The Score

According to the World Economic Forum, 85% of financial services organizations are using AI in some capacity. It’s no secret the artificial intelligence ‘arms race’ is impacting virtually every industry, especially financial services. It’s also creating interesting and novel challenges for every industry, both in its application and its usage. It’s often said that technology advances faster than regulation. Is that the case with artificial intelligence, or are the rules of the road kee...

To date, nearly all mortgage loans continue to use outdated credit scoring models, though in other loan categories, much newer, more predictive, and inclusive models are most commonly used. But the mortgage industry is advancing. By next year, all mortgage loans backed by Fannie Mae and Freddie Mac will require a VantageScore 4.0 credit score. In advance of this change, Bank of America recently issued an independent research report analyzing the VantageScore 4.0 mortgage data set. ...

It's been called the “$1 trillion opportunity.” Currently, the housing market is paralyzed. Homeowners are left out of the market due to a lack of inventory or—even worse—can’t access it due to outdated credit scoring models that exclude them. Recent VantageScore research found an estimated $1 trillion of pent-up growth potential in the form of borrowers who have historically been left out of homeownership opportunities due to unfairly restrictive, decades-old scoring models. But that's...

For markets to operate efficiently and for consumers to receive the best services, it is critical that competition exists in the financial services industry. Credit unions, or not-for-profit financial cooperatives, have unique structural differences that allow them to pass profits onto their member-depositors in the form of lower loan interest rates, higher yields on savings, and fewer or lower fees. With historically high interest rates deeply impacting household budgets and consumers’...

CreditGauge, VantageScore’s monthly analysis of consumer credit health, found that in April 2024, delinquencies declined for a second straight month. To date, consumers are weathering economic pressures fairly well. But is this proof of a climb out of a delinquency-heavy phase, or are household budgets on a bumpy roller coaster ride longer-term? Atif Mirza is Vice President of Digital at VantageScore, where he manages the VantageScore suite of digital tools for lenders – CreditGauge, Inclusio...