ATLANTA--(BUSINESS WIRE)--As part of its continued commitment to the needs of short-term lenders and the alternative financial services industry, FactorTrust announced today FlexFormat, the first industry standard in reporting short-term loan data for products focused on underbanked consumers. The underbanked typically are consumers with traditional credit scores under 700.
While Metro 2® is the industry standard for traditional credit bureaus, it provides an electronic data reporting format more suitable for prime loans, lacking a sufficient data reporting structure for information like loans with terms less than one month. FlexFormat fills this void. It provides a single format designed around the needs of short-term lenders, while also enabling Metro 2 standardized reporting. FlexFormat’s process allows customers to submit data to FactorTrust at no cost, which then maps and translates the data into Metro 2 format, allowing the data to be passed on to traditional credit bureaus.
“Because Metro 2 cannot support reporting of alternative loans for underbanked consumers, we developed FlexFormat to provide an industry standard and process that has gone unmet by the Big 3 bureaus,” said FactorTrust CEO Greg Rable. “This benefits not only the lenders who have asked for a one-to-many reporting format, but also the consumers who have been, until now, widely unrepresented by the Big 3 bureaus. FlexFormat easily configures and maps customers’ data in a way that is digestible by the Big 3 bureaus.”
FlexFormat also includes additional loan types that Metro 2 doesn’t support, providing better monitoring, quality assurance and data accuracy. This leads to higher and more complete data quality for these additional loan types, and addresses loan-stacking concerns.
FlexFormat fills a market need that has been missing until now, including:
- Convenient, single-format reporting where lenders only report credit history information once
Simple XML reporting process, driven by events within the lender’s
loan management system, such as:
- Number and value of new and open loans
- Last payment amounts and dates of made and missed payments
- Mapping and translation of data into Metro 2 format
- Real-time reporting that eliminates lag time between reporting cycles, enhancing accuracy
- Secure SSL encryption, ensuring highest industry standards in data security
- Flexible options in reporting only new loan inquiries, or all loan data
With FlexFormat’s high quality data reporting capability, lenders and providers more accurately assess risk and make faster decisions on consumers’ likelihood to repay loans. FlexFormat provides a complete overview of consumers’ creditworthiness, so consumers can get the credit they deserve and can afford. Since its inception, FactorTrust has processed more than 250 million records in real-time.
FactorTrust is uniquely qualified to bring FlexFormat to the market due to its experience working with both Metro 2 and short-term lending data. This proprietary format is founded on FactorTrust’s expertise in working with data reporting of short-term and non-prime loans.
FactorTrust, the alternative credit bureau, is relentlessly dedicated to proven analytics and clean credit information that provide lenders and financial service providers opportunities to grow more revenue, meet compliance regulations and serve more consumers with more credit options. At the core of FactorTrust is alternative credit data not available from the Big 3 bureaus (Experian, TransUnion and Equifax) and analytics and risk scoring information lenders need to make informed decisions about the consumers they want. FactorTrust alternative credit data and analytics accurately predicts risk and the ability to repay of near and non-prime consumer loans in real-time. The company’s solutions enable financial service companies an opportunity to uncover creditworthy prospects that are not surfacing via traditional credit sources. Headquartered in Atlanta, the experienced FactorTrust team of predictive analytics specialists, statisticians and financial industry experts has delivered unique data and valuable insight to lenders throughout the U.S. for more than 10 years. For more information on the quarterly FactorTrust Underbanked Index or the company itself, visit www.FactorTrust.com.