Customer loans may fall delinquent for myriad reasons; though it generally boils down to lost employment/income or short-term difficulties requiring customers to prioritize who gets paid. It is this second category – when borrowers choose to pay one creditor over another – where Paywallet’s proprietary technology ensures lenders stay “first in line” for customer payments.
In our incubator portfolio we have seen a weighted average 660bps improvement in bad rates vs. historical FICO results. Bad rates are defined as 90+ day delinquent charged off or bankrupt. Even within prime FICO ranges we’ve seen 9.5% improvements in 90+ bad rates.
Incubator Portfolio Actual Performance vs. Generic FICO Standards Evaluation at 9 Months On Book, Bad Rate defined as 90+ days past due, charged off, or bankrupt.
1 Based on CFPB Quarterly Consumer Credit Trends publication dated December 2019,