Experian has announced the launch of its combined credit, cash flow, and alternative data score, the Experian Credit + Cashflow Score.
Following this announcement, the model was developed in order to combine Experian’s secure and efficient credit, alternative, and trended data, as well as consumer-permissioned banking information into a singular score.
Through the process of leveraging Experian’s data with information about how a consumer is managing their finances through Open Banking, Experian will focus on optimising the manner in which its clients rethink what’s possible, as well as driving improved consumer outcomes, expanding access to credit, and ultimately bringing financial benefits to all its clients.
The Experian Credit + Cashflow Score development and its benefits for clients and users
According to the official press release, the Experian Credit + Cashflow Score represents an important step in Experian’s mission to optimise the process of increasing fair access to credit. At the same time, the model integrates Experian’s comprehensive and secure data assets, including the consumer-permissioned bank account data (regarding income, balances, card payments, bank fees, and loan transactions), credit data, and detailed credit account information on several US consumers, Clarity Services data, the nation’s alternative credit bureau (this aims to expand visibility into multiple consumers who use nontraditional financial services and may otherwise lack traditional credit histories), as well as trended data (which is expected to provide a 24-month view of how consumers manage credit over time).
Furthermore, the Experian Credit + Cashflow Score builds on Experian’s suite of expanded credit solutions, including Experian’s Cashflow Score, Cashflow Attributes, and the company’s interactive cash flow insights dashboards. In addition, the score ranges from 300 to 850 and will be available to make decisions across the entire financial lifecycle. Institutions and lenders will be given the possibility to gain early access to Experian’s new score for testing through custom analytics, archives, or through the use of the Experian Ascend Platform.
