Underwriting the American Dream

Fintech and alternative credit scoring are helping underserved consumers achieve the American Dream.

It is estimated that over one hundred million Americans have a credit dilemma due to limited or lack of traditional credit history. Through innovation and technology, consumers can be given expanded access to credit. The Consumer Financial Protection Bureau (CFPB) highlights that artificial intelligence–based lending decisions are aiding this expanded credit. According to the CFPB, a prominent fintech platform is lending to 27 percent more approved borrowers and with lower interest rates. This creates large market opportunities for fintech innovators. Other agencies believe the prospects could reach much more.

In this new paper, Mark Renzi, Michael Canale, Brett Witherell, and Andrew Nolan write about how fintech and alternative credit scoring can help ease credit barriers and eventually provide economic and social mobility for those with limited credit.