Boost Credit Uses Zest AI to Increase Access and Inclusiveness to Student Loans | New
LOS ANGELES, April 27, 2021 / PRNewswire / – Zest IA, a leader in credit underwriting software, today announced that it has entered into a partnership with Climb credit, a lender committed to a more efficient and inclusive way of financing education. Climb uses Zest’s model management system to fuel its student credit model and further improve accuracy and fairness. The ability of the model built by Zest to improve accuracy can generate higher approval rates (by nearly 20% based on Zest’s past consumer loan experiences), while further minimizing the impact of the data. from the credit bureau known to correlate with race, gender and ethnicity.
We are proud to support innovators like Climb who provide opportunity for Americans of all walks of life.
Climb’s mission is to create loan and payment solutions that improve access for all Americans to vocational and skills-based training focused on better career opportunities. It helps people fund skills training with proven returns, such as some trade schools and software development bootcamps. Building on its previous underwriting model which performed well above industry benchmarks in terms of fairness, Climb will use Zest’s software to process credit bureau data to re-weight certain factors in order to improve precision and fairness. The model reduces the disparate impact compared to traditional credit scoring methods by reducing the weight of certain credit bureau data points known to correlate with the characteristics of the protected classes.
“We are committed to answering the calls of many for greater transparency, fairness and inclusion in the student lending space.” Said Angela Ceresnie, CEO of Climb. “By using Zest’s software that improves loan equity and accuracy, we can provide more people with opportunities in training programs and schools that have demonstrated the ability to advance their careers and potential. income. This is another important step in our commitment to fairness and fair loan testing. and compliance. “
“The profitability and equity of loans are not mutually exclusive,” said Mike de Vere, CEO of Zest AI. “The real benefit of machine learning is to securely expand the credit box for more Americans. Lenders can grow faster and consumers have a real head start in society. We are proud of. supporting innovators like Climb who provide opportunities for Americans from all walks of life. “
Climb students report an average graduation rate of 94% and a median salary increase of over 70%.
Lenders using Zest models have seen, on average, a 15% increase in approval rates without additional risk or a 30% reduction in write-off rates with constant approvals.
About Zest AI
Zest AI makes the power of machine learning safe to use in underwriting credit. Lenders who use Zest AI software make better decisions and better loans – increasing their income, reducing risk, and automating compliance. Zest AI was founded in 2009 with the mission of making fair and transparent credit accessible to all. Learn more about Zest.ai and connect with us on Twitter @Zest_AI or our Knowledge Blog.
About Climb Credit
Climb (NMLS # 1240013) is an innovative student payment platform that makes career creation and transformation more accessible, affordable and responsible than ever. Driven by a mission to empower individuals to unlock their career potential – regardless of their credit profile – Climb identifies programs and schools with a demonstrated ability to improve the incomes of their graduates. Then, they provide learners with funding options that are priced and structured to meet the unique needs of those seeking career development and increased earning power. Recognizing the vibrant and diverse nature of a rapidly changing economy, Climb partners with schools that teach everything from cybersecurity and healthcare education, heavy machine operations to data science, and the culinary arts to coding. While some colleges struggle to meet the real needs of their students, Climb and its partner schools are committed to taking an inspiring, hands-on approach that brings real career results as individuals take ownership of their next chapter. For more information visit https // Climbcredit.com or follow @ClimbCredit on Facebook, Twitter and Instagram
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SOURCE Zest AI