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 . . .
Failure is not fatal, but failure to change might be ~ John Wooden
Have you ever noticed how some criticism can play havoc with your hearing and scrambles your brain? Words are suddenly hard to decipher and the ego is instantly drawing up offensive plays to counter act the severe disapproval. It becomes almost impossible to achieve a workable solution when one party is on the attack while the other is strategizing a bloody coup d’état.
Be curious always! For knowledge will not acquire you; you must acquire it ~ anonymous
Come on, don’t judge me based on a few of my personal traits, it’s just not fair, rather look at the whole me, then decide if I am worthy. And if you are evaluating my credit worthiness, impacting the rest of my life, the analysis better be meticulous, expansive, insightful, and timely.
A little knowledge that acts is worth infinitely more than much knowledge that is idle – Kahlil Gibran
Open banking just got a giant goose from the President of the United States. In an executive order, President Biden strongly suggested that the Consumer Financial Protection Bureau (CFPB) endorses guidelines forcing banks to loosen their grip on consumers’ bank data. Time for banks to “give it up” to the actual account owners so they can download their banking information and share it with other banks and 3rd party service providers. Wow, this is big!