Affirm Holdings launched a new transformer-based AI model for credit underwriting in the U.S. this week. The system analyzes credit history to approve applicants previously declined, including those with thin credit files or no FICO scores.
Initial deployment resulted in a 3.4% increase in completed purchases compared to a control group. These additional loans outperformed similar expansions under previous models.
The technology allows Affirm to grow its customer base and merchant sales volume without increasing overall risk.