Pave

What a year for fintech - and Pave! We’ve come a long way in shaping how lenders think about cashflow-based underwriting. I am so grateful for our amazing team, customers, and partners. 2025 is going to be an insane year of growth.  🚀 In 2024, Pave: - Helped our customers supercharge their lending programs by approving more borrowers while tightening risk  - Proved tailored cashflow scores like the Flexible Rent Score, Credit Card Score, and Personal Loan Score outperforms generic scores - Grew 5x in revenue  - Shortened our sales cycles by 30% as demand for real-time cashflow insights surged - Launched our first SMB-focused cashflow-driven scores and attributes, starting with fuel charge card risk - Scored >20M Americans and SMBs Cashflow-based underwriting is gaining major traction heading into 2025, with regulators and the industry paying close attention 🔍 Proud of what we’ve built with our customers this year. What I love most about this industry is the shared mission and endless collaboration opportunities. Here’s to an exciting year ahead in 2025! 💥

Grateful for the shoutout from @ LendAPI! 🙌 🚀 LendAPI's seamless platform makes it easier than ever for banks and lenders to build smarter, automated cashflow underwriting models. We’re thrilled to work together to transform fragmented data into actionable cashflow analytics, making underwriting faster, more efficient, and more inclusive. Here’s to a future of better lending decisions, powered by #CashflowUnderwriting! 💪 🔗 Check out the blog: https://lnkd.in/ggMTRfaR #Fintech #Underwriting #CashFlow #Automation #Innovation #LendAPI #Pave #CashflowAnalytics #Lending #NonBankLending

Did you know that the largest credit card companies are withholding critical payment information from credit reports? 🤔 According to the CFPB, many major credit card issuers are choosing not to share with the  bureaus how much people actually pay toward their credit card bills each month. 🔗 : https://lnkd.in/ghjN_Kzd Instead, credit reports only show the total balance or the minimum payment due. ▶️ Why does this matter? For consumers, it makes it harder to get better credit offers. Even if you pay more than the minimum—or pay off your entire balance—your responsible behavior isn’t reflected in your credit score. This means you miss out on lower rates and better financial products. For lenders, it creates a major blind spot. Without actual payment behavior, they struggle to identify low-risk, responsible borrowers. This limits their ability to offer competitive rates and products, leading to missed opportunities and higher costs. There’s a way to solve this. At Pave, we identify credit card payment amounts and trends by detecting credit card payments from bank transaction data. We then reconcile these insights with real-time balances and payment due dates provided through Method. Together, we offer: 🧾 A clear picture of how much borrowers are paying each month. 🔍 Insights into whether borrowers are consistently paying off balances, only making minimum payments, or missing payments altogether. 📈 Real-time financial data to help lenders approve more borrowers while managing risk effectively. You can learn more about how we’re transforming lender decision-making with real-time payment insights in our blog post: 🔗 https://lnkd.in/eADqY-HH It’s time for a credit system that rewards responsible behavior and gives lenders the tools they need to make smarter decisions. Let’s pave the way! 🚀 #Fintech #CreditRisk #OpenBanking #CashflowUnderwriting #CashflowAnalytics #CreditCards #AccountConnectivity

Join Pave, Ema Rouf, and Raymond Rouf at Fintech Meetup in March! We can't wait to see you all there. #FintechMeetup #MeetMeAtFINTECHMEETUP https://lnkd.in/g-PxGe3u

The CFPB just raised serious concerns about FICO, and it’s a big deal. 🚨 Consumer Financial Protection Bureau Director Rohit Chopra didn’t hold back, highlighting how FICO's credit scoring system is failing the market. One striking quote from earlier this year: "Mortgage lenders have told the CFPB that costs for credit reports and scores have increased, sometimes by 400%, since 2022." - Chopra But the problems run deeper than just price hikes: 🔺 Limited Scope: FICO only works for people with established credit histories, leaving millions of creditworthy consumers behind. 🔺 Opaque Algorithms: Credit scores remain a "black box," despite their critical role in financial decisions. 🔺 Weak Predictive Value: Lenders find FICO scores aren’t predictive enough to remain as an important input in their models 🔺 Skyrocketing Costs: Lenders are frustrated with FICO’s price hikes, which stifle competition. The message is clear: the future of credit scoring must evolve. At Pave, we’re already building what’s next. Instead of relying on one-size-fits-all models, we’re creating dozens of tailored scores for specific industries and credit products. After all, a small-dollar loan isn’t a mortgage—and it shouldn’t be evaluated like one. The same goes for credit cards, charge cards, merchant cash advances, or business lines of credit. Each product has unique risk factors, and a one-size-fits-all approach just doesn’t work. Lenders using Pave are seeing the difference: ✅ More approvals ✅ Better risk management ✅ Stronger originations Are we finally moving beyond FICO’s dominance? Let’s discuss. 👇 #Fintech #CreditRisk #CreditScoring #CFPB #AlternativeData #CashflowAnalytics #CashflowUnderwriting 🔗 https://lnkd.in/e69SbkV2 

