What does traditional credit screening miss? Start with 70 million potential customers.

Posted on August 29, 2019

A new world of creditworthy customers are getting lost in the "invisible marketplace." Here's how our Credit Risk solution can help you find them.

They are the future of your business, the people who can help lenders reach aggressive sales goals in an increasingly tight credit market. They are 70 million strong and loaded with purchasing power. But according to traditional credit screening, they simply don’t exist. 

The fact is, as many of 30% of adults in today’s credit market are virtually invisible to traditional screening methods. 

Those traditional scores were designed to assess traditional middle-class and upper-class consumers who purchased houses and cars and used credit cards frequently, building up extensive credit histories over time. It turns out Millennials and Generation Z consumers just don’t fit that pattern. The oldest Millennials are now nearly 40 years old, but only 15% of Millennials have purchased a house.[1] Many will take Uber rather than buy a car, and prefer Venmo over Visa, but millions of these thin-file, no-file digital natives are genuinely creditworthy and just waiting to be your good customer. 

It’s a big problem. And a massive opportunity. 

But finding new growth will require greater risk. As risk grows, lenders who rely on traditional scores will be forced to limit their lending, increase their risk of losses, or miss out on the growing population of younger borrowers.

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Tags: Machine Learning, lending, Artificial Intelligence, linear model, interpretable results, Alternative Data, Credit Risk, Credit Scores, credit screening, Millennials, Gen Z, Alternative Lending, Credit Invisible

No time to lose. In 2019, lenders simply have to be smarter.

Posted on August 21, 2019

Inadequate credit scores. Tightening Demand. Changing Demographics. Can businesses grow without raising risks?

 

Despite rising FICO scores, credit card charge-offs are increasing.

In the first quarter of 2019, charge-offs among card-issuers increased to the highest level in seven years, even while FICO scores rose overall. When credit scores rise along with charge-offs, it’s time for lenders to re-evaluate the scores they’re relying on for lending decisions.

 

FICO scores no longer reflect consumers’ ability to pay their debts.

Credit scores may have risen, but that doesn’t mean high-scoring borrowers are on firm financial footing. 40% of U.S. households would have trouble raising $400 to cover an emergency.  Additionally, Goldman Sachs and Moody’s Analytics recently claimed certain FICO credit scores have been artificially inflated over the past decade.

 

Credit card debt is worsening for young Americans 

Specifically, 8.05% of outstanding credit card debt among 18 - 29 borrowers was delinquent by at least 90 days.  If young consumers, whose scores weren’t affected by the Recession, are struggling to make payments now, how will they fare when interest rates rise or the economy falters? 

 

Demand for credit is declining even as credit risk increases.

It gets worse. At the same time that credit risks are increasing, demand for credit is falling. According to the New York Fed, credit inquiries in the last six months have fallen to historical lows. 

 

Finding new growth will require greater risk

As risk grows, lenders who rely on traditional scores will be forced to limit their lending, increase their risk of losses, or miss out on the growing population of younger borrowers.

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Tags: lending, Financial Services, AI Lift, Accelitas, Artificial Intelligence

4 Ways that Alternative Data Can Help You Lift Your 2019 Growth Goals

Posted on March 21, 2019


The lending market can always benefit from a new technological tailwind. And while there’s been a lot written about AI, the real fuel that’s driving the tailwind is alternative data. In this blog, we discuss four ways alternative data is transforming the lending market and propelling lenders to sustainable financial success in the face of market uncertainty.

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Tags: AI Lift, Alternative Data, KNOW Conference

How Will You Grow in 2019?

Posted on March 20, 2019

A new year and desire for growth brings expansion to our executive team, a waterfront office relocation to Petaluma, California, and a new Credit Risk Web Service that is blowing away traditional credit screening services.

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Tags: AI Lift, Credit Risk Web Service, Office Relocation, Executive Team Expansion

HSBC Data Breach Highlights the Dangers of New Account Fraud Attacks

Posted on November 21, 2018

HSBC, the world’s twelfth largest financial services organization, has reported that a little under 1% of its U.S. checking accounts were accessed by unauthorized users in early October. As industry analyst Ron Shevlin has pointed out, 1% of HSBC accounts is roughly the number of all accounts in a mid-sized bank or credit union. In this blog, learn why new account fraud is increasing and how you can stay safe.

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Tags: Identity Intelligence

A Winning Combination For Lenders: AI and Alternative Data

Posted on November 5, 2018

Artificial Intelligence (AI) is getting a lot of attention in the financial services market - and rightfully so. AI promises to deliver more accurate predictions of creditworthiness for lenders. It also promises to be useful in detecting fraud. In this blog, learn how lenders need more than AI platforms and new analytical models, to realize its full potential.

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Tags: Identity Intelligence, Artificial Intelligence, Alternative Data

How to Leverage Intelligence to Help Online Lenders

Posted on October 26, 2018

We’re back from this year’s LEND360 conference. It was another great event: insightful presentations, engaging conversations, and a chance to reconnect with friends and colleagues. In this blog post, learn about 3 major topics that leading online lenders were discussing at this year's show. 

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Tags: Lend360, Identity Intelligence, Artificial Intelligence, Alternative Data

One World Identity & Identity Intelligence - Interview with Greg Cote

Posted on October 18, 2018




Looking for a crash course on predictive analytics for lending decisions, technology for establishing identity, financial services market trends, different forms of identity theft, and the importance of combining Artificial Intelligence (AI) techniques for delivering the most precise and understandable scores for making lending decisions?

In a wide-ranging 35-minute podcast, Accelitas CEO Greg Coté covers everything you need to know about Identity Intelligence and more with One World Identity’s Cameron D’Ambrosi.

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Tags: Identity Intelligence, Artificial Intelligence, State of Indentity, One World Identity