US fintech startup Harvest is aiming to overturn the traditional credit scoring system, utilising AI and machine learning to provide a dynamic view of a person's financial wellness throughout the lifetime of a loan.
Harvest's PRO Index (PariFi Rating & Opportunity Index), takes into account several factors in addition to credit score to give consumers and financial institutions a better gauge of an individual’s financial wealth.
The index employs machine learning and artificial intelligence to map out a holistic financial plan for each individual based on their credit score, income and spending patterns. The AI automatically negotiates bank fees and interest charges and manages and flags recurring payments.
The platform gives one central picture of all of an individual’s finances; outlining their assets, debts, and expenses in one place with action items to best improve financial wellness. Users who sign up for the index have access to tools that help automatically get refunds from bank fees and interest charges, manage debts, and analyse expenses.
From a lender perspective, Harvest provides Ability-to-Pay as a Service (A2PaaS), providing access to transactional data in real-time and providing an overview of a customer's current financial status. This enables lenders to identify pre-arrears customers immediately and improve recovery.
Nami Baral, CEO of Harvest, says: “Consumers are facing an unparalleled time of insecurity around their finances and the future. We’re launching the PRO Index now to help them truly understand their baseline. Our hope is that this index and our platform will empower the majority to take control of and secure their hard-earned money.”