Vergent LMS forges partnership to offer lenders credit risk insights

16 Feb 2024

US-based fintech lending platform Vergent LMS has partnered with EDGE, which provides cash flow underwriting and risk assessment services for lenders serving subprime customers.

The collaboration will enable Vergent to provide lenders with alternative credit risk analytics and scoring, by looking beyond traditional credit scores at the financial activities and behaviours from consumers’ checking and savings accounts.

EDGE has established connections with nearly every financial account in the US, enabling cash flow underwriting, income verification, and credit risk assessment, powered by Open Banking.

The new insights offered by Vergent will enable lenders to make more informed decisions regarding applicants with credit reports that fall below the prime watermark.

“Automation is a key path to growth for lenders. Our partnership with EDGE enriches our platform with customer credit risk assessments, data, and overall business goals,” said Scott Putnam, chief executive officer of Vergent. 

“Through this collaboration, we’re able to provide another world-class feature that enhances customer service, while also meeting automation needs for lenders and borrowers alike.”

Vergent’s platform offers lenders automated risk decision-making through customisable software settings that manage multiple credit risk thresholds.

Through Vergent, lenders will gain access to a comprehensive suite of APIs for integration and automation. Additionally, they will have access to a lender portal that streamlines processes and provides unlimited support for tech teams and customers.

Furthermore, the partnership eliminates the need for an account or routing number.

“From application to origination to servicing, our technologies complement each other to ensure lenders make lending decisions based on verified real-time data about an applicant’s ability to repay,” added Putnam.

“By delivering these insights automatically, EDGE and Vergent are able to help their customers make better approval choices and improve loan terms.”

Cashflow underwriting has a role to play in expanding credit access for the nearly 50 million US adults considered ‘thin file’, or those with no credit file at mainstream credit bureaus, as well as those with credit scores below the prime threshold.

“Vergent and EDGE are together at the forefront of the financial inclusion movement, using income, spending, and balance behaviours to help meet the needs of creditors and borrowers alike,” said Brian Reshefsky, chief executive officer of EDGE.

“We’re confident that seamless delivery of these real-time insights to Vergent customers will help more lenders see the value in cash flow underwriting.”