Memo to Bank Executives
Dear Bank Executives,
What’s wrong with our current credit system?
The current credit system is a barrier to the financial wellness of many Americans, including the nearly 45 million people that are credit invisible in the United States. 64.5% of 18-19 year olds and 20.2% of 20-24 year olds are credit invisible. These statistics are higher than that of any other age group. Because the system requires people to have credit in order to get credit, people who can’t inherit credit through their families and have not been taught financial literacy are left behind.
Introducing CreditVisible.
CreditVisible wants to make accessing credit easier for those that are credit invisible. The six month wait period can be a major pain point for someone that is looking to show that they are credit worthy in an instant. At CreditVisible, we empower financial wellness for consumers across the country as they begin their journey to establish credit. We are creating a world where financial health and learning is safe and accessible to everyone – giving people the freedom to pursue their dreams.
We envision a financial services industry that provides an even playing field to everyone, helps close the wealth gap, and embraces a broader assessment of credit worthiness.
To make this vision a reality, we will:
- Provide financial literacy and health to millions of consumers across the country
- Leverage data and innovation to develop a credit-decision model that reaches all consumers
- Expand credit access and increase inclusivity by assessing consumers where it matters to them most
- Provide banks and lenders entirely new financial data and open doors to our country’s credit invisible customer base.
CreditVisible FWA® (Financial Wellness Assessment) is a tiered model based on eight payment categories: rent, utilities, subscriptions, medical bills, overdraft occurrences, after-pay, childcare, and extracurricular activities. Our groundbreaking algorithm provides a precise and accurate analysis of consumer behavior and their everyday recurring payments.
Here’s where you come in.
Gen Z, the most credit invisible demographic, is worth approximately $140 billion. By partnering with us, your bank will be able to build trust with customers at the age when they are just starting their financial journey. You will gain new customers for loans who were not previously eligible due to their nonexistent credit history.
When banks take time to address customers’ financial well-being, it increases their confidence in their primary bank. In turn, they’re willing to have a higher percentage of their household’s total investments with their primary bank, creating long-term loyalty. Research also shows that U.S. consumers keep their credit card provider for 10 or more years. Being able to open credit to a wider population will help your bank bring in more diverse customers and establish a strong relationship with them.
You and your customers can utilize the CreditVisible app and website.
The CreditVisible mobile app will be the hub for our users with features that allow our customers to upload payment history verification and link with apps for companies like utilities, subscription services, etc. The mobile app will also have a searchable directory of apps tagged by location so that mobile app users can search for bank partners who recognize the CreditVisible financial wellness score for loan approvals. This is how our customers will find your bank and become your customer as well.
Your staff will have employee level access to our app and website and you can utilize our API to integrate our data into your app and website as well so that you can easily view any potential customer’s CreditVisible tier to assess how much credit you are willing to lend them.
How we will measure success.
Our main objective is to help those that are credit invisible to gain credit, so our top KPI is to track how many customers are gaining credit by using CreditVisible. We will also track the loan payment success rate for those customers that were given credit due to our service. We will ensure that those whom we have decided are credit worthy are actually making their payments. Finally we will track how many banks, credit unions, and other institutions, like yours, have purchased/licensed our algorithm.
Warmly,
The CreditVisible Team