VantageScore announced the expansion of their groundbreaking VantageScore 4plus pilot program for lenders launched in partnership with Credit Builders Alliance. The pilot leverages the industry leading VantageScore 4.0 credit score with open banking data to deliver the new VantageScore4Plus credit score model. Initial data from the pilot show meaningful improvements in the ways nonprofit lenders can assess and serve potential borrowers. Key insights include: 1) Improved Predictive Lift: Applicants with new to credit, thin or inactive credit files, who make up 15% of participants in the pilot program, benefitted significantly from the addition of open banking data. 2) Clearer Risk Segmentation: Credit scores moved in both directions both up and down. There were nearly equal numbers of consumers seeing increases and decreases. The result signals better separation between higher- and lower-risk applicants. 3) Expanded Decisioning Opportunities: 44% of previously declined applicants could be reconsidered under a “second look” strategy using VantageScore 4plus, potentially unlocking credit while preserving underwriting rigor reducing risk.
Circle to launch stablecoin-powered cross-border payments network powered by smart contract infrastructure and modular APIs, enabling third-party developers to build apps and extensions
Circle announced Circle Payments Network (CPN) to connect financial institutions – banks, neo-banks, payment service providers, virtual asset service providers and digital wallets – and enable real-time settlement of cross-border payments using regulated stablecoins. Designed to bring efficiencies to a fragmented cross-border payments system, CPN provides financial institutions with a modern way to move money globally with the speed, transparency, and programmability of the internet. CPN is governed by a robust framework that requires participants to meet strict eligibility standards, including licensing, AML/CFT compliance, financial risk management, and cybersecurity protocols. By leveraging USDC, EURC, and other regulated stablecoins, CPN enables seamless connectivity to domestic real-time payment systems worldwide, while upholding the compliance, security, and trust required for financial institutions to meet their regulatory obligations. CPN will enable a broad spectrum of cross-border money movement use cases for businesses, financial institutions, and individuals — including supplier payments, remittances, payroll, capital markets settlement, internal treasury operations, and onchain financial applications. Powered by smart contract infrastructure and modular APIs, the network enables third-party developers to build advanced modules, app services, and automated financial workflows directly on top of CPN. In collaboration with global design partners, CPN will unify disparate payment networks and local currencies, enabling 24/7 real-time settlement using stablecoins.