Toronto’s QuadFi has secured a new financing facility of up to CAD $127 million with New York’s Crayhill Capital Management to provide personal loans to people with limited credit history.
Unlike traditional risk rating models which rely only on the historical behavior and income of customers, QuadFi’s novel and adaptive underwriting model is forward-looking and considers a customer’s future income and career trajectory.
QuadFi’s innovative model is especially useful for customers with thin credit history but bright prospects, mainly newcomers, and younger demographic groups.
Further, the company offers immigrants the benefit of utilizing their home country financial history even after having left.
“Canada welcomes 400,000 new immigrants every year – and they deserve access to fair and affordable financial products. Our model incorporates credit data from their home countries, alternative data and open banking to provide accurate underwriting and deliver financial inclusion today,” noted Dr. Manny Nikjoo, Co-Founder and CEO of QuadFi.
“This partnership allows us to take a big step toward achieving our long-term pursuit of fostering financial inclusion and helping our customers, who are young, ambitious and educated, achieve the financial access they deserve.”
Leave a Reply