Challenge:

A micro-lender providing credit to SMEs across the United States with five different methodologies for pricing risk sought to create a unified credit score including FICO as well as other attributes in order to grow 3x in the next three years.

Platform Solution:

DemystData conducted a retro-test leveraging bureau data and alternative data, then developed a credit score that could be used nationally across the organization’s different regions. DemystData also provided a method for quickly verifying applicants’ self-reported data.

Results:

  • The DemystData Score was able to identify large numbers of mispriced applicants based on risk, as well as applicants with high FICO scores that could represent higher than average risk
  • The client was projected to double lending volume in the coming year by leveraging the DemystData Score