Trust Science

🚀 Trust Science Named a Fastest Growing Company in 2023! 🏆 For the second consecutive year, Trust Science has secured the prestigious #20 spot on The Globe and Mail's list of Top Growing Companies for 2023. This recognition by Canada's equivalent of the Wall Street Journal is a testament to our unwavering commitment to innovation and excellence in the lending industry. Further, this recognition builds on this year's Top-30 position on the Financial Times and Statista's list of Fastest Growing Companies in the Western Hemisphere! Our three-year revenue growth has skyrocketed, exceeding a remarkable 1,800%, a remarkable achievement that reflects our dedication to redefining lending through cutting-edge technology. At Trust Science, we are more than just a score provider; we've evolved into a comprehensive lending solutions provider. From our Virtual Loans Officer automating lending decisions to Generative AI products collecting real-time data, we empower lenders to serve more customers with less risk. What truly sets us apart is our commitment to fairness and inclusion. With our explainable AI platform, we ensure that no one is left behind in the modern economy. Our mission is to repair the Credit Catch-22™ and foster financial inclusion. As we continue to innovate and grow, we look forward to another year of success and making an impact. Read the full press release here: https://lnkd.in/gAEPtfcX #FastestGrowingCompany #FinancialInclusion #Innovation #Lending #AI 

Join us on August 14th, 2024 at 12:00pm ET for our Q2 State of Lending Webinar! 📅 Colin Tran, EVP Corporate Affairs at Trust Science, will be sharing lending trends & insights from Q2 2024, including: ▪ Macroeconomic outlook and impact on consumers and lenders ▪ Origination patterns and finding opportunities ▪ Default trends and threats ▪ Lender strategies on handling incoming volatility 💡 Don't miss it! Sign up here:  https://lnkd.in/dSxBMW-y

Weekly Insight 💡 Canadian Inflation for June came in slightly below expectations at 2.7% for all-items, according to last week's CPI release from StatsCan. After the release, the implied probability of a rate cut from the Bank of Canada (BoC) in July increased from 82% to 93% in swap markets. Looking at the three largest product categories of the all-item CPI basket, it can be seen that some components of CPI have been ‘stickier’ at above target rates. Shelter growth (29.15% of the CPI basket) remains elevated, driven by increasing rental and interest expenses; further rate cuts will temper increases in mortgage interest costs, but at the risk of increasing already high residential real estate values. Transport and food growth (16.90% and 16.69% of the CPI basket, respectively) on the other hand have fallen significantly, in part due to softening in vehicle prices and food production costs. Keep your eyes peeled for the next BoC interest rate announcement on July 24th!

Weekly Insight 🚗📈 Subprime Automotive Loans are off to their best start since 2021. Through the first 4 months of 2024, auto loans have exhibited lower delinquency rates than in the last two years. This improvement is partly attributed to tightened risk measures implemented by lenders across the industry, as well as general improvement in economic outlook. To lower delinquency rates, many lenders have adjusted their risk tier mixes at the time of origination, shifting up the credit risk spectrum. This impacted delinquencies as auto loans have been trending lower since the highs of 2022. The plot below displays the vintage delinquency of subprime auto loans, a method used to measure the performance of loans with similar life cycles and risk characteristics. This is done by grouping loans into buckets of origination period and tracking their performance as they mature. Vintage curves accurately measure the current performance of loans and provide lenders with an insightful forecast of future performance.

Announcing our partnership with Conecta Marketing Group LLC 👏 Trust Science is proud to be partnering with Conecta Marketing Group™, a digital marketing and communications platform. The strategic partnership will enhance Conecta’s unified marketing platform to help lenders find Invisible Prime™ borrowers. “Andres Huertas and the team at Conecta Marketing offer a depth of digital communications and marketing expertise that is often unattainable by many lenders,” said Evan Chrapko, Founder & CEO of Trust Science. “We believe that the combination of our capabilities will allow lenders to truly capture and better serve their digital customer segments, and Conecta’s digital communications ecosystem will further enhance the value of the Trust Science platform to lenders seeking to improve their digital customer experience.” View the full press release here: https://lnkd.in/eAuAQW3T

🚀 Check out our newest blog: "Beyond the Numbers: Addressing Systemic Challenges in Credit Scoring" Credit scores play a pivotal role in determining access to wealth, housing, and job opportunities. However, legacies of redlining and other systemic challenges have some groups slipping between the cracks of conventional credit. By expanding the definition of creditworthiness, alternative scoring models can break down these barriers and make credit scoring more inclusive, adaptable, and accessible. Interested? Read the full blog here: https://lnkd.in/ewbanEFx

🏆 Our COO Eiffel Sun, MMF, CFA, FRM was awarded Cherokee Media Group's "Remarketing Under 40" award! This award is a testament to Eiffel's commitment to leadership and innovation in the auto lending industry. We look forward to cheering him on through his future successes. Congratulations! 🎉

Wishing everyone a safe and happy 4th of July!

Weekly Insight 📊 Non-revolving credit, including auto, student, and personal loans, increased by $6.8 billion in April, the largest increase since June 2023 according to the recent Federal Reserve Consumer Credit report. Conversely, revolving credit balances decreased for the first time since 2020 after nearly 4 years of strong average growth, dropping $462 million. Total credit rose $6.4 billion after a $1.1 billion decrease in March. The persistence of high interest rates and increasing charged-off balances may explain the recent pullback in revolving credit, as households attempt to keep their card balances in check. Inflation-adjusted consumer spending fell 0.1% in April as purchases of everyday goods fell and spending on services moderated. Corresponding to macro-level non-revolving credit levels, our auto and installment lender portfolios have seen a slight uptake in originations through April. With auto sales expected to pick up throughout the year, lenders can anticipate this increase in non-revolving loan originations to persist through 2024.

Last week, our team came together for an All-Hands gathering in Edmonton! It was an incredible week of collaboration, connection, and celebration. Thank you to our amazing team for making this all happen! 🎉