Every day, people make responsible financial choices, including paying rent, managing bills and saving for the future. These choices are reflected in a consumer’s bank account, but in many cases, this information isn’t factored into lending decisions. If it were, these insights could help millions of consumers with limited credit histories, including those who are just starting out, new to the country or rebuilding after a setback, gain access to fair and affordable credit.
We have long recognized this gap and it’s our mission at Experian to help close it. This is why we’ve championed the use of expanded data sets, including cashflow insights, to help bring more consumers into the mainstream credit ecosystem.
As part of this, today we’ve reached an exciting milestone as we announce a new collaboration and integration with Plaid, a leading financial data network that’s used by one in two U.S. bank account holders. Together, we’re helping lenders leverage cashflow insights with speed and simplicity to assess risk more effectively and deliver better outcomes for consumers.
Through our new integration, we’re helping our clients accelerate the adoption of cashflow insights alongside our trusted, core credit data to drive faster decisions, stronger portfolios, and new financial opportunities for consumers.
Why this matters
Put yourself in the shoes of a young adult who just graduated from college and landed their first job. They’re responsible with their money, pay rent and utilities on time, and have started saving. But when they apply for their first credit card, they’re denied — not because they’re a risk, but because they don’t have enough credit history to show they’re not.
With this new integration, this consumer’s story, and countless others like it, can have a different ending.
When this consumer consents to share their bank account data during an application for a credit card, personal loan, auto loan, or other credit product, Plaid generates a Consumer Report on their behalf and securely delivers that information to Experian via a seamless integration. We analyze the information and return a Cashflow Score or predictive Cashflow Attributes, which can provide up to a 25% lift in predictive performance, to the lender in real time.
This information gives our clients a clearer, more accurate view of the applicant’s financial behavior, ultimately giving millions of consumers who are excluded from the mainstream financial ecosystem a fair shot at the credit they deserve.
Looking ahead
This collaboration is about giving consumers more control over their financial futures. It’s about helping lenders make smarter decisions. And it’s about building a system that works better for everyone.
By working with Plaid, we’re not just improving credit decisions. We’re expanding what’s possible for millions of people.
Learn more about our work with Plaid.