Global Analytics of San Diego, which uses big data to create a real-time credit profile of marginal borrowers, said Monday it received $ 30 million in debt financing to help fuel the expansion of its lending platform Zebit brand.
Crystal Financial of Boston has provided the capital, which will be used to bolster Global Analytics’ existing online lending operations in the UK, said managing director Michael Thiemann.
But the funding will also free up money for Global Analytics to grow in the United States.
Zebit uses complex mathematical formulas and unusual data to identify fraud and credit risks for consumers without a bank account or who are not eligible for bank loans – estimated at 60 million people in the United States alone.
To determine the credit risk of these borrowers, Zebit examines traditional credit screening data such as vehicle registrations or phone numbers and address checks. But it also examines unusual information such as web cookie data and social media posts – usually accessed with permission from potential borrowers.
Web cookies can indicate whether borrowers visit gambling sites or job training URLs. Social media can reveal how many friends a borrower has and how long they have had them – signs of stability.
The company’s Zebit brand has been operating in the UK since 2008, providing installment loans online. Global Analytics relies on its own balance sheet to fund these loans, which typically have a term of six months and an average of around $ 350.
The company hopes to eventually license its technology and partner with lenders in the US market. Using the Zebit analytics platform, lenders could potentially offer financing to borrowers with limited or damaged credit, including installment loans, lines of credit, and secured and unsecured credit.
“Thanks to our technology, we are able to offer the most financially vulnerable people better access to credit,” said Thiemann. “Using sciences like Adaptive Data Fusion allows us to achieve better underwriting and lower fraud rates, which allows us to offer higher rates than traditional underwriting. It’s an industry that will be won over by analytics – and we know analytics. “
For the first three US states where Global Analytics has applied for loan licenses, however, it does not have a lending institution behind it. It will offer Zebit online loans financed by its own balance sheet.
But Thiemann stressed that the company is still on the lookout for potential lenders to use its technology. This is one of the reasons he is starting out in three small states initially, not big states like New York or California, he said.
“We need to get involved in the United States,” he said. “But we will continue to talk to the partners.”
Like most software analysis companies in San Diego, Global Analytics has its roots in HNC Software, which developed the powerful Falcon Fraud Manager predictive analytics system to uncover fake credit card transactions. HNC was sold to sheet music supplier FICO Fair Isaac over ten years ago.
Including this latest funding found, Global Analytics has raised $ 95 million in debt and equity since its inception as a consulting firm in 2003.