For people without a formal credit score, like students and migrants, getting access to a credit card or loan can be a big issue -- something this credit scoring service is trying to address. Startup Aire gives those in the 'thin line' category a fairer credit rating based on the data they submit themselves. By not focusing on past repayment history, Aire is able to help customers get access to important financial products.
In the United States and UK, 25% of adults fall into this category. After they submit their information, Aire's API encrypts and processes the data using an algorithm to look at their employment background, decision-making and cognitive abilities to decide whether they are fit for financial services including credit cards, loans and mortgages.
Aire is currently in beta.
Fairer Credit Rating Startups
Aire's Credit Scoring Bases Rates on Customer-Submitted Data
Trend Themes
1. Alternative Credit Scoring - Disruptive innovation opportunity: Develop new credit scoring models that rely on customer-submitted data instead of traditional repayment history.
2. Inclusionary Financial Services - Disruptive innovation opportunity: Create financial products and services that cater to individuals with thin credit files, such as students and migrants.
3. Data-driven Decision-making - Disruptive innovation opportunity: Harness customer-submitted data and advanced algorithms to make more accurate and fair decisions in various industries.
Industry Implications
1. Fintech - Disruptive innovation opportunity: Develop technology-driven solutions to improve accessibility and fairness in credit scoring and financial services.
2. Education - Disruptive innovation opportunity: Create educational programs that empower individuals to improve their creditworthiness and financial literacy.
3. Real Estate - Disruptive innovation opportunity: Create innovative mortgage lending models that consider alternative credit scoring methods to expand access to homeownership.