--- title: Fintechs Lead Banks in Expanding Credit Underwriting description: Student risk becomes the foundational basis to underwrite private student loans at Einstein Higher Edu Solutions. image: https://www.einstein.consulting/hubfs/Student_HeroImg_border.png --- [Skip to content](https://www.einstein.consulting/blog/einstein-higher-edu-solutions-is-modernizing-underwriting-for-private-student-loans-1-0-0-0-0-0-0#main-content) - [Login](http://admin.einstein.consulting) - [Developers](http://docs.einstein.consulting) - [About us](https://www.einstein.consulting/about-us) - [Blog](https://www.einstein.consulting/blog) - [Contact](https://www.einstein.consulting/contact) Close - [For CollegeStudents](https://www.einstein.consulting/student) - [For Lenders](https://www.einstein.consulting/lender) - [Einstein Risk Score](https://www.einstein.consulting/einstein-risk-score) - [About us](https://www.einstein.consulting/about-us) - [Blog](https://www.einstein.consulting/blog) - [Contact](https://www.einstein.consulting/contact) - [Developers](http://docs.einstein.consulting) [![logo](https://www.einstein.consulting/hubfs/_Toolkit/einstein_logo_blue.svg "logo")](http://einstein.consulting) - [For College Student](https://www.einstein.consulting/student) - [For Lenders](https://www.einstein.consulting/lender) - [Einstein Risk Score](https://www.einstein.consulting/einstein-risk-score) [Aaron Pisacane](https://www.einstein.consulting/blog/author/aaron-pisacane) 03 May 2022 2 min read # Fintechs Lead Banks in Expanding Credit Underwriting The [Wall Street Journal](https://www.wsj.com/articles/financial-technology-firms-tap-ai-to-reach-more-borrowers-11651483802?mod=itp_wsj&ru=yahoo) 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.   Solution The [Einstein Risk Score](https://www.einstein.consulting/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 [Pisacane@Einstein.Consulting](mailto:Pisacane@Einstein.Consulting) (917) 968-6483       ## RELATED ARTICLES ### [Aaron Pisacane 14 Jul 2023 6 min read Biden's Updates to the Income Driven Repayment Plan for Student Loans Impacts to Private Student Loan Repayment Performance More Updates to Direct Federal Student Loans Besides Repayment Restart ... Start Reading](https://www.einstein.consulting/blog/einstein-higher-edu-solutions-is-modernizing-underwriting-for-private-student-loans-1-0-0-1-0-0-0-0) ### [Aaron Pisacane 07 Jul 2023 4 min read Are your private student loan programs focused on undergraduate growth programs? Five-Year Undergraduate Enrollment Trends Spring Enrollments: 5 Year Trends at Public 4 Year Universities Enrollment data ... Start Reading](https://www.einstein.consulting/blog/einstein-higher-edu-solutions-is-modernizing-underwriting-for-private-student-loans-1-0-0-1-0-0-0) ### [Aaron Pisacane 30 Jun 2023 5 min read 6/30/23 UPDATE: Impacts to Private Student Loans When Federal Student Loan Payments Restart in October 2023 Are strategies in place to protect student loan performance? Impacts to After-Tax Income by Federal Student Loan Payments As ... 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Hancock Street Philadelphia, PA 19123 - [Einstein Higher Edu Solutions](https://www.einstein.consulting) - [For College Students](https://www.einstein.consulting/student) - [For Lenders](https://www.einstein.consulting/lender) - [Einstein Risk Score](https://www.einstein.consulting/einstein-risk-score) - [About us](https://www.einstein.consulting/about-us) - [Blog](https://www.einstein.consulting/blog) - [Contact](https://www.einstein.consulting/contact) Einstein Higher Edu Solutions © All rights reserved - [Privacy Policy](https://www.einstein.consulting/privacy-policy) - [Powered by Ander Group](https://www.ander.group/en) ```json { "@context" : "http://schema.org", "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "", "addressLocality" : "Philadelphia", "addressRegion" : "PA", "postalCode" : "19123", "streetAddress" : "917 N. Hancock Street" }, "email" : "hello@power.com", "knowsLanguage" : "en", "logo" : { "@type" : "ImageObject", "url" : "https://19883800.fs1.hubspotusercontent-na1.net/hubfs/19883800/_Toolkit/einstein_logo_blue.svg" }, "name" : "Einstein Higher Edu Solutions", "telephone" : "+49 (0) 89 123 456", "url" : "https://www.einstein.consulting/blog/einstein-higher-edu-solutions-is-modernizing-underwriting-for-private-student-loans-1-0-0-0-0-0-0" } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "abstract" : "Student risk becomes the foundational basis to underwrite private student loans at Einstein Higher Edu Solutions.", "author" : { "@type" : "Person", "name" : "Aaron Pisacane" }, "dateModified" : "May 3, 2022 8 PM", "datePublished" : "May 3, 2022 6 PM", "headline" : "Fintechs Lead Banks in Expanding Credit Underwriting", "image" : "https://19883800.fs1.hubspotusercontent-na1.net/hubfs/19883800/Student_HeroImg_border.png", "inLanguage" : "en", "keywords" : "[alternative data, credit underwriting]", "mainEntityOfPage" : { "@type" : "WebPage" }, "name" : "Fintechs Lead Banks in Expanding Credit Underwriting", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://19883800.fs1.hubspotusercontent-na1.net/hubfs/19883800/_Toolkit/einstein_logo_blue.svg" }, "name" : "Einstein Higher Edu Solutions" }, "text" : "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. Solution 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 Pisacane@Einstein.Consulting (917) 968-6483", "url" : "https://www.einstein.consulting/blog/einstein-higher-edu-solutions-is-modernizing-underwriting-for-private-student-loans-1-0-0-0-0-0-0", "wordCount" : "615" } ```