Community finance and open banking technology can support ‘credit invisibles’ – Salad Finance

Low credit scores shouldn't always mean an automatic 'no' for your customers. A new report from Salad Finance highlights how open banking is changing the game for 'credit invisibles.' These are hard-working people who are often locked out of traditional financing due to a thin credit file or a past mistake. For retailers, this technology means you can say 'yes' to more customers without taking on extra risk. Traditional credit bureaus only show a snapshot of the past. Open banking allows lenders to look at real-time cash flow and income data. This provides a much more accurate picture of what a customer can actually afford today. By using these modern underwriting tools, lenders can identify reliable borrowers who have been unfairly penalized by legacy systems. For your business, this translates to higher conversion rates and expanded access to credit for a broader demographic. You can help customers build their credit history while they complete their purchase at your store. Adopting these technologies helps bridge the gap between financial exclusion and a completed sale.

Source: Finextra — Lending

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