Bloom+ Wins Best in Show at Finovate for Revolutionizing Credit Access

We’re thrilled to announce that Bloom+ won the prestigious Best in Show award at FinovateSpring for its innovative approach to expanding access to affordable credit. In a financial landscape where the average bank customer or credit union member is in their mid-50s, Bloom+ addresses a critical need: helping banks and financial institutions (FIs) serve and retain the next generation of customers, while simultaneously attracting and retaining deposits as well as drive loan growth.

The Challenge

The financial industry is facing significant consolidation, and institutions that fail to attract and retain younger customers risk falling behind. Meanwhile, 100 million consumers in the U.S. lack access to mainstream credit products and rates. This group includes individuals with no or thin credit files (limited credit history) and those with subprime credit. Traditional banks and FIs have struggled to engage this segment comfortably and effectively.

The Solution: Bloom+

Bloom+ offers a groundbreaking solution that helps FIs attract new customers while expanding access to affordable credit. The platform allows consumers to build credit through their recurring monthly payments in debit accounts, transforming everyday transactions into valuable credit history.

Key Features of Bloom+

Bloom+ identifies eligible accounts for credit building, verifies payments, and sends this information to credit bureaus to impact the consumer’s credit file positively. This process is repeated monthly, continually identifying new payments to convert into tradelines.

• Regular Mobile Banking Experience: The Bloom+ solution integrates seamlessly with a bank’s mobile banking app, providing a familiar and user-friendly interface.
• No-Code White Label Solution: Financial institutions can implement Bloom+ without any coding or IT resources, ensuring a smooth and quick integration.
• Immediate Credit Improvement: Consumers can see an immediate explanation of how the product works upon landing on the Bloom+ screen and eligible payments are sent as new tradelines to major credit bureaus on a monthly basis.
• Turn Transactions into Tradelines: Bloom+ converts monthly transactions, such as rent, utility, and telecom payments, into tradelines reported to major credit bureaus, all under the FI’s name and brand.
• Privacy and Consent: The white-label solution ensures that users only see the bank’s branding, and Bloom+ verifies consent without collecting or storing certain sensitive information like Social Security numbers.

Bridging the Credit Gap

By using Bloom+, FIs can engage customers who were previously hard to reach, such as young adults (18-24 years old), immigrants with limited U.S. credit history, and victims of identity theft – just a few examples in the wide swath of traditionally excluded consumers. The platform provides a path for FIs to offer entry-level credit products to these new and existing customers, establishing lifelong relationships and turning thin/no credit or subprime individuals into loyal, long-term clients.

Bloom+ also allows FIs to retain control over their brand and customer relationships, keeping all interactions within their own ecosystem. This helps maintain sovereignty over customer data and ensures that the FI remains the primary financial partner for these individuals.

Impact on the Broader Credit Ecosystem

Bloom+ empowers customers to demonstrate creditworthiness in new ways, enriching the broader credit data ecosystem. By incorporating alternative credit data from everyday transactions, lenders can make more informed decisions when assessing creditworthiness, ultimately expanding access to affordable credit for millions of underserved consumers.

Bloom+ works to enhance individual financial health by addressing the needs of over 100 million underserved consumers and strengthening the overall stability and inclusivity of the credit market. This innovative approach and its impact on financial inclusion are what earned Bloom+ the Best in Show award at Finovate, marking a significant step forward in the quest for equitable access to credit.

Watch the Bloom+ demo at FinovateSpring below:

https://finovate.com/videos/finovatespring-2024-bloom-credit/

About Bloom Credit

Bloom Credit is the credit data solution that helps financial institutions go to market fast with industry-leading credit products.

Bloom+ helps consumers establish credit history through qualified recurring monthly bank transactions rather than traditional credit payments, which many consumers may lack.

Bloom+ is distributed through financial institutions, fintech companies, and other platforms, ensuring broad access and implementation across the financial industry.