The credit industry is transitioning from traditional credit scoring, leaving many without access to finance, to alternative methods using data on transactions and spending. Andrew Endicott, co-founder of Petal, introduced cash flow underwriting, using real-time bank data with traditional credit reports. This approach helped Petal raise nearly $1 billion, showing that alternative methods are beneficial for both consumers and business. Endicott's experiences highlight early challenges like FinTech infrastructure and fraud attacks. Now, as a partner at Gilgamesh Ventures, he invests in early-stage fintech across the Americas, focusing on companies in the United States, Brazil, and Mexico.
The credit industry is shifting how it evaluates borrowers. Traditional credit scoring has left over a billion people without access to financial services, but lenders are increasingly turning to alternative data-bank transactions, spending patterns, real-time financial behavior-to make more informed decisions about creditworthiness.
As co-founder of Petal, Andrew Endicott pioneered "cash flow underwriting"-using real-time bank data alongside traditional credit reports to approve people for credit cards who would otherwise be turned away.
Endicott's approach worked: Petal raised nearly $1 billion, proving that alternative underwriting isn't just better for consumers-it's good business.
Petal faced significant hurdles in its early days, including a lack of FinTech infrastructure and sophisticated fraud attacks that required constant innovation.
Collection
[
|
...
]