FinovateSpring 2024 / Bloom Credit
Bloom Credit demoed at FinovateSpring in 2024.
Transcript
Thank you. After this demo, you might not think English is my native language—but it is. Good morning, I’m Christian Whelm, CEO of Bloom Credit. We’re the leading platform in modernizing credit data infrastructure. Today, financial institutions such as banks and credit unions face a real problem attracting and retaining the next generation of customers. Consolidation among these institutions is increasing, and the average age of a bank customer or credit union member is in their mid-50s. As these institutions face existential challenges, there’s a major opportunity in serving the more than 100 million U.S. consumers who don’t have access to mainstream credit products or competitive rates. About half of these individuals are “thin file” or “no file” with the major credit bureaus, meaning they have little or no credit history. The other half have subprime credit. Banks and credit unions have typically struggled to comfortably engage, serve, and unlock this large segment of the market.
With Bloom Plus, we help them do exactly that—attract new customers while simultaneously expanding access to affordable credit. We do this by enabling consumers to build credit through their monthly recurring payments made from their checking accounts. Bloom Plus helps financial institutions attract, activate, and retain customers, while also growing multiple revenue streams. Officially launching in June, Bloom Plus offers a white-labeled, no-code solution requiring no technical resources to implement. Institutions simply drop in a link, and customers are taken to an experience branded by the financial institution. From there, customers learn how they can build credit through recurring payments, which are converted into trade lines reported to the major credit bureaus. We gather transaction data through aggregators like MX, Finicity, or Plaid, but the experience is fully branded for the institution. We verify identity through device authorization without storing Social Security numbers, and the product is particularly well suited to ITIN holders and other underserved groups.
Bloom categorizes monthly transactions, such as rent, telecom, and utility payments, as eligible for credit building. With consent, we verify, bundle, and report these payments as trade lines to the major credit bureaus, ensuring they impact the consumer’s credit file and score. Enrollment continues month to month, with new eligible payments added as they become available. This process allows financial institutions to engage enrolled customers by offering entry-level credit products, bridging the gap to long-term relationships. These previously hard-to-serve individuals become “sticky” customers, helping institutions retain deposits and deepen engagement.
So how do you turn someone who is thin file, no file, or subprime into a lifelong customer? By giving them a way to build credit and access opportunity. Consolidation among financial institutions is real—I’ve been in this space for 15 years, and during that time the number of banks and credit unions dropped from around 15,000 to 10,000. Institutions that fail to pursue the next generation of customers will struggle, while those that do will thrive. The audience for this solution includes 18- to 24-year-olds at the start of their borrowing journey, immigrants with limited credit history, victims of identity theft who need to rebuild, and many others.
We built Bloom Plus to help institutions attract and retain new customers while expanding access to affordable credit. More than 100 million Americans currently lack access to it, but Bloom Plus offers a path forward—within the institution’s own brand and ecosystem. It’s time to give customers new ways to demonstrate creditworthiness and to enrich the broader credit data ecosystem so lenders can make the most informed decisions. Bloom Plus delivers on both goals. We’re launching next month with initial partners including credit unions, banks, and fintechs. If you’d like to learn more, visit us in the exhibit area and look for the folks in white Bloom hats. I’m confident that together we can solve the challenge of expanding access to affordable credit for so many people. Thank you.
About Bloom Credit
How they describe themselves: Bloom Credit is a B2B credit data infrastructure platform that is building the next generation of rails for all things credit data, which includes the transmission and compliant storage of all things credit data. Bloom’s service is helping enable the expanding of affordable credit through real-time and accurate data, both traditional and alternative.
How they describe their product/innovation: There are 100+ million consumers in the U.S. that don’t have access to mainstream credit rates or products due to being either subprime or thin/no file with the major credit bureaus. Bloom+ helps consumers build and establish credit history through their qualified recurring monthly bank transactions, rather than just through traditional credit payments, which many of these consumers may not currently have. Bloom+ is delivered to consumers through FI partners and the entire experience stays with the FI and helps them better serve and retain their customer.
Product distribution strategy: Through financial institutions, Through other fintech companies and platforms, Licensed
Credit Union/Community Bank Fit: Credit Unions, Community Banks
