New income verification tool to help lenders assess gig workers and self employed
A new income verification tool has been launched, which helps lenders assess borrowers with non-traditional income patterns.
AI-powered analytics firm Fuse is behind the new solution, which uses transaction data to create a more accurate profile of a borrower.
Fuse says that the new tool will enable lenders to support a growing segment of the workforce that is often excluded from credit products, such as people who are self employed, contractors and gig workers.
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This group can sometimes struggle to access finance as they do not have a single, regular source of income like a salaried employee would have.
Fuse’s solution uses data from the Pave app, a subscription-based, credit health builder app which caters to underserved groups in the credit market.
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“Technology is transforming the financial sector for the better, facilitating the development of models that are more inclusive, safer, and built around the best interest of consumers,” said Sho Sugihara, chief executive and co-founder of Fuse by Pave.
“We are committed to driving positive change and the launch of the income verification tool is the next step in this journey, promising to make credit more accessible and affordable for those with non-traditional income patterns.”
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