Currently bank lending relies heavily on human decision-making. Consequently, their decisions are not based solely on empirical creditworthiness and financial merit, which can affect a person’s fair access to capital—the number one barrier to wealth creation. Good Tree Capital was founded on this belief, and it is our mission to create fair access to capital for all.
In 2015, we built a proprietary algorithm that assesses credit risk only using factors with predictive value (e.g. monthly income, years in business), while avoiding factors with no predictive value (e.g. gender, race). The result, and our core competitive advantage, is innovative technology that determines the likelihood of default with significantly more accuracy, speed and at a lower cost than traditional banks.