In a featured episode of Fintech Confidential, ValidiFI CEO John Gordon sat down with host Tedd Huff to dive deep into how alternative data is reshaping the way financial institutions assess risk and prevent fraud. The conversation sheds light on why traditional credit models are no longer enough—and how fintechs can leverage new data sources to gain a competitive edge.
The Power of Bank Data
In this discussion, John explains how ValidiFI helps lenders and processors move beyond static credit scores by analyzing real-time bank data—including ACH history, transaction patterns, and account behavior. These insights give institutions a clearer picture of financial health and consumer intent, which leads to smarter lending and fewer chargebacks.
“We’re helping companies make better decisions by using the data that already exists in their own ecosystem or in the broader financial world,” John says.
Key Takeaways from the Episode:
- Why alternative data is essential in today’s fragmented financial landscape.
- How ACH and bank behavior signals reveal more about a consumer’s creditworthiness than a score alone.
- The role of fraud prevention in modern risk management—and how predictive signals can help flag high-risk accounts before a transaction even happens.
- The importance of real-time data, especially for industries like Buy Now, Pay Later (BNPL), where traditional bureaus often fall short.
- The growing demand for financial inclusion and how ValidiFI supports responsible lending to underserved and non-prime consumers.
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