Using better data allows lenders to safely approve more underserved consumers with thin or no credit histories, says Paul DeSaulniers, director of VantageScore for Experian (at left).
He says using the right tools can help lenders approve 7% more auto loans that otherwise would be declined.
Mike Harris, managing partner with Core Innovation Capital (middle), says subprime auto loans for new cars in 2012 exceeded pre-recession totals.
Neo CEO Navin Bathija says his company helps thin-credit consumers secure auto loans at better rates by analyzing their online banking data. This presents an accurate reflection of their risk to the lender.
Neo bases credit decisions on consumers’ ability to make their loan payments, not on credit score.
As millennials emerge in the workplace, CU leaders modify their management approach and expectations.