"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."
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.
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