NEFT Closes $10M in Series A Funding and Appoints John Sculley to Board

With its mPowerCredit platform set to launch in 2016, NEFT LCC has announced the closing of $10M in funding and

Collecting borrower data is the key driver for lenders to profile their customers and understand their risks. Using both internal information of their clients as well as services from credit bureaus such as Experian, TransUnion and Equifax, US lenders are able to build credit scores for their borrowers that take into consideration their loan history and track record of paying back debt.

As the big data sector has evolved and allows for an increasing set of variables to be reviewed, new methods for profiling consumer credit risk are emerging that go beyond just their credit scores. For many consumers with minimal credit history due to their young age or simply shunning the use of taking on debt in the past, these new alternative credit ratings provide them easier access to sourcing loans.

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Soon entering the US consumer credit analysis sector is NEFT LCC, which plans on launching its first product, the mPowerCredit platform, in 2016. With its launch, mPowerCredit will be taking a different approach for improving the quality of data in the consumer credit industry. The product is a consumer facing platform that will allow borrowers to enhance their credit scores in real-time.

According to NEFT, one of the liabilities of traditional scores from credit bureaus is that payment information from loans can take over 30 days to get included in a borrower’s rating. In addition, in the event of an error hampering a borrower’s credit score, it can take up to 90 days for a correction to be made. As a result, with mPowerCredit, NEFT aims to reduce the friction between a borrower’s loan history and information being accessed by lenders.

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Helping to boost its operations and coming launch of mPowerCredit, NEFT LLC announced that it has closed $10 million in Series A funding. According to NEFT, participating in the round were former CEO of Morgan Stanley, John Mack, former CEO of Nordstrom, Kevin Knight, and John Sculley, a former CEO of Pepsi, but known best for his CEO role at Apple until 1993. NEFT explained that the funding will be used to “accelerate the development of its first product offering, mPowerCredit.”

Executive Appointments

In addition to the funding, NEFT also announced twin executive appointments. Joining the firm as a member of its board of directors is the aforementioned Kevin Knight. As part of his role with NEFT, Knight will be expected to advise the firm on strategic partnerships and providing advice on the development of its solutions.

Also coming on board is John Sculley, who in addition to being an investor, joins NEFT as its Vice Chairman of the board of directors. On his appointment, Sculley stated, “NEFT is one of those unicorn companies to come along with a unique patented solution that rivals the status quo and is poised to dramatically change the consumer credit industry.”

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