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,

It is clear that Paywallet substantially improves repayment performance and expands the customer population eligible for credit at rates that make sense for both the lender and their customers. This in turn can lead to improvement in approval rates of over 15-25% without compromising portfolio quality.