Starta Accelerator from New York turned on green lights channeling USD 130K for startup Credit.ai developed for trading with turned down loan applications among financial institutions. One of the founders Viktor Ignatyuk is a developer of still another loans related projects of Taplend and uCredit.
Viktor Ignatyuk
Creditor.ai allows tackling the inefficiency of the credit market. Institutional lenders can sell its turned down credit applications to the willing parties. 10 out of 100 applications are disapproved, according to Creditor.ai.
Such situation arises due to the fact that specific and individual requirements are set out for decision making on providing loan facilities. It can be a risk assessment model, scoring and other approaches for analyzing the creditworthiness of borrowers.
However, 15% of the total number of the rejected applications, in fact, remain reliable being rejected for reasons not directly related to the borrowers creditworthiness. For example, one of such reasons may be geographical. So, any borrower from New York cannot take a loan from a California based small business lending company, despite plausible credit rating of a borrower. This is due to the regulatory issues in the USA.
In such a case, Creditor.ai allows transferring of the un-used credit application to a company from New York and, in this way, to reimburse expenses for attracting a client. On the other hand, a finance company from New York faces some trustworthy borrower. Every party gets into a win-win situation including the borrower.
Creditor.ai seek to earn 30% of the price upon a dismissed application for small loans (personal loans, credit cards) or 1% of the larger loans and long-term loans such as mortgages or business loans at the issuances.
The first market for entry became the US market. In Ukraine, Creditor.ai can become available in February next year.
