The U.S. credit invisibility problem and fintechs

To meaningfully solve this challenge, fintechs need to enable financial institutions and other fintechs to change the constraints of the problem.

Credit is an essential tool for building financial health and resilience. The problem with using an individual’s credit rating as a metric for financial trustworthiness is that the on-ramps to establishing credit are deeply flawed.

It is estimated between 45 and 60 million U.S. consumers are unable to access mainstream credit products. This eye-opening statistic makes it that much easier to understand why fintech companies are interested in making the problem of credit invisibility a priority in their product roadmaps. The challenge is that, unlike overdraft fees, it’s surprisingly difficult to build a good wedge product around the problem of credit invisibility.

Credit-Builder Products and Fintechs

Credit-builder products are financial products designed to help consumers establish and develop positive repayment data that can be reported back to the three credit bureaus.


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