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Alchemy Lending Operating System Releases Personal Income & Stacking Detection Algorithm Powered By Plaid

Alchemy Lending Operating System Releases Personal Income & Stacking Detection Algorithm Powered By Plaid April 22, 2019Leave a comment

Pleasant Grove, UT (April 22nd, 2019) – For Immediate Release – Alchemy Technology, Inc., industry-leading lending as a service organization today announces the launch of personal income and stacking detection technology and algorithms power by Plaid, Inc. 

“Plaid has been one of the foundation blocks of next FinTech evolution, integrating Alchemy Lending Operating System extends both of our companies vision to support the greater financial services community. We, at Alchemy, are constantly deploying new, innovative products to the market. Leveraging banking transactional data to accurately detect personal income and stacking behaviors will enable our clients to avoid credit risk and offer more affordable products to their clients.” – Timothy Li, Founder, Alchemy Technology Inc..

Income Detection

Plaid has been the forefront of providing one of the fundamental building blocks of many FinTech companies in the past. The power of banking information adds another step in the applicant’s income verification process.

Income verification and detection remain an elusive topic for many lenders and banks alike. Whether you are offering a personal loan or financing your mortgage, ability to pay is one of the most important aspects of your qualification criteria besides credit.

Traditionally, lenders and banks need to scan volumes of bank statements, W2s, Payroll and Tax Return documents. This makes the entire application process unenjoyable for the consumers and adds additional time and material for banks and mortgage lenders to sort through and digitize these documents.

With the advent of Plaid and other third-party banking transaction middleware, lenders and mortgage banks can leverage this information and reliably calculate the borrowers’ income, affordability, ability to pay and employability.

The combination of Plaid data and Alchemy’s algorithm enables our clients to continue their journey of automation. We are making this technology available to everyone on our Lending Operating System as of today.

Stacking Detection

One of the challenges of personal lending is the ability to detect the stacking behavior of a borrower.

Stacking is defined as having taken out multiple loans simultaneously that hampers the consumer’s ability to pay.

In other words, if 30% of the consumer’s income is, say, $500. This person may only be able to borrow an amount which the loan’s repayment is at most $500. If the borrower uses more than 30% of their net income to pay down debt obligations, this consumer may put him/herself in jeopardy. The likelihood of default increases. 

One may argue that lenders won’t be able to curtail this behavior but there are things we can do help our consumers to avoid these situations. We can never assume to understand what is going on in the end consumer’s financial life, but reducing the amount of debt taken on by our consumers is the right thing to do.

Alchemy today releases a set of algorithms to help our partners to calculate debt to income ratio, post debt to income ratio (existing debt + the repayment amount of the financing options being offered). 

We are also making a learning algorithm to constantly update payments made to and loans made by other lenders that may help our clients to avoid overextending credit to their consumers. 

We believe our stacking solution powered by Plaid will not only help our partners to manage their credit risk but it will also help their users to have a better experience in the long run.

There are many reasons why consumers are looking for credit, even at the risk of putting themselves into a heavier financial burden, but we are leveraging technology and data to enable our clients to have these tools available to eliminate help their clients when they need it.

A History of Innovation

We are constantly evaluating the best set of tools to integrate with Alchemy Lending Operating System. Whether it is third party databases or other algorithmic based companies, we constantly looking in ways to help our clients to solve the most difficult issues at hand.

If you are interested in building new and innovative solutions with us, please send me an email or email We would love to speak with you.


Our singular vision is to enable the next generation of FinTech evolution with domain knowledge, technology, artificial neural network algorithm, and compliance-driven serving call center to deliver the best product experience for our clients, their partners and ultimately consumers.

About Alchemy Technology, Inc.

Alchemy Technology Inc. is an industry first lending as a service company offering our of the box technology, algorithms and servicing to launch FinTech products for FinTech startups, specialty financing companies and Banks alike. Our vertical workflow specializes in Student Lending, and Home Improvement spaces. Our technology offering includes website / mobile app, loan origination system, decision engine, loan management system, payment gateways, and secondary market access.

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