AI Helps FinTech Firms Reach More Borrowers
Fintech lenders including Pentadata Inc., OppFi Inc. and LoanSnap are helping traditionally underserved borrowers get loans. These companies feed a wider range of data and use AI to determine credit eligibility, giving more people access to the credit market. It has been crucial for these fintechs to be able to have access to these alternative data sources.
Fintech lenders address the challenges of the one out of six Americans considered “Credit Invisibles,” who are most likely Black, Hispanic and/or people living in low-income neighborhoods. Coming up with innovative ways to enable credit access for qualified individuals currently shut out of the credit market is good for all involved. The use of alternative sources of data, rather than relying on traditional credit scores, removes certain roadblocks the underserved consumers may encounter in their financial journey.