- Experian launched Cashflow Attributes, a tool to offer lenders more data about underserved consumers.
- Cashflow Attributes offers lenders visibility into more than 900 consumer attributes that reflect consumers’ cashflow and affordability.
- Lenders can use the insights to aid in their underwriting decisions, drive more personalized experiences, and help improve financial management tools.
Information services company Experian unveiled Cashflow Attributes yesterday, a new solution that leverages open banking to help underserved consumers access fair and affordable credit.
Cashflow Attributes uses more than 900 income, cashflow, and affordability attributes to allow lenders to integrate applicants’ banking data into the decision-making process. Experian expects the new solution will help some of the 106 million U.S. consumers who are considered credit invisible, unscoreable by conventional credit scores, or have a subprime or below credit score and are therefore unable to secure credit at mainstream rates. Credit Attributes layers traditional credit report data with cashflow insights to create a more detailed view of a consumer’s financial health and creditworthiness.
“Supporting financial inclusion and creating an equitable path to credit is ingrained in our DNA,” said Experian Financial and Marketing Services Group President Scott Brown. “We believe banking information holds untapped potential and that our new Cashflow Attributes represent an exciting step forward that can easily be integrated into lending decisions. As we look ahead, we will continue to leverage our core credit data, new data elements and our analytics expertise to unlock new opportunities for both consumers and businesses.”
To use Cashflow Attributes, lenders first provide Experian with depersonalized transaction information from their existing customers or from customers at other banks, as long as they have consumer-permissioned account access. Experian uses its categorization model to analyze and categorize the consumer transaction data and sends the lender the transaction categories and predictive attributes. Lenders can use these categories and attributes to aid in their underwriting decisions, drive more personalized experiences, and help improve financial management tools.
Founded in 1980 and originally known for its consumer credit reporting, Experian has extensive access to data and has added fraud prevention offerings, identity theft protection, credit building tools, and a loan comparison marketplace. On the commercial side, Experian provides a range of services for small businesses, including business credit reporting, marketing products and services, debt collection tools, and more. The company is headquartered in Dublin, Ireland, and is listed on the London Stock Exchange under the ticker EXPN and has a market capitalization of $39.5 billion.