Affirm wants its data to tell a more complete customer story

Affirm is upgrading how it approves your customers. The BNPL giant just rolled out a new AI-driven underwriting model across its U.S. checkout operations. For retailers, this means Affirm is getting better at saying 'yes' to shoppers who might have been declined by traditional credit scores. The new system uses 'transformer-based' technology—the same logic behind tools like ChatGPT—to analyze the timing and sequence of a customer's financial history rather than just a flat score. This shift is about precision. Traditional credit checks often miss the nuance of a shopper's current financial health. Affirm’s new model looks at how customers interact with their own platform over time. If a customer has a history of successful repayments with Affirm, the lender can now weigh that more heavily than a generic FICO score. For your business, this translates to higher conversion rates at checkout without necessarily increasing the risk of defaults. It allows Affirm to extend credit to 'thin-file' borrowers or those with bruised credit who are currently demonstrating responsible spending habits. As the lending landscape tightens due to economic shifts, having a partner that uses advanced data to find qualified buyers is a competitive advantage for any merchant.

Source: Tearsheet

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