Ribbit, the AI-powered financial data and technology company that provides instant analytics of bank behavior, has announced a Series A funding, a press release announced on Tuesday (March 15).
The money will be used to support growth and accelerate the company’s hiring plans.
ABS Capital led the round, and other financial services industry experts also participated.
ABS Capital works with up-and-coming software and service providers that are making strides in finance.
The report notes that the US Office of the Comptroller of the Currency, nearly 50 million Americans have no credit score and cannot access loan products or other financial services, and the pandemic has worsened all of this.
Ribbit was formed in 2020 and the release says the company wants to combat these issues and better assess risk and fraud.
“Unique circumstances have created an opportunity for Ribbit to make an impact,” said Shawn Princell, CEO of Ribbit. “We stand at the intersection of uncharted economic shifts, dramatic shifts in financial health, and exciting new opportunities in open banking.”
PYMNTS wrote that undocumented workers, often cut off from the financial system in the United States, struggle to get a non-predatory car loan.
According to Daniel Chu, founder and CEO of Tricolor Holdings, himself the son of immigrants, he could identify with the “desire to come to the United States and build a better life”. He said his company was founded to try to address challenges such as access to mobility.
Read more: Undocumented and unbanked consumers turn to data-rich financial allies for car loans
Tricolor is one of many companies working on better access to loans for the underbanked or unbanked.
Chu told PYMNTS that credit scores and pay stubs, while usually important elements for taking out a car loan, aren’t the only attributes to assess creditworthiness.