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Hi Nicole,

I dig your concepts. I strongly agree with the OpenIDEO comments a few messages ago.

Part of an Ex. user scenario

1) What are the factors (list them) that lead to denial of a loan application?

Ex. 30 day late payments, 60 day late payments, liens, debt-to-income ratio, etc.

2) What type of loans are being denied by credit unions like Patelco? Provide some data.

Car loans, business loans, lines of credit, home loans? What is the size of the loans/loan volume and what are the interest rates charged for a 600 v. 650 v. 700 credit score (how would you as a credit risk officer analyze or breakdown credit scores) for these types of loans?

3) What are the typical characteristics of the loan applicant for each type of loan?

Ex. mid 30's divorced woman/man, mortgage on house, two kids, one $20K car payment, $15K credit card debt, series of late payments over an 18 month period when she lost her 6 year old $20/hr. job ($40K/yr. and found a new $15/hr or $32K/yr job six months ago.

Rejected for a Home Mortgage Equity Refinance loan


A user scenario might include a $1,000 0% 6 month loan to pay down the the balance on your 23.99% interest on your $8K debt on your Capital One credit card. Another 6 month 0% $500 crowd funded loan to pay off a payday loan. You might include payment of existing credit card debt at $25/month greater than the minimum payment and paying off 2 other sources of debt with one-time $400 expense as part of the SOLUTION package to improve someone's credit 40 points in 6 months. With financial education courses you hear about Project EARN starter savings account which you join. You save $20 a month for 6 months and you receive an additional $50 in free money. You might include an 2 hour class at the library on Excel spreadsheets and planning monthly finances or a class on how to use the latest financial tool App to calculate the best roads (or to monitor your tire pressure for peak efficiency) to take during your commute hours to work which saves you 10% on your gas bill every month. That savings you use to pay off your highest interest rate credit card.

I believe if you couple credit repair services, interest free refinanced debt, history of timely repayment, counseling & financial literacy classes you provide short-term, medium-term and long-term value to the customer and to credit unions.

I would suggest that in the spirit of cooperation having additional Credit Unions like local CDFI Community Trust (based in Oakland & SF part of the Self-Help CU family from North Carolina) involved in a pilot phase along with maybe one other local/regional credit union.

For example, what are the common elements to putting would-be borrowers on a “track to being able to re-apply successfully?”

Ex. Timely repayment history, reduced debt-to-income ratio, new sources of credit, restructuring of higher interest debt, increased savings (starter account with EARN)

(How might we expand our prototyping and testing to gain insight into further desirability and feasibility?)

Answers to this question??

Ex. Expand prototype & testing by expanding the number of credit union customers that fall into the category described earlier. Start with 100 test subjects. Expand to 500, 1,000, 10,000 customers. What would these stages look like? What would we measure?

(We know you’re committed to measurement and tracking, so having a vision for what success looks like for users and for the product in general would also be a great area to explore.)

What would that vision look like in #'s? for 1,000/10,000/100K or 1 million people? What kind of economic activity would that spur? Loan Volume? What kind of impact does a 700 credit score v a 630 credit score have on the interest for a 30 year mortgage? How many of the borrowers fall into this category? How can we quantify the "savings" in interest rate charges and typical long-term debt (5 year car payment & 30 year mortgage).

(Lastly, you might also draw some inspiration from what Jes is working on through her Financial Contract Translator, which is focused on a different stage of the process, but could be very relevant.)

Where does the Financial Contract Translator fit into the User experience/scenario?

Nicole and Luis how can your team add some members to and/or join your idea up with Financial Literacy Project at Oakland/SF libraries and/or with Jes' Financial Contract Translator)? I would recruit some of the other team members to work collaboratively.

How can you expand and refine your Concept??

1) 3 to 5 User Profiles

2) Data for the different types of loans/the loan amounts/the interest rates rejected for 1K, 100K and 1 million consumers.

3) What type of credit score improvement is the goal for each a 30/90/180 day scenario?

4) How much does a consumer save in interest expense based on typical consumer debt profile?

5) Create credit score map

An excellent initiative idea. Sharing the kit with low income middle/high school students in the Bay Area through Citizen After School Programs is a possibility. I have many connections with CCSF teachers who would be very interested in such a proposal. 40% of the CCSF student population comes from underprivledged backgrounds. An added benefit is the variety of immigrants (and Spanish speaking adults) population that could participate.

Sharing the idea/platform with SF Treasurer José Cisneros who implemented a savings program called Kintergarden-to-college could help publicize the initiative. In short, find another partner or two already in the Education arena and/or the Financial services arena, like Project EARN in SF, to help implement (and provide outreach) and test the platform.