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VantageScore’s use of open banking transaction data to support building real-time, FCRA-compliant credit score sees 33% of subprime and 41% of near prime members move to higher credit tiers

June 24, 2025 //  by Finnovate

VantageScore successfully completed two independent pilot programs using VantageScore 4plus™, the newest VantageScore credit scoring model leveraging the power of industry-leading VantageScore 4plus™ alternative open banking data. Pilots conducted with Patelco Credit Union and Michigan State University Federal Credit Union (MSUFCU) each demonstrated significant quantitative improvements in credit risk prediction, as well as a significant expansion in access to credit for underserved consumers.  “These results show that open banking data, when used responsibly and in combination with credit file data, can dramatically improve both risk management and financial inclusion,” said Dr. Andrada Pacheco, Executive Vice President and Chief Data Scientist at VantageScore. The solution builds on the industry-leading performance of the VantageScore models by adding bank transaction data to deliver a real-time, FCRA-compliant credit score. It offers enhanced risk separation among populations with limited credit histories, according to analyses performed by VantageScore. Because it is compatible with all three major credit bureaus and aggregator APIs, lenders can easily adopt it without overhauling credit policies. Michigan State University Federal Credit Union saw strong results in VantageScore 4plus™ testing, including: 33% of subprime moved to higher credit tiers; 41% of near prime members moved to higher credit tiers. In testing its portfolio, Patelco Credit Union found that VantageScore 4plus™ delivered: 12% of subprime and 15% of near prime members moved to higher credit tiers; 4.8% improvement in predictive power over VantageScore 3.0 in originations

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