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Tuesday, October 7, 2014

7:30 a.m. -

BREAKFAST BRIEFING: BETTER DATA MEANS BETTER UNDERWRITING

Jeff Keltner, Chief Growth Officer, UPSTART

Despite building efficient web-based systems to service borrowers, most existing online lending platforms continue to rely on the decades-old method of underwriting loans - the FICO score and credit report. As a result, they can’t reasonably serve borrowers with short credit and work histories - they see any inexperienced borrower as high risk. However, by looking beyond the credit file to additional academic variables such as colleges attended, area of study, academic performance and standardized test scores it is possible to develop a statistical model of the borrower’s financial capacity and personal propensity to repay a loan.

Sponsored by:
Upstart

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