Building a credit profile is an important steppingstone to financial well-being, yet millions of UK consumers are held back by legacy credit bureaus. Consumers deserve a credit building process that's equally fast, fair, and reflective of their true financial health – not one mired in stale and incomplete data.
Our mission at Infact is to drive financial inclusion by increasing the frequency and accuracy of credit information being shared between lenders, while also safely accommodating newer products like Buy Now, Pay Later (BNPL) data into credit models.
This article runs through why credit profile building is so inefficient today, and what we are doing about it.
For decades, legacy credit bureaus have been the gatekeepers of credit information, but their methods are increasingly out of step with the speed of today’s credit market.
These limitations can have serious consequences. Consumers working hard to build or improve their credit scores must wait over a month to see the results of their efforts reflected in their credit reports. Outdated information can increase their cost of borrowing unnecessarily or even worse cause them to miss out on achieving life goals, such as getting a mortgage to buy a house.
For lenders, this outdated information leads to suboptimal decision-making. They might turn away good customers or take on higher-risk ones based on inaccurate data, impacting both their bottom line and consumer financial health.
We dive deeper into these broad challenges in why we started Infact.
We need a more dynamic and responsive credit reporting system with accurate, real-time data to help consumers speed up their credit profile building.
Consumers should have the ability to seize time-sensitive opportunities and access mainstream financial products that break cycles of financial exclusion.
Lenders should be able to identify and respond to changes in a consumer's credit profile more rapidly, potentially reducing default rates and improving overall portfolio health.
Buy Now, Pay Later (BNPL) services are not just convenient for consumers; they're also reshaping how credit profiles can be built and improved, driving better financial inclusion. We believe that 0% interest BNPL transactions could be the single biggest driver of financial inclusion since credit cards.
They’re cheaper, faster and safer, and more accessible to consumers who might not qualify for traditional credit products yet.
The frustrating thing is that legacy bureaus cannot safely or accurately distribute this data to lenders which means BNPL is not considered for credit profile building. This results in lost opportunity for both lenders and consumers.
When BNPL data is reported in real-time, it becomes a powerful tool for rapid credit profile building and rehabilitation.
At Infact, we're leveraging cutting-edge technology to provide a solution to these challenges. Our products offer real-time insights for a more accurate, up-to-date picture of consumer creditworthiness:
This real-time approach offers significant benefits across the board. For consumers, our solution enables faster credit building, improved financial visibility, and fairer credit decisions. It protects against over-indebtedness, allows for quicker corrections to credit profiles, and accelerates credit rehabilitation. These improvements empower consumers to make informed financial decisions and potentially access better financial products sooner.
Lenders benefit from enhanced risk assessment capabilities, improved customer acquisition, and increased operational efficiency. They can create more accurate credit reports, gain a competitive edge in decision-making and pricing, and better meet Consumer Duty requirements. By using Infact's real-time data, lenders can confidently extend credit to a broader range of consumers while promoting responsible lending practices, ultimately contributing to a more dynamic and efficient credit ecosystem.
As the financial world continues to evolve at an unprecedented pace, it's clear that the old ways of credit reporting are no longer sufficient. Real-time credit data, including data from newer financial products like BNPL, is not just an innovation – it's a necessity for a fair, efficient, and responsive financial system.
The future of credit reporting is real-time, and at Infact, we're leading the charge. As we continue to expand our network of data providers, including neobanks, non-bank credit cards, credit unions, and BNPL providers, the power and accuracy of our real-time credit risk assessment will only grow. This network effect is key to our vision of a more dynamic, responsive credit reporting system that benefits both consumers and lenders.
Join us on our mission to help build a future where credit profiles are more accurate, more responsive, and more inclusive – a future where financial opportunities are opened up to more people, more quickly than ever before.