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 . . .
Anyone who is just ‘coasting along’ is probably going downhill. ~ Anonymous
Just think if you could start life over, a clean slate, while retaining all your years of experience and knowledge. And if you believe, as I do, that obstacles are the building blocks of learning, wow, we would all be masterminds.
Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen. ~Anonoymous
As the virus starts to lose its punch, the destruction resembles the aftermath of a hurricane, an unrecognizable landscape with splintered pieces of yesterday scattered about. Overwhelming doesn’t do it justice; it’s a prayer away from being hopeless, yet thankfully, we live in a country that knows how to recover under the harshest odds.
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...