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WFC - Wells Fargo & Co News Story

$41.75 -1.0  -2.4%

Last Trade - 18/06/21

Sector
Financials
Size
Large Cap
Market Cap £124.97bn
Enterprise Value £296.02bn
Revenue £52.64bn
Position in Universe 63rd / 6927

JPMorgan, others discuss issuing credit cards to people with no credit scores - WSJ

Thu 13th May, 2021 11:16am
May 13 (Reuters) - JPMorgan Chase & Co  JPM.N , Wells Fargo
 WFC.N , U.S. Bancorp  USB.N  and other banks plan to share data
on customers' deposit accounts to extend credit to people who
have traditionally been barred from getting them, the Wall
Street Journal reported.
    The plan, part of a government-backed initiative, will
factor in information from applicants' checking or savings
accounts at other financial institutions to increase their
chances of approval for getting credit cards, the report said on
Thursday, citing people familiar with the matter. (https://on.wsj.com/3w3L6fK)
    The move is aimed at customers who do not have credit scores
but are financially responsible, the report said, adding that
the lenders would consider applicants' account balances over
time and their overdraft histories.
    The banks did not immediately respond to Reuters' requests
for comment.
    The banks are discussing using credit-reporting firms, such
as Equifax  EFX.N , Experian PLC  EXPN.L  and TransUnion
 TRU.N , as well as fintech company Early Warning Services LLC,
for this data sharing, the WSJ report said.
    The new plan marks a significant contrast to the strategy
generally adopted by lenders, who traditionally rely on credit
scores to determine eligibility for a loan. Reforming credit
scores is one of U.S. President Joe Biden's many priorities as
he tries to repair the financial wreckage caused by the COVID-19
pandemic.



    

 (Reporting by Niket Nishant in Bengaluru; Editing by Amy Caren
Daniel)
 ((Niket.Nishant@thomsonreuters.com;))
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