of the stick due to their poor credit record or lack of and are often victims of the ridiculously high interest lenders
Fortunately, there is help on the way in a new lending process developed by RIBBIT that incorporates consumer bank transaction histories as a precise measurement tool for evaluating risk. A current survey analyzed by Bankrate found that sixty-three percent of millennials don’t have credit cards while a paltry 23% have a single card. However, their debit card transactions are displayed in their bank accounts offering a fresh and active look at a consumer’s existing buying patterns. Utilizing artificial intelligence, the RIBBIT data scientists analyze the collected bank data, combining it with massive amounts of personal attributes to predict a consumer’s ability to pay. This groundbreaking scientific formula will offer lending insights never imagined, changing the way lenders evaluate loans, and opening doors to new-found borrowing opportunities for consumers.
RIBBIT’s patent pending bank account analytics streamlines affordability decisioning and increases approval rates while lowering the financial risk for lenders. Steven Thompson, RIBBIT’s Chief Data Scientist explains, “Our RevealedAffordability™ technology provides insights into how the customer uses their bank account and to what capacity they can afford a financial product. How much the customer spends, how repetitive, and where they spend in their cash flow cycle provide a lot of clarity about their future behavior.”
Bank intelligence improves loan and payment performance without having to rely solely on past credit history. This creative evaluation system surpasses traditional credit solutions no matter how customers wish to engage and most importantly enhances our sedentary, complacent credit system that is long overdue for improvements.
Stay tuned . . .
Judge a man by his questions rather than by his answers ~ Voltaire
As a typical consumer of goods/services, I wonder if my personal data is genuinely protected from the daily occurring breaches. As an owner of an AI-based, data analytics provider, I know that RIBBIT.ai’s number one priority, at all costs, is protecting our clients and their customers personal information. However, the data breach is every business’s worst nightmare, and if a representative tells you its security is 100% fail safe, turn around, run fast, and locate an honest company.
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If we can choose, we can change. If we can’t change, then choice means nothing. ~The Rhythm of War
Defining data science is challenging enough, so let’s cut to the chase and focus on the goal – show me the money! Utilizing data science in business is the future, the now, and the forevermore. It’s an insightful and complex process that merges statistics with businesses acumen to make smarter decisions so that profitable opportunities can be expanded, examined, measured, and implemented. As technology advances, so does the scope and storage of data, increasing prospects for more accurate and relevant customization of products/services.