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US banks to begin issuing credit cards to “responsible” adult with no credit

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Revelate
Moderator Emeritus

Re: US banks to begin issuing credit cards to “responsible” adult with no credit


@Anonymous wrote:

@Revelate wrote:

FI's have their historical customer data, and any time they are looking at a new algorithm especially an internal one (which these will be) they will just run the algorithm through their historical data back some number of years and compare the predicted results of the new algorithm with the actual performance of the accounts over the same time period.

Yes, each one has their own data silo, but have they ever pooled it with other banks and analyzed that entire combined set, like EQ/TU/EX did with Vanatage Score?

 

The implications of that sort of data sharing and analysis have to keep some people at FICO up at night.


Oh no I completely agree with you on that, just my point was as soon as they have the algorithm, a few days later at worst they will have their predicted performance, and they may go back and tweak this many times but once they are happy with the result they will trial it immediately.

 

How long it takes for them to come up with that algorithm not sure but in this one they are going to have to make some guesses and try it as the people Biden wants to reach include the unbanked not just the underbanked... so I sort of think this will be a faster rollout than others. 




        
Message 11 of 39
Anonymous
Not applicable

Re: US banks to begin issuing credit cards to “responsible” adult with no credit

Ugh, more data sharing! This is why I don't do serious deposit relationships with big banks. My local bank even opted out of data sharing with EWS while still offering Zelle. While my BBVA, US Bank, and even NFCU accounts show up on my Early Warning report complete with balances and transactions, 1stBank shares none of it. I don't have anything to hide but I'll take privacy in this world wherever I can get it. Same reason I don't use Google Assistant, Siri, or Alexa.

 

I doubt this is something they're going to let you opt out of. I mean they don't let you opt out of EWS either and it's a lot of the same info they'll be sharing here. 

Message 12 of 39
sarge12
Senior Contributor

Re: US banks to begin issuing credit cards to “responsible” adult with no credit


@Anonymous wrote:

Ugh, more data sharing! This is why I don't do serious deposit relationships with big banks. My local bank even opted out of data sharing with EWS while still offering Zelle. While my BBVA, US Bank, and even NFCU accounts show up on my Early Warning report complete with balances and transactions, 1stBank shares none of it. I don't have anything to hide but I'll take privacy in this world wherever I can get it. Same reason I don't use Google Assistant, Siri, or Alexa.

 

I doubt this is something they're going to let you opt out of. I mean they don't let you opt out of EWS either and it's a lot of the same info they'll be sharing here. 


I know, and how anyone has alexa is beyond me. I got one for Christmas but seldom turn it on. I feel like it might be spying on us all and recording our conversations. Call me paranoid, but black electrical tape is over the camera lenses on my laptop, and the mic stays off until I choose to use it. Knowledge is power, and big Brother already has too much of both. Many anti-tech theories are a bit extreme, but we are surrendering too much privacy the big tech giants.

TU fico08=812 07/16/23
EX fico08=809 07/16/23
EQ fico09=812 07/16/23
EX fico09=821 07/16/23
EQ fico bankcard08=832 07/16/23
TU Fico Bankcard 08=840 07/16/23
EQ NG1 fico=802 04/17/21
EQ Resilience index score=58 03/09/21
Unknown score from EX=784 used by Cap1 07/10/20
Message 13 of 39
Anonymous
Not applicable

Re: US banks to begin issuing credit cards to “responsible” adult with no credit


@sarge12 wrote:

@Anonymous wrote:

Ugh, more data sharing! This is why I don't do serious deposit relationships with big banks. My local bank even opted out of data sharing with EWS while still offering Zelle. While my BBVA, US Bank, and even NFCU accounts show up on my Early Warning report complete with balances and transactions, 1stBank shares none of it. I don't have anything to hide but I'll take privacy in this world wherever I can get it. Same reason I don't use Google Assistant, Siri, or Alexa.

 

I doubt this is something they're going to let you opt out of. I mean they don't let you opt out of EWS either and it's a lot of the same info they'll be sharing here. 


I know, and how anyone has alexa is beyond me. I got one for Christmas but seldom turn it on. I feel like it might be spying on us all and recording our conversations.


Oh let me count the ways...but here's just one tiny example from a few years ago:

"Sheriff's detectives returned to French's 2016 black Chevy Silverado pickup truck, which had been stolen around the time he vanished, and discovered time-stamped recordings of someone else's voice using the hands-free system to play Eminem on the radio at the time of French's murder."

 

They made an arrest in that case based on the voice recordings. With our new mmWave/5G connected world, cars are going to be sharing a whole lot of data in near real time. If I listed everything (I work in this industry and have programmed EDRs), most people would never believe it or just give up trying to comprehend the scope of it all.

