Elevate Credit, Inc., a tech-enabled provider of online credit solutions for non-prime consumers, announced on Tuesday its customers have saved more than $2 billion, versus what they would have paid for payday loans. The company reports that $613 million of these cumulative savings were incurred in the first half of 2017 alone. Ken Rees, CEO of Elevate, stated:
“This milestone illustrates our continued efforts to increase financial inclusion for non-prime consumers. In addition to providing superior alternative credit options, we’re also committed to helping customers improve their financial wellness and graduate to other financial options based on their successful repayment history.”
Elevate revealed it uses advanced analytics powered by machine learning-powered algorithms to supplement traditional credit scores and unearth nuances in an individual’s credit history and their perceived financial stability. Credit determinations are made in seconds and approximately 95% of customer applications are fully automated with no manual review required. Elevate Chief Analytics Officer, Eric Von Dohlen, also commented
“Because we can leverage advanced technology to better understand the human behind the screen, we can provide access to credit to customers who need to make ends meet and improve their financial lives. Our analytics capabilities help us simultaneously manage our risk and price our online credit products more appropriately, allowing us to speed up our approval process and help customers who are looking for better financial options.”
Elevate is a provider of responsible online credit products for non-prime consumers who are not well-served by traditional banks. Elevate’s products are priced significantly lower than other options non-prime customers typically use, like payday loans, which have an average APR of approximately 400%; or bank overdraft products, which have an average effective rate of more than 3,500%, according to the FDIC. The company added its solutions offer additional responsible lending features including credit bureau reporting, free credit monitoring (for U.S. customers), online financial literacy videos and tools, flexible repayment schedules, and no prepayment penalties or punitive fees.