VVeraScore introduces a SaaS model for lenders

By Edlyn Cardoza

Today

  • Consumer credit
  • Credit risk
  • Credit score

VeraScore, an innovative AI platform for measuring consumers financial health, introduces a SaaS model that will allow lenders to extend credit more accurately and fairly. This will allow them to increase their pool of borrowers while reducing the risk of granting new loans. According to Federal Reserve Bank of New Yorkthere is over $16 trillion in outstanding consumer credit, but financial institutions cannot properly measure and assess over 45 million more Americans who do not have an accurate credit score.

VeraScore’s patent-pending platform is fundamentally different from the old credit scoring model. While FICO scores, and those provided by Experian, TransUnion and Equifax, are single snapshots that rely on weeks-old reports from lenders, VeraScore provides detailed, near real-time analysis of a consumer’s financial health. To do this, it assesses all relevant financial information, including complete bank accounts, salaries, mortgages, loans, and other proprietary data. VeraScore then calculates a series of precise measures of the individual’s borrowing power by deploying AI and machine learning. As a result, banks and other lenders have a more accurate – and fair – way to extend credit.

“Credit scores are an attempt to quantify a person’s character. At VeraScore, we see the world differently,” said Geff Woodward, CEO of VeraScore. “By providing a transparent and objective measure of an individual’s overall financial health on an ongoing basis, VeraScore enables users to quickly influence their attractiveness to lenders by changing their behavior.”

The ability of VeraScore customers to have a measurable short-term impact on their financial health score by improving savings rates and other personal habits contrasts with credit scores, which are based on legacy third-party reports and are inherently prone to inaccuracies and outdated data. .

“Most people have a negative view of credit scores. And for good reason,” said Trond-Henning Olesen, CTO of VeraScore. “The legacy model rewards those with access to the most credit and punishes individuals for years simply based on late payment or lack of credit history. Worse still, millions of Americans have no access to credit at all. We’ve solved this problem head-on, delivering a transformative platform that will help society’s most needy, while empowering lenders to better manage all consumer credit risk. »

The new SaaS platform will create a fairer lending framework for underserved communities and will be available after its seed funding round.

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