Announcing the Cash Advance History Score

We’ve released our new Cash Advance History Score (CAHS)! This score showcases a user’s repayment history across multiple cash advance providers.

A higher score corresponds to better repayment behavior by the user. For example, a score of 100 shows that the user never repaid any cash advance in the specified interval within 7, 15, or 30 days, while a score of 999 shows that the user has had multiple cash advances in the past and repaid all of them within 7, 15, or 30 days.

How it works

• Pave’s matching algorithm accurately labels every cash advance and its corresponding repayment.
• Pave calculates a 3-digit score that summarizes the user’s cash advances for specific amounts and their repayment rates.
• The scores are broken down as follows:
  • Excellent: 850 to 999
  • Good: 720 to 849
  • Average: 590 to 719
  • Poor: 100 to 589

Why this matters

• When a new user requests a cash advance, they usually get approved for a small advance
• A user must prove their creditworthiness in order to graduate to larger cash advances. This is a lengthy process of proving they can repay over months, which leads to a bad experience and eventual churn.
• The Cash Advance History Score allows a provider to assess a new user’s repayment history across other providers in order to offer a higher cash advance amount upfront. This results in a better user experience, increased retention, and increased average revenue per user (ARPU).

Use Cases

• Offer personalized cash advance amounts or credit limits based on the user’s CAHS
• Offer higher initial advances to increase retention for users with good or excellent scores
• Increase approvals for new users with good or excellent scores
• Reduce credit limits or deny users with average or poor scores

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