If there’s such a thing as life after death, I think I want to come back as an alternative lender.
Or anything in that ecosystem for that matter. Venture capitalists are eager to spend big money on the fortunes of a growing number of alternative lenders. Big banks are looking to make deals and partnerships. And now investors are beginning to pay more attention to some of the other players in the fintech alt lending jungle.
RevolutionCredit, which specializes in credit decisioning, is a richer company today courtesy of an undisclosed investment from Accion Venture Lab. The Lab is a $10 million effort from Accion International designed to support those startups that are promoting financial inclusion through their technology. Both seed funding and mentoring are included as part of the initiative.
RevolutionCredit works by combining gamification, education, and forward-looking behavioral data to provide insights into which potential borrowers are more likely to successfully pay back their loans. Specifically, RevolutionCredit says that it can distinguish higher quality borrowers from lower quality borrowers even when traditional metrics like credit scores are the same or similar.
CEO Zaydoon Munir claims that RevolutionCredit can reduce delinquency by 30% and increase retention by more than 67%. The platform, which is currently available by invitation only, has been tested in pilot environments with lenders, credit card companies, and billers.
RevolutionCredit demoed as part of the FinovateFall 2013 conference in New York last year. Zaydoon Munir is founder and CEO. Watch the company’s presentation here.