Tricolor, a tech-enabled Community Development Financial Institution (CDFI) that’s said to be the nation’s largest used vehicle retailer and lender for Hispanic consumers, has named Stephanie Alsbrooks Hanson as the president of the newly-formed Tricolor Financial.
The new venture is expected to extend its proprietary AI-powered tech through a Software as a Service (SaaS) model.
With its headquarters in Dallas, Tricolor Auto Group in Texas and Ganas Auto Group in California use data analytics and technology to advance financial inclusion to a highly underserved market and offer credit-building auto loans to individuals with no or limited credit history.
Since its founding, Tricolor says it has disbursed over $1 billion in affordable loans to customers. Tricolor works to provide its customers with access to affordable financing on high-quality, certified vehicles using an AI-powered model to segment risk.
“This is an exciting day for Tricolor as we significantly grow our capacity to fulfill our core mission by launching a new initiative to leverage our capability to ‘score the unscoreable,’” Tricolor founder and CEO Daniel Chu said in a statement. “I am thrilled to welcome Stephanie to the team as she helps scale this endeavor nationally. Her experience as a technologist and innovator in consumer lending is unrivaled, making her the perfect person to lead this next phase of mission-driven growth.”
Tricolor Financial’s new president Stephanie Alsbrooks Hanson is the founder and former CEO of defi Solutions, a cloud-based solution for originating and servicing consumer loans. Building Defi Solutions from the ground up, she assembled an organization of 100 personnel and drove the company to $20M in revenue and a $100M valuation, according to a statement.
Prior to the business merging with Sagent Lending Technologies in 2019, Hanson raised funding from Bain Capital Ventures and drew over 100 lenders to the company. In addition, Hanson was recognized as E&Y’s Entrepreneur of the Year Award Winner for the Southwest Region in 2017 and was named a ‘40 Under 40’ Honoree by Dallas Business Journal in 2014.
“Understanding the challenges of launching and growing a business, I look forward to catalyzing new strategic relationships and opportunities to pursue this next important phase of Tricolor’s growth,” Hanson said in a statement.
The Consumer Financial Protection Bureau (CFPB) recently reported that 26 million people in the United States are “credit invisible” and an additional 19 million are “unscoreable,” according to a statement. In other words, nearly 45 million people in the U.S. who lack a credit score results in limited options for them when trying to access financing for a major purchase.
The company’s new venture plans to solve this problem by continuing to transform consumer credit for the underserved Hispanic population.
Tricolor’s application of AI and other advanced tech plans to combine used vehicle sales and lending platforms to deliver used vehicles at affordable loan rates for members of the Hispanic community who are credit invisible.
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