 

But to stay on topic, I guess there really isn't any downside to these banks sharing everything together without an opt-in. If they lose the whole dataset there's no real repercussions for it that can hurt them. They'll make money selling the aggregate data either way, like how Mastercard gets 25% of revenue from selling info on what we buy. Just look at what happened with Equifax.

Message 14 of 39
KatSoDak
Frequent Contributor

Re: US banks to begin issuing credit cards to “responsible” adult with no credit

The linked article reports so far 10 banks have agreed to sharing data!  They jumped right on that didn't they?

 

Another point I noticed when I read this piece this morning was  what I think was referring to the poor reception of FICO 10:

 

"FICO announced in 2018 a scoring system that factors in how consumers manage their bank accounts. Few lenders—and no banks—signed up for it, according to people familiar with the matter."

FICO 8:

EQ FICO 9 - 770
EX FICO 9 - 758

Citi (2) | Discover | HSBC | BOA | NFCU (2) | WF (2) | Simmons Bank | FNBO (2) | PENFED | BBVA | US Bank | Lowes | Care Credit | Home Depot AU
Message 15 of 39
805orbust
Valued Contributor

Re: US banks to begin issuing credit cards to “responsible” adult with no credit

@sarge12  I aint gonna lie, I got sucked in to Alexa back in 2016.... for about 9 weeks. It's been unplugged ever since what was really going on hit me... must be crazy.  I'm in my 50's tho so...  Smiley Very Happy



Message 16 of 39
Anonymous
Not applicable

Re: US banks to begin issuing credit cards to “responsible” adult with no credit


@KatSoDak wrote:

The linked article reports so far 10 banks have agreed to sharing data!  They jumped right on that didn't they?

 

Another point I noticed when I read this piece this morning was  what I think was referring to the poor reception of FICO 10:

 

"FICO announced in 2018 a scoring system that factors in how consumers manage their bank accounts. Few lenders—and no banks—signed up for it, according to people familiar with the matter."


@KatSoDak: That's the UltraFICO score that uses bank account data. FICO 10 doesn't use that.

 

But poor FICO...."Few lenders—and no banks—signed up for it" Smiley Sad I feel bad for the analytics team that developed it now. (Some of whom probably answered our questions during an AMA session here on the forum ).

Message 17 of 39
KatSoDak
Frequent Contributor

Re: US banks to begin issuing credit cards to “responsible” adult with no credit

@Anonymous  I've never heard of Ultra FICO before reading the linked page.

 

Sounds like the same plan the banks themselves are pushing now, doesn't it?

FICO 8:

EQ FICO 9 - 770
EX FICO 9 - 758

Citi (2) | Discover | HSBC | BOA | NFCU (2) | WF (2) | Simmons Bank | FNBO (2) | PENFED | BBVA | US Bank | Lowes | Care Credit | Home Depot AU
Message 18 of 39
sarge12
Senior Contributor

Re: US banks to begin issuing credit cards to “responsible” adult with no credit


@805orbust wrote:

@sarge12  I aint gonna lie, I got sucked in to Alexa back in 2016.... for about 9 weeks. It's been unplugged ever since what was really going on hit me... must be crazy.  I'm in my 50's tho so...  Smiley Very Happy


I am not sure it is necessarily nefarious, but I would not be surprised at all if somone speaks about possibly buying a car in the privacy of their home in front of an alexa device, and suddenly start getting e-mails and snail mail with car ads. Think about it, the device takes commands when you say alexa, it is by design listening to your speach. They do not even have to plant a bug in an alexa equipped home, we are bugging our own homes, and paying for the bugs. Even baby monitors have been hacked. I may just be paranoid though, but I do not trust alexa devices to not be misused by those who can misuse them. Supposedly hackers stopped gas delivery from Russia, it is likely much easier for a hacker to eavesdrop by hacking an alexa device.

TU fico08=812 07/16/23
EX fico08=809 07/16/23
EQ fico09=812 07/16/23
EX fico09=821 07/16/23
EQ fico bankcard08=832 07/16/23
TU Fico Bankcard 08=840 07/16/23
EQ NG1 fico=802 04/17/21
EQ Resilience index score=58 03/09/21
Unknown score from EX=784 used by Cap1 07/10/20
Message 19 of 39
Anonymous
Not applicable

Re: US banks to begin issuing credit cards to “responsible” adult with no credit


@KatSoDak wrote:

@Anonymous  I've never heard of Ultra FICO before reading the linked page.

 

Sounds like the same plan the banks themselves are pushing now, doesn't it?


Yes, it really is. Might have been a catalyst for the banks even. "Why should we let them in. We can do it ourselves!"

 

FICO had to make theirs opt-in:

"By simply and securely linking with your checking, savings or money market accounts, your UltraFICO™ Score can enhance your FICO® Score based on indicators of sound financial behavior. By opting in, you could broaden your access to more lending options and better terms."

Message 20 of 39
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