FinRegLab in the News
Op-Ed: Data Needs to be Wider-Sourced and More Inclusive
www.paymentssource.com
America’s credit system is under serious pressure as it faces the most sudden and severe downturn since the Great Depression. Our CEO Melissa Koide and former President and CEO of FICO Larry Rosenberger released an op-ed titled “Data needs to be wider-sourced and more inclusive” discussing using more financial data for lending, enhancing public policy guidance, and financial exclusion and the COVID-19 effect.
“Even though credit scores play a key role in determining who gets a mortgage and at what terms, the current credit system disadvantages a disproportionate share of low-income consumers who don’t have enough information in their credit files.”
“It is clear just a few weeks into the Biden administration that fair lending and racial equity will return as a central focus of regulators under President Joe Biden.”
FinRegLab in the News
CFPB’S Open Banking Rulemaking Muddled by Dated Finance Laws
news.bloomberglaw.com
“A growing consensus that the CFPB should create regulations on ensuring consumers’ safe sharing of their bank data with finance apps, such as Venmo and Mint, isn’t making the agency’s job any easier.”
FinRegLab in the News
America’s Consumer Credit Reporting System Desperately Needs Reform
www.forbes.com
“For decades, numerous academics, consumer advocates, and legislators have pointed out the importance of consumer credit scores on individuals’ ability not only to obtain credit, but also on housing and loan affordability.”
FinRegLab in the News
Twitter Veteran Launches Credit Score that Digs Deep into Cash Flow
www.americanbanker.com
“The New York fintech startup Harvest began offering a new credit score Thursday that uses artificial intelligence to take into account cash flow, spending habits and financial discipline alongside traditional scoring data to help lenders determine if a potential borrower is creditworthy.”
“How should financial regulators shape their response to the COVID-19 pandemic in overseeing microfinance institutions (MFIs)? What factors should they consider to help poor people and micro- and small enterprises survive the crisis?”
“New York, long the hub of the financial world and an early epicenter of the COVID-19 outbreak, is looking to innovative financial technologies as one source to help its pandemic-battered economy.”
FinRegLab in the News
Pandemic Lending Pushes Community Banks Toward Fintech Fixes
news.bloomberglaw.com
“A federal stimulus program to combat the recent economic downturn is pushing more community banks to embrace financial technology partnerships.”
FinRegLab in the News
Study Suggests Cash Flow Data Does Not Discriminate in Lending Decisions
www.spglobal.com
“Cash flow data can predict the credit risk that individual borrowers pose without discriminating against protected groups, according to recent research.”