U.S. Bank is using technology company Pagaya to leverage its AI-driven underwriting for personal loans to consumers.  

Pagaya’s AI-powered credit decisioning platform will conduct a secondary review for consumers who are usually locked out of the credit market, according to the bank’s Feb. 15 release.

Pagaya provides U.S. Bank with a holistic view about a loan application within milliseconds and can “come back to U.S. Bank with a ‘yes’ versus a ‘no’ decision,” a Pagaya spokesperson told Bank Automation News. 

Pagaya uses data points in addition to FICO score to decide on an application, the spokesperson said, noting that for a borrower whose debt-to-income ratio is higher than U.S. Bank’s threshold, Pagaya’s data might show 10 years of credit history to aid decision-making. 

The solution has been in beta testing for a few months and has approved more than 2,000 personal loan applications, the spokesperson said. 

Grasshopper taps Greenlite for compliance 

Digital bank Grasshopper is using AI-driven compliance provider Greenlite’s solution to improve risk profiling of small and medium-sized businesses, according to Grasshopper’s Feb. 13 release. 

“The AI capabilities conduct open-source research on the nature of the business, their activities, website, location, etc. [as well as] geographic risks related to where the entity transacts and publicly available information on source of funds,” Chris Mastrangelo, Grasshopper’s chief compliance officer, told BAN, noting that Greenlite also gives Grasshopper the ability to securely upload documentation and transaction information. 

“Greenlite’s AI capabilities allow our analysts to spend less time gathering information and more time making risk decisions,” Mastrangelo said. 

Payments company HitPay, wealth management company Bridge Trust, and personal expense management company fluz are some of Greenlite’s customers, according to the company’s website.  

Grasshopper Bank’s Director of Product Luther Liang will speak at Bank Automation Summit U.S. 2024 on Monday, March 18, at 3:15 p.m. CT, in Nashville, Tenn. 

Marqeta to aid ITS on travel expense solution 

Internet Travel Solutions (ITS) has tapped card issuer Marqeta to launch a travel and expense commercial credit card for mid-sized businesses. 

The credit card has real-time card issuing, a rewards program, live transaction data and spend controls to provide a customizable solution for businesses, according to Marqeta’s Feb. 13 release. 

Many businesses are offering branded cards to customers to increase consumer loyalty, Todd Pollak, chief revenue officer at Marqeta, told BAN. 

“It’s about retention and how can I provide them [customers] with advanced services that differentiate me from my competitors,” Pollak said. “For ITS, their use case is not necessarily about the card being a profit center, but it’s about how you eliminate a lot of the friction associated with reconciling and managing your travel expenses and provide an additional service.” 

Marqeta expects its credit card business to grow in 2024 as more firms tap into the offering to differentiate themselves, he said. 

Payments company Block, digital bank Monses and digital card solutions provider Swissquote are some of Marqeta’s customers, according to the company’s website. 

FIS and Banked team up for pay-by-bank 

Fidelity Information Services is joining forces with open banking solutions provider Banked for a pay-by-bank offering. 

The solution will allow consumers and businesses to make real-time transactions by providing third-party vendors with banking data, according to FIS’ Feb. 14 release. 

Businesses can reduce fraud, reduce friction in payment and lower transaction fees while consumers can get faster access to funds and a better experience, the release stated. 

“Corporations and consumers are clamoring for solutions that move their money easier and faster, and as open banking and fraud prevention mature, FIS is in a unique position to start offering pay-by-bank solutions for both businesses and consumers,” Seamus Smith, group president of global business to business payments at FIS, said in the release. 

Pay-by-bank offering will help in improving e-commerce sales and bill payments, Brad Goodall, founder and chief executive of Banked, previously told BAN. 

Major financial institutions like Bank of America, JPMorgan and Mastercard are also offering pay-by-bank services. 

Visit Bank Automation News’ Transactions Database, which lists the technology selected or acquired by companies in the financial services industry, with a specific focus on technology that enhances automation.

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