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Credit Karma has more than 110 million users and a customer approval rate of 90%, but that was not always the case. When the company launched 14 years ago, its approval percentage was in the single digits, Chief Technical Officer Ryan Graciano said during VentureBet’s Virtual Transform 2021 conference last week.

The reason for this change? Big data and machine learning.

When Credit Karma began in 2007, the company relied on traditional datacenters because the cloud was not yet part of the conversation. “There would have been trouble with banking partners and credit bureaus,” said Gran banking Ciano, adding that “compliance people wouldn’t even let you in the door.”

The company excelled in hardware procurement and systems management, but physical hardware seemed to be limited.

“The thing about big data and the cloud is that big data moves really fast, [and] Techniques change very quickly, ”said Graciano. “If you need a six- to nine-month hardware acquisition cycle [and] A significant platform change, you will go far behind the turn. “

That was the first issue Karma tried to address – the company needed more resilience. Not only was it time to set up the hardware, but the hardware requirements to keep up with the new capabilities were changing rapidly and the fact that the techno st g could not keep up.

Credit Karma hurt Google Cloud and its machine learning .Fearings because BigQuery and TenserFlow have made it easier to handle big data.

Machine Learning Evolution

Machine learning efforts were initially very straightforward. The company applied simple linear regression models to anonymous data from its databases. Later, credit karma graders proceeded to use boosted trees. Nowadays, the company relies on a wide and deep neural network to predict which banks will allow customers, and at what rate. This technique operates about 80% of the methods of credit karma and helps to facilitate an internal system for Darwin, experiment and problem solving.

The platform made up of credit karma is reusable, Graciano said. At the top of the machine learning platform was a recommended engine, and everything else attached to it. Whatever happened with the credit karma came from the system, whether it was receiving an email from the credit karma, push notification or badges on the site.

“All of those things are powered by this same system. And so our data scientists have given us the ability to spend a lot of time on the nuts and bolts of how the system will work.”

Adding new data sources and clearing data is much easier than defining new algorithms. One way to improve the system is to add orthogonal data instead of innovations to the or algorithm, Graciano said. The company’s forecasting capabilities expanded as more data sources were added.

“Getting those extra elements is actually more powerful than the 32nd iteration of our algorithm,” Graciano said.

Graciano acknowledged that it took a while to figure out what credit karma needed – such as a platform that allows data scientists to automate retraining models.

“I would say we stumble upon many, many issues,” Graciano said.

The cloud was the way forward

Graciano recommends that businesses move to the cloud because it enhances the interdependence within the external ecosystem.

“If you’re looking for an improvement, you’ll get more lift by adding orthogonal data than you would normally innovate on your algorithm.” For Credit Karma, this was a strategic decision that paid off the longevity of the platform, allowing it to collect useful data and allow the company to reap its benefits.

“There’s nothing more strategic for us than data, and there’s a lot of power over our data,” Graciano said. Many businesses will probably take this step for the same reason, shifting from a cynical way of developing software to a more experimental framework.


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