Steve Allocca is skeptical that the announcement this week of FICO 10, the new credit scoring model from Fair Isaac, will have any impact for lenders like LendingClub; the new scoring model will be launched later this year and it will cause changes in credit scores of up to 20 points for millions of consumers; the FICO score looks only at historical financial information for consumers and Allocca said that is no longer enough; modern lenders like LendingClub use the FICO score as just one input into a multi-faceted custom credit model; he said, “In an age where your whole financial life is verifiable digitally, instantly, with a customer’s permission and credentials why would you think that just historical loan performance would be a better indicator? PYMNTS