BNPL is booming—but lack of visibility into borrower affordability could put millions at risk. With $9.4B spent on BNPL this holiday season, traditional credit bureau data often misses the mark. BNPL activity is rarely reported to bureaus, and when it is, the data can be delayed or incomplete. This leaves lenders without a full picture of borrowers’ financial liabilities, increasing the risk of approving loans for users who may already be overextended. Pave helps lenders uncover the full picture of borrower affordability by analyzing real-time cashflow data to  identify strong repayment candidates—even among lower-FICO borrowers. This empowers lenders to: ✅ Assess real-time affordability for smarter, responsible credit decisions ✅ Anticipate near-term risks with forward-looking views of income and expenses ✅ Build precise risk models that reduce defaults and optimize credit limits ✅ Increase approvals by identifying strong repayment candidates Lenders leveraging Pave’s cashflow analytics can expand credit access responsibly while reducing defaults and protecting their bottom line. As the BNPL market grows rapidly, the future of credit modeling lies in real-time cashflow analytics. With every data point we process, we improve our predictive models and help lenders responsibly extend credit, expand approvals, and protect their bottom line. What do you think? Is your organization prepared to meet the growing demand for tailored, data-driven lending models? Let’s discuss! 🚀 #BNPL #CashflowAnalytics #BorrowerAffordability #CreditRisk #LendingInnovation #Fintech #CashflowUnderwriting

Is Fintech Back in 2024? Here’s What the Numbers Say 🚀 Chart courtesy of F-Prime Capital Q3 2024 calendar-year earnings from companies like SoFi, Affirm, Upstart, MoneyLion, Dave, OneMain Financial, and LendingClub show a clear pattern: fintech is thriving again after a challenging few years. Here are the key trends fueling this resurgence: 🔑 Post-COVID Fintech Evolution: Smarter Data, Stronger Models Fintechs have adapted their underwriting approaches post-COVID, applying hard-earned lessons from the pandemic to build more resilient and precise models. By leveraging alternative data and cashflow analytics, they’re reducing defaults, expanding approvals, and growing responsibly—all while better serving their customers. ▶️ Upstart: Reported $162 million in revenue (20% YoY growth) and $1.6 billion in loan originations (30% YoY growth) during Q3 2024. ▶️ Dave.com: Leveraged its CashAI model to analyze over 180 alternative data points, driving a 41% revenue increase during Q3 2024, while expanding credit access and reducing reliance on traditional credit scores. 📈 From Defense to Growth Many companies have shifted from “playing defense” to growth mode, reaccelerating loan originations and expanding their customer bases. This pivot reflects renewed confidence in their ability to manage risk effectively. ▶️ SoFi: Added 756,000 new members in Q3 2024, bringing its total membership close to 9.4 million. Its expanded product suite across banking, lending, and wealth management drove $689 million in adjusted net revenue. 💰 Reaching New Consumer Segments As traditional banks pull back on lending, fintechs are stepping in to serve overlooked markets—such as small-dollar loans, gig workers, and near-prime borrowers—unlocking new growth opportunities. ▶️ Affirm: In July to September 2024 (its Q1 fiscal year 2025), Affirm reported a 41% revenue increase to $698 million and a 35% rise in gross merchandise volume to $7.6 billion. By expanding buy-now, pay-later partnerships, Affirm has enabled merchants to reach near-prime and younger consumers who have fewer options in a tightening credit market. Fintech is proving its resilience, finding new ways to adapt, and capturing market share in a dynamic environment. If Q3 2024 is any indication, the next chapter of fintech will be defined by smarter, faster, and more inclusive financial services. What trends are you seeing in fintech right now? Let’s discuss! 🌟 #Fintech #AlternativeData #CashflowAnalytics #InclusiveFinance #CreditInnovation #LoanGrowth #FinancialServices #DigitalTransformation #CashflowUnderwriting

