Global analytics software company FICO has announced its partnership with Plaid in order to launch Cash Flow UltraFICO Score.
Following this announcement, the solution is set to combine the proven reliability of the FICO Score with real-time cash-flow data from Plaid in order to provide lenders with a single and secure credit score that delivers improved consumer risk assessment without operational complexity.
The partnership will deliver a breakthrough scoring solution that aims to map cash flow insights into the proven FICO Score scale. In addition, it will also provide lenders with a more efficient integration, optimising the process of transforming banking insights into scalable credit decisions. This solution will be distributed through the use of Plaid’s Consumer Reporting Agency, Plaid Check.
Making more inclusive credit decisions through a simple and scalable solution
According to the official press release, the optimised UltraFICO Score solution is expected to leverage cash flow data that was accessed through Plaid's Open Finance network of consumer-permissioned data. At the same time, through the process of bringing together FICO’s trusted credit score intelligence with Plaid’s cash flow data, the companies will continue to focus on developing the foundation for more comprehensive lending decisions. As high-quality cash flow data is becoming essential for lenders who want a more comprehensive view of a consumer’s financial picture, the partnership is set to optimise the manner in which lenders make more secure and inclusive credit decisions through a simple solution.
Furthermore, the new score is set to offer lenders three additional advantages in addition to improved credit risk performance. This will include the alignment to the flagship FICO Score to enable confident cash flow adoption without introducing lengthy testing or added risk, streamlined implementation for lenders (which aims to minimise operational complexity and accelerate onboarding), as well as universal compatibility, aiming to provide lenders with the needed flexibility to use a cash flow model with the traditional FICO Score irrespective of the channel they use for the FICO Score.
For more information about Plaid, please check out their detailed profile in our dedicated, industry-specific Company Database.
