NEW YORK, NY — New technology unveiled by RIBBIT at this week’s Fintech Nexus in New York will help users better manage their finances.
RevealedAffordability is a bank account affordability solution that powers a suite of unauthorized and consumer-authorized data products. They provide real-time predictive assessments of income, spending behavior and identity to inform smarter credit underwriting decisions.
Consumer cash flow cycles have been negatively impacted by the halt in government pandemic stimulus and recent inflationary pressures on spending. Banking behavior data from RIBBIT reveals that consumers are now 31% more likely to spend their entire bank account balance each week, despite a relatively steady stream of earned income.
These shifts in the cash cycle are driving consumers to increase their finance activities by up to 22%, primarily through buy-now, pay-later, access to earned wages, and short-term installment loans. Fraudulent bank accounts have also doubled, with more than 750,000 fraudulent accounts using multiple identities in the past 30 days. The result is a 40% decrease in consumer “affordability” – the ability to pay financial obligations – that won’t show up in credit data for 6-8 weeks.
RevealedAffordability leverages the recency and accuracy of banking data to provide a faster assessment of a consumer’s financial health than credit data alone. Thousands of bank behavior insights assess income stability, account ownership, and spending behavior to generate a more comprehensive assessment of affordability.
RIBBIT data can be leveraged anywhere in the application process, regardless of how the consumer chooses to provide their information, including KYC and identity verification, bank account registration and authorized access to online banking services. Financial service providers can now access a wealth of predictive banking behavior attributes, rules, and scores to accurately assess the 95% of US households with a bank account.
“Bank Behavior puts real-time revenue and affordability information in the hands of financial service providers to make more informed decisions,” said RIBBIT CEO Shawn Princell. “We built our RevealedAffordability® technology to be deployed across the consumer journey – new apps, payments, account management and collections – to enrich any use case with the power of banking data.”
In 2020, lenders admitted a lack of confidence in decision-making for 62% of the US population due to the impact of COVID-19 and the inability of credit data to assess affordability during changes dramatic economics. RIBBIT’s RevealedAffordability technology continuously learns new behaviors to support adaptive decision-making in a changing economy. It was derived from a combination of a robust payments database and AI-enhanced cash flow analysis.
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Tony Zerucha is a longtime contributor in the fintech and alt-fi spaces. Twice nominated for LendIt Journalism of the Year and winner in 2018, Tony has written over 2,000 original articles on blockchain, peer-to-peer lending, crowdfunding, and emerging technologies over the past seven years. He has moderated panels at LendIt, the CfPA Summit, and DECENT’s Unchained, a blockchain expo in Hong Kong.