Lenders Must Go Beyond Credit Scores to Help Young Customers

Unless lenders go beyond credit scores and use first party and permissioned data, they will continue to have difficulty approving no FICO and thin FICO applicants. This affects upper class, middle class, working class, and underbanked Americans.

Every lender faces this challenge and at Conductiv, we're proud to be helping CDFIs, credit unions, banks, and fintech lenders provide a better experience to applicants and " do less work while making more loans."

According to The Financial Brand, financial firms are making it harder for people with thin credit files to secure their first credit card. A former bank executive with financial wellness expertise details how his daughter struggled — even with his guidance — and suggests how firms can improve the experience to compete for the 45 million consumers who are new to credit.

In this featured piece, Evan Siegel from eGain walks bankers through the failures of modern credit building programs and credit cards, and how financial institutions can resolve those struggles for young consumers.

"If we struggled, imagine how other students, young adults, and immigrants that comprise the new-to-credit segment stumble through the first card gauntlet."

Read the story from The Financial Brand