The eighth episode of VentureKast, Accion Venture Lab’s podcast series, is a conversation between host Vikas Raj and Zaydoon Munir, Founder and CEO of RevolutionCredit, recorded at Venture Lab’s Washington, D.C. office.
RevolutionCredit helps consumers who might otherwise be denied access to loan products prove their creditworthiness to lending institutions. The company integrates tutorial videos and simple financial quizzes directly into online loan applications, generating real-time behavioral scores for creditors at the point of transaction. These scores improve lenders’ ability to risk-segment consumers and nudge them toward measurable improvements in their financial behaviors, leading to more approvals, improved engagement, and less delinquency. For customers, this can mean access to products they wouldn’t have otherwise, as well as the opportunity to improve their financial management knowledge through educational videos, quizzes, and games. Zaydoon, a veteran of the international consumer and wholesale financial services industry, founded RevolutionCredit in 2012. Earlier in his career, he spent over six years at Experian in a variety of senior executive roles.
In this episode, Zaydoon elaborates on his comments in a recent Fast Company article featuring RevolutionCredit, in which he explained that most credit scoring models that exist today, in the U.S. and globally, are transaction-data-based — meaning they are mostly backward-looking and result in a “negative selection” process. The RevolutionCredit model, on the other hand, allows financial institutions to look beyond past performance to gauge someone’s likelihood to pay a loan in the future. Zaydoon believes that, despite conventional wisdom, when it comes to someone’s creditworthiness, the future does not always reflect the past. Zaydoon also shares his thoughts on the “hype” around big and alternative data, and what’s next in store for RevolutionCredit.