Fintech Insider Podcast by 11:FS 920. Insights: How fintech is helping us get better at borrowing money
Dec 5, 2024
Join Rob Pasco, GM of Credit at Curve; Sophie Heriot, Account Director at Nova Credit; and Tom Davies, VP of Marketing at Yonder for a lively discussion on the evolving landscape of digital lending. They dive into how fintech is reshaping personal borrowing, emphasizing the use of alternative data for better credit assessments. The conversation also highlights the importance of demystifying financial jargon and building a fairer financial system to enhance consumer understanding. Discover the global perspectives on credit and the future of lending practices!
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Fintech's Lending Revolution
- Fintech transformed lending from personal, discretionary decisions to data-driven, faster credit scoring.
- This shift has led to misclassification and mispricing, but also new credit products like Buy Now, Pay Later.
Consumer Confusion on APR
- Most consumers, and even some financial professionals, misunderstand how lending and APR work.
- Complex regulations intended to protect consumers often cause more confusion than clarity.
Limitations of Credit Scoring
- Traditional credit scoring excludes many people due to limited or no credit history.
- Alternative data like bank transactions and rent payments help create a more complete credit picture and increase inclusion.