The “Small-Dollar Lending Rule” is going to hurt: our preliminary analysis of EDGE client data suggests there could be as much as 14% losses for lenders’ portfolios, depending on the product. Additionally, our research shows that lenders can reduce those losses to 5-10% by leveraging bank data analytics (more below).
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Read this white paper from EDGE to learn about how regulatory differences affect lending and borrowing patterns.
How Open Banking and Cashflow Analytics Can Eliminate the Stipulation Process for Credit Unions
Once the cornerstone of all lending decisions until the mid-eighties, cash flow underwriting is at a new tipping point thanks to machine learning and data analytics.
If you’re like most people, you answered the NCAA Championships. That’s not a slight against others like the National Invitational Tournament, College Basketball Invitational, and CollegeBasketball Crown. But when it comes to college basketball and March sports in general, there’s the Big Dance and then there’s everyone else.
Super Bowl LVIII is on the books. Whether you were among the 123 million like me who watched the game or the other half of the country who didn’t, you’re probably familiar with the adage “defense wins championships.” Seeing the Chiefs and 49ers go back and forth got me thinking about the legacy consumer risk paradigm where you’re only assessed on your equivalent of defense – how successfully you’ve kept creditors at bay, as reported on traditional credit reports based on historical tradelines.
In the world of lending, making sound decisions is paramount. A borrower's income is a critical factor in assessing their creditworthiness and ability to repay a loan. Lenders require effective tools to evaluate this key aspect of every loan application. Enter EdgeIncome, a solution that empowers lenders to make informed decisions while streamlining their operations.
EDGE´s VP of Strategy spoke on a panel on "The Power of Alternative Data in Lending" alongside other leaders in fintech and credit risk analytics.
The Consumer Financial Protection Bureau conducted an analysis based on its Making Ends Meet survey suggesting that cashflow data can inform better credit underwriting decisions.
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EDGE is thrilled to announce the release of our new product, EdgeRefine, a cutting-edge technology product designed to revolutionize the way you analyze bank data and streamline consumer credit decisions.
Bank transaction-based credit risk underwriting revolutionizes lending by providing valuable insights into borrowers' repayment abilities, and EdgeScore excels as a leading predictive risk score in accurately assessing risk across the credit spectrum.
Bank transaction analytics platform EDGE announced today that it is officially a Consumer Reporting Agency (CRA). As a CRA, EDGE can deliver income verification and credit risk analytics based on consumer-permissioned data while providing all consumer safeguards required by the Fair Credit Reporting Act (FCRA).
Edge, using its industry-leading data lake, has gained valuable insights into the influence of Buy Now Pay Later (BNPL) on various credit types. Proprietary research reveals that borrowers engage in familiar patterns such as loan stacking, increased borrowing during financial stress, and heightened default risk due to additional obligations.
Buy Now, Pay Later plans are frequently in the headlines for opportunities and risks alike. BNPL obligations pose a challenge for other lenders because they are largely unreported to credit bureaus. However, these liabilities can be reliably found in bank transaction data – an essential step in decisioning on a complete picture of consumer risk.
At Opal Group's summit, Mark Friedgan, CEO of NinjaHoldings, showcased NinjaEdge's data-driven analysis of 2.5 billion bank transactions, addressing the risks of "hidden liabilities" like BNPL loans and advocating for more profitable underwriting solutions that encompass a consumer's complete financial picture.
“Already a critical tool in many lenders’ decision-making, our updated score is even more predictive of consumer underwriting risk. We have significantly improved our ability to score applicants with less data or lacking consistent income sources.”
Mark Friedgan – CEO of NinjaHoldings, the parent company of NinjaEdge – kicked off the LEND360 conference in Chicago with timely perspective on consumer lending against the backdrop of unprecedented inflation and the potential to grow profitability through the economy’s ups and downs using NinjaEdge analytics.
Traditional credit scores are inadequate for assessing risk in nearly half of the U.S., while analyzing cash flow behaviors in checking and savings accounts provides a more comprehensive financial picture, leading to actionable insights that enhance underwriting decisions.
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Mark Friedgan, CEO of the parent company of NinjaEdge, spoke on incubating the cashflow underwriting IP that would eventually become the NinjaEdge B2B analytics offering.
NinjaEdge announced today the successful integration of its proprietary bank data analytics service into Liberty Rent’s platform to convert more applicants into residents for landlords. Founded in 2014, Liberty Rent is a SaaS analytics company that provides best-in-class risk analysis, payment services, and third-party claims settlement for multifamily property owners and managers. With its rent guarantee solution, Liberty Rent facilitates “no cost, no risk” acceptance of potential residents for property management companies throughout the U.S.
Alternative data and risk assessment platform NinjaEdge announced today a new partnership with Infinity Software, the leading loan management software provider for alternative credit lenders in North America. The partnership will seamlessly integrate NinjaEdge’s proprietary bank data analytics service into Infinity’s ecosystem of traditional and alternative credit risk signals, decision engines, and verification providers.
Today, we're diving into the world of storefront lending and how automation is transforming the game. We'll explore the incredible advantages of automation and how it's paving the way for more efficient, customer-friendly, and data-driven lending processes.
In the world of lending, making sound decisions is paramount. A borrower's income is a critical factor in assessing their creditworthiness and ability to repay a loan. Lenders require effective tools to evaluate this key aspect of every loan application. Enter EdgeIncome, a solution that empowers lenders to make informed decisions while streamlining their operations.
Bank transaction-based credit risk underwriting revolutionizes lending by providing valuable insights into borrowers' repayment abilities, and EdgeScore excels as a leading predictive risk score in accurately assessing risk across the credit spectrum.
Verification of income has traditionally been one of the most expensive and time-consuming steps in a loan application. With the innovation of instant bank verification (IBV), proof of income can be achieved in near real-time along with a host of risk insights relevant for credit decisions.
Edge, using its industry-leading data lake, has gained valuable insights into the influence of Buy Now Pay Later (BNPL) on various credit types. Proprietary research reveals that borrowers engage in familiar patterns such as loan stacking, increased borrowing during financial stress, and heightened default risk due to additional obligations.
Buy Now, Pay Later plans are frequently in the headlines for opportunities and risks alike. BNPL obligations pose a challenge for other lenders because they are largely unreported to credit bureaus. However, these liabilities can be reliably found in bank transaction data – an essential step in decisioning on a complete picture of consumer risk.
Traditional credit scores are inadequate for assessing risk in nearly half of the U.S., while analyzing cash flow behaviors in checking and savings accounts provides a more comprehensive financial picture, leading to actionable insights that enhance underwriting decisions.