US-based marketplace Prosper has announced embedding FICO Scores into its new Prosper Card, extending credit services to over 200,000 near-prime customers
The move will enable Prosper to manage credit line changes based on the customers’ latest FICO Score.
Prosper uses monthly updated FICO Scores to manage credit risk and meet the rising demand for credit from creditworthy customers. As of March 2023, Prosper has handled credit limit adjustments for more than 25,000 customers, with more than 70% being granted increased credit limits.
David Kimball, CEO of Prosper, said: “Millions of consumers in the U.S. are currently credit invisible and need a path to access credit.
“At Prosper, financial inclusion is at the heart of our business and by utilising FICO’s reliable and predictive scores as an input to our models, we are able to identify and offer access to affordable financial solutions to improve consumers’ financial health as they move across the credit spectrum”, Kimball added.
FICO is a fintech which uses predictive analytics, artificial intelligence (AI) and data science to improve operational decisions.
In May this year, the company partnered with Teradata to bring AI-powered decision automation and optimisation to financial services, healthcare, retail, manufacturing and travel.
Nikhil Behl, chief marketing officer at FICO, also welcomed the partnership with Prosper.
“Access to credit is more important than ever as people are navigating challenging times and seeking to take control of their finances”, Behl said. “FICO Scores are an essential tool for lenders to manage credit risk, maintain portfolio health, and make informed lending decisions across the credit ecosystem. We are pleased to see Prosper credit products leveraging FICO Scores for proactive credit risk management.”