Credit unions, nonprofit member-owned financial institutions, serve more than 140 million people in the US. Quash is helping the often low-tech institutions upgrade their underwriting to better serve customers overlooked because of low credit scores.
The Miami-based company, which started out providing AI-enabled credit-risk assessment to financial institutions in Mexico and Brazil, is working on expanding alternative credit underwriting in the US. Quash’s system uses alternative data sources, like customers’ cell phone and subscription payment history, to personalize risk profiles and interest rates. Quash says this allows financial institutions to increase the number of borrowers on their books without increasing their overall risk exposure.
The company raised $2.6 million from Florida-based Acronym Venture Capital, with participation from H20 Capital and Insight Partners.
Generation gap
Credit unions need both a tech upgrade and younger customers. Today’s average credit union member is in their mid-50s; Baby Boomers generate more than half of credit union revenues. Most credit unions lag competitors in digital infrastructure and user experience.
Industry analysts see improved digital experiences and more personalized services as key to attracting younger members. “If you’re not understanding that millennial need, you’re losing that member,” Quash’s Yoel Gavlovski, a Venezuelan-born expat and Y-Combinator alum, told Refresh Miami.
