- AI technology company Stratyfy announced a strategic partnership with cash flow underwriting and data analytics platform Prism Data.
- Stratyfy will integrate Prism Data’s cash flow data and scoring to improve decision-making for lenders.
- New York-based Stratyfy won Best of Show at FinovateFall 2022.
AI technology company Stratyfy has forged a strategic partnership with cash flow underwriting and data analytics platform Prism Data. Courtesy of the partnership, Stratyfy will put Prism Data’s cash flow data and scoring to work to help lenders make better decisions when traditional credit data does not provide enough information.
“Solely depending on traditional credit data can paint an incomplete financial picture of loan applicants, which results in lenders missing out on good, profitable customers,” Stratyfy Co-Founder and CEO Laura Kornhauser explained. “By combining our proprietary AI/ML technology with Prism Data’s CashScore, we can harness cash flow data to help lenders accurately and transparently identify credit-worthy customers who may have been overlooked otherwise.”
Prism Data’s CashScore solution analyzes thousands of financial data points that are often absent from traditional credit reporting. These factors include income, assets, expenses, volatility, and the ability to repay. CashScore simplifies complex cash flow underwriting to a three-digit score and can be used by lenders to approve or decline credit applications or as part of a process that includes traditional credit models and scoring.
“Prism’s CashScore enables credit decisions that are more accurate and more inclusive – allowing lenders to say ‘yes’ to up to 30% more customers without taking on additional risk,” Prism Data President Erin Allard said. “Paired with Stratyfy’s cutting-edge decisioning technology, we’re confident lenders will be better positioned to advance financial inclusion and boost profits at the same time.”
Founded in 2016, New York-based Prism Data launched its CashScore FirstDetect solution earlier this year. FirstDetect predicts the likelihood that a customer will default on a loan. The technology uses a variety of financial details as well as trend and pattern analysis to obtain a clear overview of the customer’s spending, earning, and saving behavior. FirstDetect is especially helpful in dealing with “first-party fraud” in which a customer applies for a loan in their own name, but does so with no intention of paying the loan back.
Headquartered in New York and founded in 2017, Stratyfy made its Finovate debut at FinovateSpring 2018. The company returned to the Finovate stage for FinovateFall 2022, winning Best of Show for a demo of its Unbias solution. Unbias enables financial institutions and fintechs to “uncover, understand, and undo” bias in complex financial decision-making such as underwriting. The technology, delivered via API, is part of Stratyfy’s suite of machine learning tools to help institutions minimize bias, support inclusion, and enhance risk-adjusted returns.