LAS VEGAS–(BUSINESS WIRE)–Greg
Rable, CEO of FactorTrust,
The Alternative Credit Bureau, applauds the Consumer Financial
Protection Bureau’s (CFPB) Project
Catalyst report released yesterday at Money
20/20 which notes the importance of new fintech products and
alternative data. The CFPB outlined in its report the types of fintech
products and services that it would encourage, including firms focused
on giving credit access to consumers by using alternative measures,
putting consumers first.
“The CFPB’s report noted the importance of the industry’s need to
embrace new fintech product and services in order to help the 113
million U.S. consumers with FICO credit scores under 700 today, many of
whom have no credit history with the Big 3 bureaus. The organization
recognizes that ‘a large number of these underserved consumers are
hard-working people, living paycheck to paycheck and waging a constant
and careful struggle to make ends meet.’ The historical perception that
the underbanked are all risky customers has harmed both consumers and
lenders, impeding industry and economic growth. This is a massively
underserved population that, when taking alternative credit data into
account, deserve credit options,” says FactorTrust’s CEO Greg Rable.
launched yesterday a pilot program of its new consumer-focused product, CreditClimber
CreditClimber enables consumers to assist in improving their
CreditClimber credit score by linking monthly bill payment data (such as
mobile phone, utilities, cable/satellite) and considering a person’s
effort and actions to increase his/her financial literacy in order to
provide lenders with a clearer view of their creditworthiness. By taking
into consideration loan performance information that is not reported to
the Big 3 bureaus consumers are more empowered to improve their score.
CreditClimber also provides consumers with educational opportunities
regarding financial goal setting, budgeting and more.
“Not all credit scores are created equal. We believe that every step a
person takes to demonstrate their creditworthiness should help improve
their credit. For that reason, we are analyzing this information during
the pilot to demonstrate that monthly bill payment data should correlate
with a consumer’s score. Also, any focused effort to improve their
financial intelligence should be rewarded with a higher credit score.
Every time a CreditClimber does something positive, they deserve to
improve their credit score,” says Rable.
FactorTrust will pilot the CreditClimber consumer product through the
end of the year. Based on consumer and lender feedback, the company
plans a more aggressive national rollout in 2017.
FactorTrust, The Alternative Credit Bureau, is relentlessly dedicated to
proven analytics and clean credit information that provide lenders
opportunities to grow more revenue, meet compliance regulations and
serve more consumers with more credit options. At the core of
FactorTrust is alternative credit data not available from the Big 3
bureaus (Experian, TransUnion and Equifax) and analytics and risk
scoring information lenders need to make informed decisions about the
consumers they want. FactorTrust Alternative Credit Data and Analytics
accurately predicts risk and the ability to repay of near and non-prime
consumer loans in real-time. The company’s solutions enable financial
service companies an opportunity to uncover creditworthy prospects that
are not surfacing via traditional credit sources. Headquartered in
Atlanta, the experienced FactorTrust team of predictive analytics
specialists, statisticians and financial industry experts has delivered
unique data and valuable insight to lenders throughout the U.S. for more
than 10 years. For more information on the quarterly FactorTrust Underbanked
Index or the company itself, visit www.FactorTrust.com.
Trevelino/Keller Communications Group
Savannah Weeks, 404-214-0722