Revolution Credit aims to bring gamification and predictive behavioral analytics into the credit decisioning process. If a bank looked at 1000 different customers with similar credit scores, Revolution Credit would be able to predict which ones will be more likely to repay, Zaydoon Munir, the company’s founder and CEO, said during yesterday’s presentation.
Traditional credit scoring can’t really predict future customer behavior. It just gives insight into a customer’s past, Munir pointed out. And credit scoring methods are useless when it comes to the millions of potential customers who don’t have any credit history. Often these customers get caught in a cycle of rejection because they don’t have the history to prove credit-worthiness, Munir added.
Revolution Credit solves this issue by “engaging the customer in [gamified] activities and extracting behavioral signals that indicate willingness to pay back,” Munir explained. This helps mitigate loan losses, while improving customer experience and acquisition, he said. Working with one lender, Revolution Credit helped reduce customer delinquency rates by 30%.
Jonathan Camhi has been an associate editor with Bank Systems & Technology since 2012. He previously worked as a freelance journalist in New York City covering politics, health and immigration, and has a master's degree from the City University of New York's Graduate School ... View Full Bio