The Finicity team is honored to receive recognition from the Mortgage Bankers Association (MBA) as a winner of its fifth-annual Residential Diversity and Inclusion Leadership Award under the category of Market Outreach Strategies.
As part of MBA’s strategy and promotion of diversity and inclusion, the award recognizes member company initiatives that are specifically designed to increase outreach, marketing or products to attract customers from the industry’s fastest-growing market segments. The award commends the hard work, dedication and creativity of exemplary programs that focus on achieving organizational diversity and inclusion.
A Better Credit Review Process
For consumers to better assess and control their financial future and not be left in the dark over their own credit, they need greater transparency into and control over the data being used to determine their creditworthiness. The credit review process has notably left the most financially vulnerable populations at the greatest disadvantage, severely limiting their ability to participate in the credit market.
The current pandemic has only exacerbated problems with this review process. In a recent study we conducted, 73% of those with a household income under $50,000 said these economic times and financial situations have made it difficult for them to keep up with bills and payments.
Open Banking: The Engine Driving Financial Inclusion
The credit-decisioning process needs to change to include more people in the traditional financial system. Finicity’s open banking platform is the engine that drives improvement in the lending process and has introduced several new products and partnerships to further the inclusion of more people in the traditional financial system.
Leveraging the Finicity open banking platform’s robust data intelligence layer, Finicity Lend provides a new alternative data service, Cash Flow, that analyzes financial account data delivering a broad set of cash flow attributes. This gives lenders more accurate insights into a small business or individual’s creditworthiness. The Cash Flow analytics service digitizes and automates the capture and delivery of data that previously required significant combinations of manual and automated processes to extract and analyze.
The use of this alternative data is supported by the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency as referenced in their Interagency Statement.
In addition, Finicity’s open banking platform empowers consumers to control and share their data to improve their financial lives. And now they can share their utility and phone payment data in order to boost their credit score. Building on its leadership position with financial institution coverage, Finicity has new payroll data sources from a leading payroll provider to its open banking platform. Providing a direct connection to the payroll provider further enhances Finicity’s open banking platform’s ability to verify consumer-permissioned income and employment — critical to many lending use cases — with real-time, direct-from-the-source data.
Expanding the types of data used to determine creditworthiness addresses longtime consumer concerns that have resurfaced recently due to the COVID-19 pandemic and resulting economic downturn. According to our recent study, 82% of consumers said they believe the current credit review process and criteria need to change to make it easier for responsible borrowers to prove their creditworthiness and increase access to loans.
Our open banking platform powers these new innovations as well as the vast majority of digital verifications of assets, income and employment through solutions and data offerings. These solutions empower consumers to control and benefit from their data — all at their fingertips — ultimately resulting in better financial outcomes for consumers and lenders.
We thank MBA for this honor and recognition. And to learn more about our solutions, check out our Finicity Lend solutions for credit decisioning on our webpage.