Experian introduces Cashflow Attributes to expand access to credit

In essence, this new solution was designed to broaden access to credit for thin-file and credit-invisible consumers. The platform offers insights into income, cash flow, and affordability through over 900 attributes, and these insights aim to allow lenders to integrate banking data into their decision-making processes. 

According to Experian, approximately 106 million consumers in the United States face challenges in securing credit at mainstream rates due to factors such as being credit invisible or having subprime credit scores. By combining traditional credit report data with cash flow insights, lenders can gain a more comprehensive view of a consumer's financial health and creditworthiness.

Key points highlighted by Experian include: 

• Enhanced predictive accuracy: Experian claims that Cashflow Attributes, when combined with traditional credit information and expanded Fair Credit Reporting Act data, can increase predictive accuracy by up to 20%, enabling lenders to grow revenue while managing risk. 
• Financial inclusion: Cashflow Attributes leverages checking and savings account information to provide a more detailed financial profile, potentially opening up credit opportunities for consumers who may not qualify based on traditional credit data alone. 
• Consumer willingness: Experian's research suggests that a majority of consumers are willing to share their banking information if it improves their chances of credit approval.

How does it all work?

The process of Cashflow Attributes involves lenders providing Experian with depersonalised transaction information, which Experian then analyses and categorises using its proprietary model. The categorised information is then returned to the lender to aid in decision-making. 

Experian emphasises its commitment to supporting financial inclusion and creating equitable access to credit. The company sees Cashflow Attributes as a step forward in leveraging banking information to unlock opportunities for both consumers and businesses. Additionally, Experian notes that its proprietary categorisation model can be used independently by lenders to gain deeper insights and enhance financial management tools.

Some background on Experian 

Experian is a global information services company focused on empowering consumers and clients to manage their data with confidence. According to the official press release, the company operates in 32 countries with a workforce of 22,000 people. 

The company's services include facilitating financial control, aiding businesses in making informed decisions, responsible lending, and preventing identity fraud and crime.