Credit Builders Alliance Launches New Financial Inclusion Pilot Program Using VantageScore 4plus™ Open Banking Credit Score

Key Takeaways:

• Expanding Financial Inclusion: With support from JPMorganChase, CBA and VantageScore® are launching a financial inclusion pilot program utilizing the VantageScore 4plus™ credit score
• Innovations in Alternative Data: The program works with ten CBA nonprofit members to test the VantageScore 4plus open banking data credit score which uses the latest innovations in consumer-permissioned bank data
• Increased Predictive Power: Using VantageScore 4plus, lenders can more accurately determine consumer credit risk by gaining permission from consumers to access bank account data to generate a more predictive credit score

WASHINGTON and SAN FRANCISCO, Sept. 18, 2024 /PRNewswire/ -- VantageScore and Credit Builder's Alliance (CBA) today announced a new program that will help nonprofit lenders launch a VantageScore 4plus credit score pilot program and study its impact on increasing financial inclusion and credit access for underserved communities. The program, with support for technical assistance from JPMorganChase, will select and lead a cohort of ten CBA nonprofit members to test the VantageScore 4plus credit score that uses both credit report data and alternative open banking data to generate a more predictive credit score, especially for underserved or "thin" credit file consumers.

Launched for pilot earlier this year, VantageScore 4plus incorporates the latest innovations in consumer-permissioned bank data, creating a more inclusive and predictive credit scoring model. This new credit score can help nonprofit lenders better serve their clients by adding new information that can more accurately determine their credit risk by incorporating the customer's bank account data into the credit score.

"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, CEO 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."

Key Program Highlights:

• Expanding Financial Inclusion: VantageScore and CBA will select up to ten CBA members for the study that serve low to moderate-income and/or Black, Indigenous, and People of Color (BIPOC) borrowers. The two organizations will work with the lenders to track the potential impact of VantageScore 4plus on lending outcomes.
• Accelerating VantageScore 4plus Adoption: Program participants will work closely with VantageScore and CBA on the implementation of the VantageScore 4plus pilot program. Individualized technical assistance will ensure that participants are able to realize the full benefits of adopting consumer-permissioned bank data. To help scale their impact, participants will also receive exclusive benefits including a $10,000 grant, CBA's CREDIT AS ASSET™ signature training, and entry to the 2025 CBA Annual Symposium.

CBA lender members who would like to learn more can register for an optional information session on September 26 at 1pm CT or October 1 at 10:30 am CT. Otherwise, they can apply here by Friday, November 8th.

"By testing the credit score impact with nonprofit 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, SVP, 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's technical assistance for this pilot and its members is supported by JPMorganChase. For more information on the opportunity, please visit www.creditbuildersalliance.org.

To learn more about implementing VantageScore 4plus, please visit https://vs4plus.vantagescore.com.

About Credit Builders Alliance
Credit Builders Alliance (CBA) is an innovative national nonprofit network dedicated to building the capacity of a diverse and growing network of hundreds of nonprofits across the country. CBA was created by and for our nonprofit members as a bridge to the modern credit reporting system to help millions of individuals with poor or no credit participate in the mainstream financial system by building credit. CBA's mission is to bridge the gap between equity-focused nonprofits and credit bureaus to unlock credit as an asset for all.

About VantageScore®
VantageScore is the fastest-growing credit scoring company in the U.S. and is known for the industry's most innovative, predictive, and inclusive credit score models. In 2023, usage of VantageScore increased by 42% to more than 27 billion credit scores. More than 3,400 institutions, including 8 of the top 10 banks, use VantageScore credit scores to provide consumer credit products including credit cards, auto loans, personal loans and mortgages. The VantageScore 4.0 credit scoring model scores 33 million more people than traditional models. With the FHFA mandating the use of VantageScore 4.0 for Fannie Mae and Freddie Mac guaranteed mortgages, the company is also ushering in a new era for mortgage lending and helping to close the homeownership gap.

VantageScore is an independently managed joint venture company of the three Nationwide Consumer Reporting Agencies (NCRAs) – Equifax, Experian, and TransUnion.

View original content to download multimedia: https://www.prnewswire.com/news-releases/credit-builders-alliance-launches-new-financial-inclusion-pilot-program-using-vantagescore-4plus-open-banking-credit-score-302251831.html

SOURCE VantageScore