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 . . .
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.
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’.
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.