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Aaron Pisacane 03 May 2022 2 min read

Fintechs Lead Banks in Expanding Credit Underwriting

The Wall Street Journal reported on May 3, 2022 that Financial Technology Firms Tap AI to Reach More Borrowers.  It was reported that more diverse sets of data and algorithms have enabled fintech companies to create alternative credit scores for the benefit of underserved applicants.    

More diverse sets of data

Unlike 10 years ago, there is access to more data in a digital format that allows for instant credit decisioning.  Still today banks continue to manually process applicant uploaded documents.  This is expensive and time consuming, which inhibits instant credit decisioning. But now, Fintechs are building third-party data integrations to automate this process.  

Algorithm to compile a credit score

The next step is bring the data inputs into a proprietary algorithm to produce a credit score.  The algorithm's output can be a score that follows the familiar FICO scale of 300-850.  

Decisioning at scale 

Fintechs industrialize the end-to-end process to produce a proprietary credit score that is economical to the lender.  It would be time consuming and expensive for any one lender to re-create this process alone.  It also requires specific credit and technology expertise.  


The Einstein Risk Score gives private student loan lenders access to an instantaneous, college student risk score 'at scale'. 

There are many business cases depending on the sophistication of a lender's origination and pricing strategies:

1.  Application Credit Decisioning 

Lenders can supplement the cosigner's FICO score with the borrower's Einstein Risk Score to arrive at an improved joint credit decision.

2.  Re-Decision Declined Applications

After a lender declines a loan application due to the cosigner's credit, a lender can request an Einstein Risk Score to determine which applications to approve. 

3.  Re-Price Loans After Loan Offers are Declined or Remain Unaccepted 

After an applicant fails to accept a lender's loan offer, a lender can request a borrower's Einstein Risk Score to determine when to provide a lower interest rate.   


I look forward to collaborating with lenders in helping hardworking students realize their dreams!   


Aaron Pisacane


(917) 968-6483