DigiFi teams up with Carrington Labs to incorporate cash flow underwriting into their loan origination system.
In a significant move, Carrington Labs and DigiFi have joined forces to enhance digital loan origination. The partnership integrates Carrington Labs' AI-driven cash flow underwriting and credit risk solutions into DigiFi's platform, providing lenders with a more intelligent, data-driven approach to loan origination.
The integration accelerates setup times for lenders, enabling them to quickly and easily access Carrington Labs' capabilities within their existing DigiFi workflows. This collaboration allows lenders to streamline and speed up the integration of tailored credit risk analytics, improving decision-making speed and accuracy.
Jamie Twiss, CEO of Carrington Labs, states that the company exists to provide a solution for lenders seeking to integrate alternative data and smarter analytics into their lending decisions. Carrington Labs' explainable AI models enable lenders to identify both risk and opportunity with greater confidence.
The Carrington Labs platform enhances traditional credit assessments by combining transaction data, credit bureau records, and lender-specific inputs. This approach provides a more comprehensive view of a borrower's financial situation, allowing for more accurate risk assessments.
DigiFi, on the other hand, provides an AI-powered, no-code, extensible loan origination system (LOS) platform that supports rapid deployment and customization for digital lending workflows. The integration of Carrington Labs' solutions into DigiFi's LOS enables banks and lenders to leverage advanced behavioral analytics that track spending and income shifts for improved risk assessment.
Lenders will now have direct access to Carrington Labs' product suite, including the Cashflow Score, loan term recommendations, and early-warning credit risk indicators, all within their existing DigiFi workflows. This partnership allows lenders to better tailor their credit risk analytics in real-time, thereby enhancing underwriting efficiency and potentially expanding access to credit by using more nuanced, cash flow-based risk indicators rather than traditional credit scores alone.
Jorge Calderon, Executive Chairman at DigiFi, adds that the integration of Carrington Labs' cash flow underwriting capabilities into the DigiFi origination platform provides lenders with instant access to deeper insights and helps them act on richer data without any friction. The integration also allows lenders to test and deploy cash flow-based credit strategies using Carrington Labs within existing DigiFi workflows.
This collaboration combines advanced AI behavioral credit models with a flexible digital lending platform, empowering banks and lenders to deploy more intelligent, data-driven loan origination workflows that improve risk management and operational agility. The partnership is expected to help lenders improve portfolio performance, increase approval rates, and broaden access to credit by accurately assessing thin-file and non-traditional applicants.
[1] Carrington Labs press release, "Carrington Labs Announces Strategic Partnership with DigiFi to Enhance AI-Powered Digital Loan Origination," 12 March 2023. [2] DigiFi website, "DigiFi Platform Overview," accessed 13 March 2023. [3] Carrington Labs website, "Product Suite," accessed 13 March 2023. [4] Carrington Labs website, "Cashflow Score," accessed 13 March 2023. [5] Carrington Labs website, "Loan Term Recommendations," accessed 13 March 2023.
Visitors to ffnews.com can now read about the strategic partnership between Carrington Labs and DigiFi, two companies specializing in finance and technology. This collaboration aims to bolster digital loan origination by integrating Carrington Labs' AI-driven cash flow underwriting and credit risk solutions into DigiFi's platform. This integration is expected to improve the speed and accuracy of decision-making in loan origination for banks and lenders.
