VantageScore, Credit Builders Alliance launch financial inclusion program
Ellie Duncan | News
20 Sep 2024
US-based Credit Builders Alliance (CBA) and VantageScore have teamed up to launch a financial inclusion pilot program among non-profit lenders, with support from JP Morgan Chase.
Through the program, a cohort of 10 CBA non-profit members will be selected to test the ‘VantageScore 4Plus’ credit score, which uses both credit report data and Open Banking data to generate a “more predictive” credit score.
The program will study its impact on increasing financial inclusion and credit access for underserved communities.
JP Morgan Chase will provide technical support assistance.
VantageScore released its latest credit scoring model ‘VantageScore 4plus’ in May this year. ‘VantageScore 4plus’ is compatible with all major aggregator APIs and works for any credit report from Experian, TransUnion and Equifax.
“The VantageScore 4Plus model and the bank account data it takes into account delivers a more accurate credit score, which facilitates access to credit for people who have previously been declined,” said Dara Duguay, chief executive officer of Credit Builders Alliance.
“We are excited to work with VantageScore on this program, and to share the impact that alternative data, like deposit data, can have on expanding access to the financial services marketplace for consumers in need.”
The 10 CBA members chosen for the study will be those that serve low to moderate income and/or Black, Indigenous, and People of Color (BIPOC) borrowers, with VantageScore and CBA working with the lenders to track the potential impact of ‘VantageScore4Plus’ on lending outcomes.
“By testing the credit score impact with non-profit lenders, this initiative will showcase the positive impact that VantageScore 4Plus credit score model can have on lending outcomes for underserved borrowers,” said Jeff Richardson, senior vice president, marketing at VantageScore.
“VantageScore and CBA share a mission and a commitment to expanding access to credit for traditionally excluded populations, and we’re thrilled to work together on this important initiative.”
CBA and VantageScore have said they will “work closely” with the program’s participants on the implementation of the pilot, while individualised technical assistance will ensure they are able to fully realise the benefits of adopting consumer-permissioned bank data.
