MINNEAPOLIS - (07/29/04) -- Fair Isaac has launched a new FICOscore designed specifically for the underserved market-those peoplewho don't have regular credit scores because they little or nocredit history with traditional financial institutions. "In thepast, many [financial institutions] simply turned down a loanapplication from someone who didn't have a credit score," said FI'sCraig Dillon. "But just because someone isn't in one of thenational [credit risk assessment programs] doesn't mean they'reautomatically a credit risk....If you aren't in the traditionallending system, perhaps because you are new to this country, or youare young, for example, it is very hard to break into it. This newscore can help." Fair Isaac estimates that about 160 million peoplewere already covered by the company's traditional FICO scores butthat approximately 50 million didn't have enough credit history togenerate a score for them. Using alternative consumer data-such aspayday loan performance-FI can now provide a credit score for about25 million of those "unbanked."
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As AI and digital assets become mainstream, banks are spotting new opportunities to integrate payments with other activities.
July 4 -
House Republicans overcame internal divisions to narrowly pass President Trump's tax and spending package Thursday afternoon. The measure would cut the Consumer Financial Protection Bureau's funding level, among other provisions.
July 3 -
A new partnership with Google Cloud will let the Spanish bank offer Gemini to all staff after a successful ChatGPT deployment.
July 3 -
Atlanta-based CoastalSouth's initial public offering prices at $21.50 a share; Valley National Bancorp announces Lyndsey Sloan will succeed Gary Michael as general counsel; Webster Financial Corporation taps a new chief risk officer and appoints a new board member; and more in this week's banking news roundup.
July 3 -
Capital One closed the deal to buy the credit card provider in May and as part of the review process, decided to exit its home equity lending business.
July 3 -
In a rare move for a credit union, the Seattle institution has snapped up the 13-member team that created EarnUp's AI Advisor product.
July 3