Is ACH risk a fraud problem or a credit risk problem? Our view: it’s both. 📊 Chart courtesy of Nacha https://lnkd.in/gx_2XNCZ While many tackle the fraud and identity problem, the credit risk tied to timing and settlement is often overlooked. At Pave, we’ve been working with lenders and payments providers to address ACH through the lens of cashflow analytics and credit risk. The credit risk problem is: will funds will be in the account when the ACH settles? For example: ▶ A lender attempts to pull an ACH payment from a borrower’s account, but by the time the transaction clears, the funds are no longer available. ▶ An investment app allows a user to deposit funds via ACH and start trading immediately. The ACH clears without sufficient funds in the account, and the app bears the loss. Using real-time bank data, Pave identifies transaction behaviors that indicate higher risk of ACH returns: 🕑 More accurate timing: By analyzing cashflow patterns, we help predict whether funds will be available when ACH transactions settle, bridging the timing gap inherent in ACH processing 💡 Proactive Risk Mitigation: We enable lenders and platforms to offer real time ACH settlements and reduce NSF events and mitigate financial losses. 📊 ACH Risk Score: With a growing dataset of ACH returns, we’re creating a predictive ACH Risk Score to help lenders and payment providers assess the likelihood of returns and manage timing risk more effectively. ACH risk goes beyond fraud—it's about timing, credit risk, and cashflow dynamics. Conversations with lenders and payments companies at Money2020 confirmed it: ACH risk needs a credit-driven approach. Facing high ACH returns or looking to offer real-time settlements? Let’s chat! #Money2020 #ACHRisk #PaymentOptimization #Fintech #Fraud

Greatly enjoyed talking credit data and the issues impacting the accessibility of affordable credit with Peter Renton on his podcast. Give it a listen, and also give a listen to all of Peter's other great episodes!

Lending was front and center at #Money2020, with 8️⃣ trends shaping the industry's future: 1️⃣ Growth in Earned Wage Access – More companies are offering earned wage access. 📊 Chart courtesy of Consumer Financial Protection Bureau 💡 Pave’s EWA-specific Cashflow Scores and Attributes help providers assess repayment likelihood and affordability, enabling personalized solutions that promote long-term stability. 2️⃣ Traditional banks are retreating from non-prime consumer and SMB lending, while sponsor banks deepen ties with fintechs to fill these gaps. 💡Pave’s sponsor bank partnerships provide real-time cashflow analytics tailored to non-prime borrowers, enabling responsible lending. 3️⃣ Credit + Open Banking Data – Lenders are proving that combining credit reports with bank transaction data is enhancing risk models. 💡 Pave customers have seen our tailored cashflow scores and attributes consistently increase approvals by a minimum of 10% without increasing defaults, beating models that rely solely on Vantage and credit bureau attributes. 4️⃣ Near-Term Risk Assessment – Lenders need real-time predictions to manage delinquencies, preventing post-pandemic loan book declines. 💡 Pave’s Cashflow Scores provide timely insights, helping lenders prevent costly delinquencies. 5️⃣ Intensifying Bank Aggregator Competition –  New 1033 rules will drive competition, reduce costs, and improve connectivity. 💡 With lower aggregation costs, can leverage cashflow underwriting more effectively. Pave’s analytics remain agnostic to the underlying aggregator, giving lenders maximum flexibility. 6️⃣ No-code lending Infrastructure –  No/low-code credit platforms are making managing lending programs easier than ever. 💡 Lenders can turn on Pave’s attributes and scores directly within platforms like Taktile, LendAPI (Techstars '24), Alloy, Oscilar without any integration work to easily backtest and launch in production. 7️⃣ Vertical SaaS Adding Lending – Industry-specific SaaS platforms are increasingly embedding lending solutions to meet the unique needs of their sectors. 💡 Pave's pre-built attributes and scores tailored to specific industries (e.g., healthcare, fleets, trucking), allow Vertical SaaS providers to quickly launch lending programs aligned with their clients' needs. 8️⃣ Lower Cost of Capital –   Lenders are finally starting to see better terms with capital providers, and it’s spurring growth opportunities, especially for increasing approvals to new and underserved borrower segments across the lending landscape (hopefully this trend continues with the new administration). 💡Pave’s cashflow analytics enable lenders to serve underserved borrowers with less risk, expanding access to affordable credit. The next era in lending is here, marked by data-driven precision and new opportunities to expand financial access. #Money2020 #LendingTrends #Fintech #FinancialInclusion #Money2020 #EarnedWageAccess #VerticalSaaS