CryptorInsight
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Bullish
$HUMA Credit Model Analysis: Huma Finance's TVM vs. Traditional FICO Scores
This report provides an analysis of the credit underwriting model utilized by Huma Finance ($HUMA ), priced at $0.02822. The traditional credit model, based on FICO scores, is a lagging indicator that assesses a borrower's past performance. Its weakness is its inability to accurately price credit for individuals with non-traditional income streams or limited credit history.
$HUMA Time Value of Money (TVM) model, in contrast, is a **forward-looking indicator**. By algorithmically assessing the value of future, verifiable cash flows (such as invoices or salary deposits), it provides a more accurate and dynamic measure of a borrower's true ability to pay. Our assessment is that the TVM model represents a superior underwriting methodology for the modern economy, particularly for freelancers, gig workers, and SMEs. It replaces a static, historical snapshot with a dynamic, real-time assessment of creditworthiness.
#HumaFinance @Huma Finance 🟣 #huma
This report provides an analysis of the credit underwriting model utilized by Huma Finance ($HUMA ), priced at $0.02822. The traditional credit model, based on FICO scores, is a lagging indicator that assesses a borrower's past performance. Its weakness is its inability to accurately price credit for individuals with non-traditional income streams or limited credit history.
$HUMA Time Value of Money (TVM) model, in contrast, is a **forward-looking indicator**. By algorithmically assessing the value of future, verifiable cash flows (such as invoices or salary deposits), it provides a more accurate and dynamic measure of a borrower's true ability to pay. Our assessment is that the TVM model represents a superior underwriting methodology for the modern economy, particularly for freelancers, gig workers, and SMEs. It replaces a static, historical snapshot with a dynamic, real-time assessment of creditworthiness.
#HumaFinance @Huma Finance 🟣 #huma
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