Two rapidly expanding Tech companies leading the Northern powerhouse digital revolution have joined forces to offer increased credit application accuracy to lenders in a move which will help the industry became less reliant on traditional methods of credit scoring, fraud scores and identity checks.
The Nostrum Group which provides digital lending technology to banks, finance companies and retail brands is integrating with Hello Soda’s PROFILE software platform which will increase credit application accuracy, and improve inclusiveness.
This marks the beginning of an exciting relationship to improve lending services for consumers as demand for digital and more accurate and timely credit scores continues to grow.
Both companies have experienced incredible growth with Nostrum celebrating 812% growth in revenue in five years and Hello Soda growing its team 5-fold in just a few months as well as opening a New York office.
James Blake, CEO founder of Hello Soda said: “We are really pleased to be working with the Nostrum Group and for more lenders to have access to this cutting edge technology that benefits both them and consumers. Traditional credit rating models are not sufficient when assessing a loan applicant’s credit worthiness and lenders need to take into account the entire fabric of a person’s life. For lenders, they get a more accurate and up-to-date understanding of a person’s lifestyle, finances and habits and for loan applicants it means an increased chance of getting a loan that is more suited to their needs.”
Commenting on the alliance, Richard Carter CEO of Nostrum said: “When Nostrum selects companies to work with we look for innovators, those who not only understand the market but challenge convention and strive for improvement. Hello Soda is one such company who are working to close the gap in the credit industry and provide a human element to automated or underwritten decisions.”
The Hello Soda cloud-based product PROFILE predicts a person’s creditworthiness based on structured and unstructured data, enabling lenders to make more accurate decisions. It interfaces with different data-sources and third party data-providers to collect the digital footprint of a consumer, identifying personality traits from language-used across social media such as Facebook, LinkedIn, Twitter and Instagram, and applies psycholinguistic analysis to determine the likelihood of an applicant repaying a loan. By cross matching an applicant’s various social profiles, always with consumer consent, it can assess key metrics such as employment status, approximate address, pay date, and any other life changing events creating a more accurate resolution.
Richard Carter added: “The digital era has changed the way consumers operate, therefore the way in which we conduct business needs to evolve along with them. What’s important for Nostrum is that we embrace forward thinking companies like Hello Soda and work together to transform the industry. We believe there has never been a better time for organisations to join the data revolution.”
Existing Nostrum Group customers will be able to take advantage of the social data scoring powered by Hello Soda, allowing them to make more accurate and informed decisions on lending applications.