A credit? Yes! But for whom?

This is the new challenge financial entities are delving into: how to make credit possible for everyone, regardless of their credit score.

Have you ever heard of the Roundtable for Economic Access and Change (REACh)? In 2020, the OCC launched this project with the objective of offering credit to people who could not obtain it, representing 50 million people in the U.S.

How? By searching for and developing new credit assessment methods. For example, analyzing consumer cash flows is now a way of determining a client’s eligibility for a credit card.

There are many pilot projects underway to test the best solutions to reach 50 million people who currently do not have the opportunity to obtain credit from financial entities.

One thing is certain: even during a recession, customers are still willing to consume and make payments. Thus, this project aims to ensure that people are not left behind.

Souce: John Hintze, 2023 “Thinking outside the (credit) box”, bankingjournal.aba.com, July, 20th 2023, https://bankingjournal.aba.com/2023/07/thinking-outside-the-credit-box/