Modern credit reporting: Can old tech handle new data?

Serious mistakes on credit reports is the number one consumer complaint, but are these issues really a surprise? The systems were developed decades ago, and were never intended to take the scale and breadth of information the modern consumer can now provide. On this episode, host Vince Passione is joined by Christian Widhalm, CEO at Bloom Credit, to discuss the opportunities for improvement.Key takeaways:01.24: Almost a quarter of people find serious mistakes in their credit reports. The CFPB cites errors as the number one consumer complaint.02:18: The rails credit data is transmitted on were never designed to take the modern volume and breadth of data inputs.05:05: Even long-tenured, established lenders continue to make fundamental mistakes on credit reporting–partly due to the systems being decades old, and the data requirements being increasingly nuanced.07.38: Bloom Credit has developed a bi-directional API providing lenders with consistent information, regardless of what credit bureau they’re pulling from.11.12: Bloom Plus is a new product to enhance consumer management of their own credit data.14.00: CFPB announced a new rule on Buy Now Pay Later lenders, requiring updated standards, but BNPL credit reporting continues to lag.15.12: With each credit reporting bureau pursuing its own solution to BNPL reporting, BNPL lenders have been able to sit back and await their decisions without taking proactive steps.18.12: Why credit reporting would also be good for BNPL lenders.20.14: CFPB has been critical of credit reporting, and there may be a potential ‘New standard of care’ introduced.Resources Mentioned:https://bloomcredit.io/ Bloom Credithttps://bloomcredit.io/products/bloomplus/ Bloom PlusThanks for listening to the 22 Minutes in Lending podcast. If you enjoyed this episode, please leave a 5-star review to help get the word out about the show and be sure to subscribe so you never miss another insightful conversation.#CreditUnions #Lending #Credit

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