Data and technology company Experian has launched Cashflow Score, aiming to facilitate informed credit decisions.
Cashflow Score integrates seamlessly into lenders’ existing workflows, offering a comprehensive view of an applicant’s financial behaviour. This includes detailed insights into income, expenses, and cash reserves.
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The solution is beneficial for first and second-chance credit decisions, aiding individuals with limited or no credit history by utilising bank account data to enhance financial access.
Experian’s Cashflow Score utilises consumer-permissioned transaction data from its clients.
The company then categorises this data and calculates attributes to determine the score, which ranges from 300 to 850, and is applicable to various credit products including credit cards, personal loans, and auto loans.
The score is then delivered back to the lender for decision-making.
Cashflow Score complements other tools such as Cashflow Attributes and the newly launched Cashflow Dashboards, which offer immediate insights into cash flow and traditional credit data.
Experian financial and marketing services group president Scott Brown said: “We believe in a future where the power of credit data can be augmented with cashflow insights to enhance decisions and ultimately bring more consumers — including those who are traditionally underserved — into the financial ecosystem.
“We’re committed to leveraging our decades of data and analytics experience to deliver innovative and easy-to-use open-banking solutions to the industry while creating new opportunities for consumers.”
In June 2024, Virgin Money formed a partnership with Experian to improve its digital customer experience using cloud-based technology.
