Lenders and fintechs using Equifax credit data can now draw on consumer-permissioned bank transaction insights from Mastercard Open Finance. US-based Equifax has added three Mastercard Open Finance products to its Open Banking solutions, giving customers more choice in the Open Finance provider they use alongside the Equifax consumer credit file.
Three Mastercard Open Finance tools for underwriting
The new options cover different stages of credit assessment. Cashflow Analytics analyses up to 24 months of credits, debits, and balances to generate cash flow attributes for underwriting. Payment Risk Insights provides a score designed to help lenders predict repayment risk and identify early signs of repayment stress. Transaction Report offers at least six months of cleansed and categorised bank transaction data that lenders can use in their own decisioning models. Mastercard Open Finance solutions are provided by Finicity, a Mastercard company.
Equifax Open Banking Solutions use consumer-permissioned cash flow data to bring bank transaction data, attributes, or scores into lending and portfolio management strategies. Lenders can choose between analysing detailed attributes and relying on ready-made scores, depending on their approach. The data is designed to fit into existing underwriting systems, with Equifax aiming to reduce integration work and shorten deployment times.
Expanding credit access for thin-file consumers
Equifax stated that 76.1 million consumers in the US are thin-file or credit invisible, meaning they have limited or no traditional credit history. Cash flow insights allow these individuals to build a fuller financial profile, which can help lenders extend credit more responsibly and speed up approvals. Requirements also vary by product, as personal loans, credit cards, and commercial credit lines each carry different repayment structures, risk profiles, and decisioning needs.
Jacob Osborne, Senior Vice President and General Manager, Fintech and Payments at Equifax, said a single cash flow partner does not suit every financial institution, and that Equifax aims to let customers choose their Open Finance provider while combining the data with Equifax credit and alternative data. Bart Willaert, Executive Vice President, Open Finance, Americas at Mastercard, said consumer-permissioned cash flow insights are becoming more important as lenders seek a fuller view of financial health, and that the collaboration will support faster credit decisions.
