Entire Industries Still Unbankable Despite Big Data Boom

Entire Industries Still Unbankable Despite Big Data Boom

The use of data and technology for assessing risk shows promise for new borrowers, safer bets and fewer delinquencies...

The use of data and technology for assessing risk shows promise for new borrowers, safer bets and fewer delinquencies. Big data has been credited for overhauling traditional lending models and ushering in a new crop of lenders that do not shy away from risky businesses and low credit scores. But has it been successful in narrowing the list of industries previously ineligible to even be considered? And perhaps there’s a bigger story, that some lenders still maintain a list of industries they cannot or will not lend to despite the boom in data. deBanked checked the temperature on restricted lending practices today with three lenders and here’s what we found. Jersey City-based World Business Lenders whose average loan size is $150,000 does not lend to startups. According to chief revenue officer, Alex Gemici, startups usually don’t have revenues to justify payments. “Startups fail the ‘ability to pay’ test,” he said. The restricted industries for WBL are the usual-suspects that fall in the federal legality grey areas like Marijuana related businesses and adult entertainment websites and weapon manufacturers that the company takes a moral stance against. Gemici said that the company has never lent to these industries and will evaluate the policy only if the need arises... Read more (2 min reading time!)

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Entire industries still unbankable despite #BigData boom https://t.co/XW1fReFg7i #funding #altfi #altfin https://t.co/c740wuiSqR
The Route – Finance
The Route – Finance