Affirm Deployed New Real-Time Underwriting Model

The fintech company has launched a transformer-based system to approve more consumers at checkout.

Updated on Oct. 5, 2026 in Economic Indicators

Isometric editorial illustration of matte metallic lattice structures and light conduits, representing modular data processing for financial credit underwriting. — Affirm has deployed a transformer-based underwriting model using real-time data to increase purchase approvals for consumers with limited credit histories. AI Illustration. Upload story photo >

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Affirm has deployed a new transformer-based underwriting model that uses real-time data to approve shoppers with limited credit histories. This technological shift resulted in a 3.4% increase in completed purchases at the point of sale.

Why it matters

By leveraging existing credit bureau data to identify patterns in consumer behavior, the new model improves decision-making accuracy for individuals without a FICO score. This expansion enables the company to approve more users while maintaining its risk assessment standards.

Affirm processed 53 million transactions in fiscal Q4, contributing to a total gross merchandise volume of $14.1 billion. The company now serves 27.8 million active consumers, reflecting a 21% growth in the user base.

The players

Affirm

Headquartered in San Francisco, this financial technology company provides installment loan services for consumers at the point of sale.

The details

The transformer-based system analyzes payment histories and balances in real time to assess individual purchase eligibility. While transaction volume saw significant growth, the company noted a 4% decline in the average order value per transaction.

Fiscal Q4 2026 saw the company process 53 million total transactions.
Transactions per active consumer reached 7.0 over the trailing 12 months.

Market Landscape

This development aligns with the broader industry trend of adopting machine learning to bypass traditional FICO-based credit barriers. The move strengthens Affirm's competitive position by expanding its addressable market to include consumers previously ignored by legacy underwriting systems.

Consumers with limited credit histories or no FICO score may find it easier to qualify for point-of-sale financing at participating retailers. Shoppers should remain aware that these financing options impact overall personal debt levels and individual budget management.

The takeaway

The deployment of transformer models into financial underwriting marks a significant shift in how lenders view creditworthiness for thin-file consumers. Adopting these tools allows companies to increase transaction volume while reaching demographics that traditional banking systems often overlook.