Community Development Financial Institutions

Nearly every fundamental building block to achieving financial well-being is impacted by one’s criminal history, which also impacts their traditional credit score rating. And while there is insufficient data to articulate the impact of having a record on banking outcomes there is anecdotal and tangential evidence to show how a record keeps a person locked into low-to-moderate income (LMI) jobs. Additionally, we know that limited earning potential often leads to one being unbanked or underbanked.

As a result, people living with records become prime customers for Community Development Financial Institutions (CDFIs) if only many more of them knew about CDFIs. Offering your products and services while building a bridge to mainstream banking is a win-win for people, communities and you.

Why Small Business Lenders?

We currently have 70 million Americans living with a record and by the year 2030, that number is expected to rise to 100 million people.

Individuals with records face many unique challenges including the loss of working years and family assets. This results in people across the country turning to ownership, even if out of necessity, to gain hope of financial empowerment. Know-how, network and capital remain key ingredients to a thriving business and again this is where we believe CDFIs play a critical role. If an entrepreneur with a record can start and scale their business it has ripple effects on families and communities. The data shows the value of affinity hiring - meaning entrepreneurs with records are likely to hire workers with records - and we know that small business owners with records will directly boost local economies with their success.

Energized by momentum nationwide to support entrepreneurs with records, we are rolling out an aggressive nationwide challenge. We want to help a cohort of 25 CDFIs identify and capitalize 1,000 businesses owned and operated by entrepreneurs with records nationwide.

Why A Cohort Model

We’ve listened to 40+ CDFIs from all across the country and we learned a few things. For example, we learned that solving business friction around bias, deal flow, policy barriers, and even standardization is something that many organizations would like to do as a community-of-practice. So we’ve built a way for CDFIs to use R3 Score as a customer but also have the white-glove support needed to ensure that the tool is implemented properly.

Through the cohort model, your organization will be able to connect with mission-aligned partners who are also technology-minded, forward-thinking and innovative. By using R3 Score in a community of your peers you will discover how to operationalize a disruptive technology that will accelerate your business and scale your impact in the communities you serve.

Don’t miss out on your opportunity to learn and network with your peers as industry leaders.

Our Solution

Financial Inclusion & Economic Empowerment

Operationalizing inclusion is complicated. It doesn’t have to be.

Our algorithm and web-based platform helps CDFIs pinpoint the who and the how when serving a customer with a criminal record. We make having a tool to institutionalize inclusion actionable and attainable.

  1. Our technology produces a unique score ranging from 300 - 850
  2. The score is then accompanied by a nuanced customer segmentation report
  3. Together, the number and report provide actionable information to better align products and services to customers