Experian’s Latest Tool Enhances Financial Inclusion with Open Banking Insights

Experian® has unveiled Cashflow Attributes™, a revolutionary solution designed to broaden access to fair and affordable credit, especially for consumers with thin credit files or no credit history. With an extensive array of over 900 income, cash flow, and affordability attributes, Experian’s cash flow insights are now accessible, enabling lenders to seamlessly integrate banking data into their decision-making processes.

Traditionally, a consumer’s credit report serves as the primary tool for assessing lending risk. However, approximately 106 million consumers in the U.S. face challenges in securing credit at standard rates due to factors such as being credit invisible, having no conventional credit scores, or possessing subprime credit scores. By incorporating cash flow insights alongside traditional credit report data, lenders can gain a more comprehensive understanding of a consumer’s financial well-being and creditworthiness, thereby expanding opportunities for both lenders and consumers.

Key Points:

  1. Financial Inclusion: Cashflow Attributes leverages checking and savings account data to provide a holistic view of an individual’s financial profile, addressing the needs of the 42% of adults lacking conventional credit scores that typically grant access to credit at standard rates.
  2. Enhanced Predictive Accuracy: Combining cash flow insights with traditional credit information from Experian and expanded Fair Credit Reporting Act data can enhance predictive accuracy by up to 20%, enabling lenders to drive revenue growth while managing risk effectively.
  3. Consumer Willingness: Experian’s research indicates that 71% of consumers are willing to share their banking information if it increases their chances of credit approval, underscoring the potential for utilizing banking data to improve credit access.

Scott Brown, Group President of Experian Financial and Marketing Services, emphasized the company’s commitment to fostering financial inclusion and equitable access to credit. He highlighted Cashflow Attributes as a significant advancement that can seamlessly integrate into lending decisions, leveraging banking information to unlock new opportunities for consumers and businesses alike.

How Cashflow Attributes Works:

  • Lenders provide Experian with depersonalized transaction information from existing customers or consumer-permissioned account data from other banks.
  • Experian analyzes and categorizes the information using its proprietary model before delivering the transaction categories and predictive attributes back to the lender within seconds.
  • Additionally, lenders can leverage Experian’s proprietary categorization model independently to gain deeper insights and enhance personalized experiences for consumers.

About Experian:

Experian is a global information services company empowering consumers and clients to manage their data confidently across various life events. With operations in 32 countries and a focus on innovation, Experian helps individuals take financial control, enables businesses to make informed decisions, assists lenders in responsible lending practices, and supports organizations in preventing identity fraud and crime.

For more information, visit www.experianplc.com or explore the latest news and insights on the global content hub.

Experian and its trademarks are owned by Experian and its affiliates, while other product and company names mentioned herein may be property of their respective owners.

(Note: *Provided lenders have use rights to utilize such banking data in decision-making)

Source Link

Newsletter Updates

Enter your email address below and subscribe to our newsletter