Sable: how the American startup helps immigrants to build a credit history

The realities of life in the United States may strike at the desire of the immigrant to the American dream. To US banks gave you money, you must have a good credit rating and history — all this is not a person, who recently appeared in the country. Seeing how the immigrants are struggling to access Finance, Naveen Qureshi, towers Wilen Andrew and Paul created a startup Sable platform for immigrants to help get a credit history, tells YourStory.

Sable: как американский стартап помогает иммигрантам создавать кредитную историю

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“We solve the problem of access to credit for people who are new in America. American banks and FINTECH banks work on inherited models of credit risk, who look at the credit history in the US before providing a loan to the client. Building credit history takes years, and the immigrants it is not, so do not give them money. In addition, new immigrants also face problems with opening Bank accounts,” says co-founder and product Director Naveen Qureshi.

Immigrants were also not available and other documents such as social security number, when people move to the United States. The student may also be eligible to receive identity cards for 4 years or more.

The history of the Foundation

The Sable company have created their own model of credit risk — the first of its kind — to determine the rating of the credit risk of the client without having to have a credit history in USA, but keeping the indicators of default for loans below us industry standards. In addition, Sable uses additional documents instead of the SSN for identity verification.

The founders of the Sable was found at Columbia business school in new York in 2017.

Naveen moved from Toronto to new York and, as an immigrant faced with the problems of the US financial system. Its canadian credit history didn’t help her South of the border. She met Andrew, who went through the same tests, when I moved from Europe to study at American graduate school. They drew on the work of Towers (the only American in the team). All three have corporate experience, but Joshua to startup worked at Capital One. The trio spent a few weeks talking with 300 immigrants, to determine the challenges they face, define target market, understand the rules and evaluate revenue streams. Sable then started to cooperate with banks and alternative providers of data transmission services to create a model of underwriting.

According to Pew Research, only in 2016 came to America more than a million immigrants. And all they needed to build their credit rating for different needs. Credit history required for immigrants in different situations — from getting a phone plan and renting an apartment to getting a job or mortgage, and all that is possible between these tasks. The founders say that Sable opened the door for immigrants to allow them to start on equal footing with the Americans.

“Our vision is to become a global Bank and help the immigrants to move from any country to another with their financial needs,” adds Naveen.

The model of the Bank

Sable operates as the Bank-the applicant, also called start-up Bank, which competes with larger conventional banks in the sphere of retail financial services, with a full range of banking and credit products targeted at immigrants. Sable app is available on iOS for quick identity verification. Naveen explains that within 5 minutes the user will be virtual debit and credit cards that they can use immediately, waiting for the arrival of the physical card in the mail.

Because immigrants have no credit history USA, in addition to the data of the credit Bureau, Sable alternative uses proprietary data to determine the credit risk of each applicant and provides access to clients. According to Naveen, the immigrant may register your Bank account in the United States and credit card without having to have a social security number and even before moving to the United States. The startup offers unsecured credit card with high credit limits and zero Commission, live scores and benefits specially designed for international clients, such as free international money transfers.

Sable went through the business incubator Y Combinator in the summer of 2019. The startup has attracted seed funds Y Combinator in the amount of $ 120,000. On their model the nun says: “Our current offers — debit card (linked to the current account) and a credit card, so all of our business models / revenue streams at this stage is the credit economy and banking. We generate revenue through three streams: an interchange fee, a percentage of each transaction that is committed by the client, and with the launch of the rewards card we will earn a monthly fee for a credit card with rewards”.

The following steps

By the end of 2018, the US banking system had assets of $ 17.9 trillion and net profit of $ 236,8 billion dollars. This sector supports the world’s largest economy with the largest variety of banking institutions and concentration of private credit in any part of the world. Opportunities in the U.S. economy is huge when it comes to customer service. Based on customer feedback and needs, the startup plans to release more products and features over the next 18 months.

“We have a pilot program unsecured loan. Unsecured credit to customers will not need to pay the secure Deposit, and they will receive higher limits than the starting cards or secured cards. This is a game changer. We have already received a lot of positive feedback,” says Naveen.

Sable will also launch the app for Android. A startup does not want to disclose any financial information at the moment, but says that it competes with NovaCredit, CreditStack and Petal.

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