Following this announcement, by combining Plaid Layer, an instant financial onboarding platform, with Consumer Report, the cash flow data solution powered by the company’s consumer reporting agency, the partnership aims to make it easier for lenders to evaluate cash flow information, alongside traditional credit data.
In addition, the combination will enable borrowers to instantly link their financial accounts, as well as provide their income, expenses, and bank account balances directly to lenders right at the beginning of the application process. For lenders, this will provide them with access to a more holistic picture of their applicants’ financial situation in order to make more confident lending decisions.
MoneyLion represents the first customer taking advantage of the new solution of Plaid, making instant onboarding and cash flow underwriting available across its users and partners. Its platform was developed in order to simultaneously drive customer acquisition for product providers and monetisation opportunities for distribution channel collaborators. By integrating Plaid’s new service, MoneyLion will have the possibility to integrate real-time cash flow data directly into the loan application and pre-qualification journey. In addition, users will be enabled to link and permission their bank accounts, as well as to get pre-qualified for loans in just a few steps.
Lenders will benefit from accessing cash flow insights in MoneyLion’s hosted decisioning platform, as well as through their existing pre-qualification integrations. By leveraging Consumer Report, lenders will also be enabled to expand their reach to underserved borrowers, such as those with thin credit files or no credit history who have been overlooked by traditional credit reports.
The partnership is expected to optimise the overall borrowing experience and ensure that more people can access the financial products that best meet their needs by expanding financial access for underserved users. Furthermore, the new solution aims to address one of the concerns that lenders have while considering cash flow underwriting. This will enable them to provide a secure loan application experience while getting the data and insights they need to make informed decisions.
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