Inventive Silicon-Valley-based Short-Term and Installment Lender Utilizes FactorTrust Data for Underwriting Consumer Loans
FactorTrust, The Alternative Credit Bureau, announces a new customer relationship with Silicon-Valley-based consumer lending company LendUp. LendUp leverages FactorTrust data to expand its robust underwriting process.
A 2015 Federal Reserve Board study found that 47 percent of Americans could not cover a $400 emergency expense without borrowing money, underscoring the critical need to preserve access to short-term, small-dollar loans. LendUp’s mission is to not only give these consumers access to the funds they need, but to also lower the cost of borrowing over time and help customers build their credit scores.
To support this undertaking, the company developed the LendUp Ladder to ensure consumers have an actionable path to increased access to money at better rates for longer periods of time where available. Customers climb the ladder by earning points. Customers earn points by repaying loans on time and by other actions such as taking the free financial educational courses offered by the company.
“At LendUp, we are committed to aligning the success of our business with the success of our customers, and FactorTrust will play a key role in allowing us to ensure a thoughtful underwriting process,” states Sasha Orloff, LendUp Co-Founder and CEO. “The more consumers who can safely access our products when they need to borrow, the more opportunity they have to better manage their day-to-day needs and improve their financial health.”
“FactorTrust data helps us verify customer identity and expand the universe of people we are able to approve,” added Ofer Mendelevitch, LendUp’s Vice President of Data Science.
FactorTrust has provided alternative credit data, analytics and risk management solutions on consumers who lack traditional credit options for lenders since 2006. Most recently, the company announced the release of LendProtect ATR, a solution which ensures short-term lenders have the data needed to verify consumers’ ability to repay loans.
“It is important to us that we continue to support underbanked consumers’ ability to build credit and improve their financial position. We are proud to offer data that supports LendUp’s mission of improving the financial standing of underbanked consumers,” concludes Greg Rable, FactorTrust Chief Executive Officer.
For more information on FactorTrust, please visit www.FactorTrust.com or contact FactorTrust at 1-866-910-8497.
About FactorTrust
FactorTrust, The Alternative Credit Bureau, helps lenders manage the credit lifecycle of underbanked consumers using unique alternative credit information not available from the Big Three bureaus, enabling them to offer non-prime consumers the credit they deserve. Nearly 100 million U.S. adults have non-prime scores. Leveraging the company’s credit information, lenders can more accurately predict future borrowing behavior, credit performance and risk scoring for this growing segment. Headquartered in Atlanta, the experienced FactorTrust team of predictive analytics specialists, statisticians and financial industry experts has delivered unique data and valuable insight to lenders throughout the U.S. for nearly 10 years. For more information on the quarterly FactorTrust Underbanked Index or the company itself, visit www.FactorTrust.com.
About LendUp
LendUp builds technology that expands credit access and choice for the more than 80 million Americans who currently have limited options within the traditional banking system. It develops safe, transparent products designed to help customers get access to more credit at lower rates over time where and when available, which furthers LendUp's goal of improving financial literacy and providing customers with an opportunity to build their credit scores. LendUp is located in downtown San Francisco and is backed by prominent Silicon Valley investors including Y-Combinator, Google Ventures, Susa Ventures, Data Collective, Kleiner Perkins, Andreessen Horowitz Seed Fund, Kapor Capital, QED, Eagle Cliff Investors, Yuri Milner and Thomvest Ventures, plus other highly regarded angels and entrepreneurs.
