We’re thrilled to introduce our new Cash Advance Score. This new Score offers a risk assessment of a user’s ability to repay specific cash advance amounts.
The Cash Advance Score is trained on millions of cash advances and hundreds of Attributes such as overdraft fees, changes in income, balance trends, and more.
Use Cases
Introduce Higher Advance Amounts
The new Score minimizes the risk associated with introducing higher advance amounts by removing the guesswork on how your users would repay these advances. Instead, you can use a high Cash Advance Score threshold for approval, and gradually lower this as you observe the repayment rate.
Reduce Cash Advance Defaults
Reject poor-scoring users who would have otherwise been approved.
Increase Approvals
Approve high-scoring users who would have otherwise been denied.
Minimize Portfolio Risk
The new Score allows you to minimize the overall risk in your portfolio by giving higher advance amounts to the least risky users, and lower amounts (or denying advances) to the riskiest users.
You can get started with our new Score here: https://docs.pave.dev/scores/get-cash-advance-score
Read more about our Cash Advance use case here.
Here are some FAQs to get you started
What’s the performance of the Cash Advance Score model?
The Cash Advance Score model had an AUC of 0.86 on a holdout dataset.
How do I access the Cash Advance Score?
You can get a user’s Cash Advance Score by calling the GET /users/{user_id}/scores/cash_advance endpoint.
In addition, you can view the Cash Advance Score across your entire user base through our Cashflow Analytics for Snowflake. Contact us at api@pave.dev if you require access to this product.
Will you provide analytics on how the Cash Advance Score performs on my data?
Once we receive live access to your underwriting and collections data, we can generate a dashboard with analytics on how the Cash Advance Score performs on your advances.
See the example image below.
What’s the repayment period predicted by the Cash Advance Score model? How can I specify a different repayment period?
The Cash Advance Score predicts the likelihood of repayment within 30 days. However, higher Scores are also correlated with shorter repayment periods. For example, for 80% chance of repayment, a user may need a score of:
- 981 for 7 days repayment
- 767 for 15 days repayment
- 657 for 30 days repayment
- 580 for 45 days repayment
Thus, if you want to optimize repayments for periods shorter than 30 days, you can increase the minimum Score threshold. Inversely, you can decrease this threshold if you want to optimize repayments for periods longer than 30 days.
What threshold do you suggest I use to underwrite my users?
The minimum Score threshold you use in your underwriting will depend on your risk appetite as well as the advance amount that you’re evaluating. Generally, we divide the Cash Advance Score as follows:
- Excellent (657 to 999): +80% chance of being repaid within 30 days
- Good (437 to 656): 60% to 80% chance of being repaid within 30 days
- Average (287 to 436): 40% to 60% chance of being repaid within 30 days
- Poor (100 to 286): Less than 40% chance of being repaid within 30 days
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