There were many lessons drawn from the economic response to the COVID pandemic in 2020. Among them was the role that digital technology can play in helping facilitate financial assistance to small businesses coping with lockdowns, quarantines, and a workforce wary of exposure to a deadly virus.
As many of our worst concerns about COVID-19 have begun to subside and economies have started to return to something approximating normalcy, the drive to make financing easier for individuals and small business remains an important part of a financial inclusion conversation that predates the pandemic. This is one of the reasons why we should expect to see more partnerships like the one announced today between Texas-based Cooperative Teachers Credit Union and AI-powered credit decisioning platform provider Scienaptic.
Courtesy of the new partnership, Cooperative Teachers Credit Union (CTCU) will be able to make faster, more accurate credit decisions for its members, as well as offer a range of additional financial options to them. Founded in 1953 “by teachers and for teachers,” CTCU currently serves more than 7,000 members and their families in East Texas and has more than $124 million in assets.
“Through the years, CTCU has grown in assets, in members, and in offerings,” the credit union’s president and CEO Tim Miller said. “We are excited to partner with Scienaptic and build upon this growth by tapping its AI-powered credit decisioning platform. Scienaptic’s AI will enable us to offer enhanced credit access to our members and improve their financial well-being.”
New York-based Scienaptic helps banks and credit unions move beyond outdated credit decisioning tools such as credit algorithms and traditional underwriting technologies that provide financial institutions with high credit loss rates and a subpar experience for potential borrowers. In contrast, Scienaptic drives traditional and alternative data through a powerful, preconfigured predictor library and explainable AI models to deliver more informed “yes/no” credit decisions, more accurate credit scoring and pricing, as well as more appropriate credit line levels for consumers. A boon for both credit underwriting and SME lending, Scienaptic’s platform is available as a hosted SaaS offering to keep capex costs low for its clients.
“By leveraging Scienaptic’s AI enhanced decision-making capabilities,” Scienaptic President Pankaj Jain said, “CTCU is positioned to create more approvals faster and strengthen member relationships, all while delivering an exceptional customer experience without increasing risk.”
The collaboration with CTCU is only the latest partnership Scienaptic has forged in recent weeks. In the month of August alone, the credit decisioning platform provider announced teaming up with automobile financing specialist Right Decision Financial Services, Oregon’s InRoads Credit Union, and the 140,000+ member Credit Union of Colorado.
Photo by Max Fischer from Pexels