Whether it’s pursuing homeownership, purchasing a family car, renting an apartment, or simply trying to secure everyday financial products, recent industry conversations have put a spotlight on the indispensable role data plays in driving smart decisions and improving access to credit.
In my role, I have the unique opportunity to demonstrate how data, including cash flow insights, can drive meaningful progress towards financial inclusion. At Experian, we believe these insights represent the next great evolution in credit.
Cash flow data is transforming how we understand consumer behavior, assess risk and open doors for consumers who have been historically left out of the mainstream financial ecosystem.
While cash flow insights are becoming central to the future of credit, it’s critical we lean not just on the data itself, but on the infrastructure, trust and stewardship that support it.
Our Commitment to Open Banking and Cash Flow Innovation
Experian has been leading open banking solutions internationally for over a decade and we’ve been building cash flow-based solutions in the U.S. for more than eight years. We are the only credit reporting agency offering both traditional credit scores and cash flow-based scoring solutions developed in-house. This unmatched vantage point allows us to uniquely understand how cash flow analytics, when leveraged with traditional credit data, can reveal a more complete picture of consumer financial health and help lenders distinguish between risk and resilience with greater precision.
Our cash flow-based solutions are designed to power smarter, more inclusive credit decisions across a variety of credit products and industries, including credit cards, personal loans, auto, housing and more.
For example, our Cashflow Score and Cashflow Attributes deliver up to a 25% lift in predictive performance when compared to conventional credit scores, while improving financial access for consumers historically left behind. In addition, our research shows that leveraging cash flow insights in the mortgage space results in a 35% increase in model accuracy and risk differentiation, underscoring its potential to transform credit evaluation in the housing industry.
These solutions are exclusive to Experian and powered by our Categorization Engine – a dynamic, machine learning model that processes approximately 30 million transactions every day with remarkable accuracy. And because the system learns continuously, it grows more intelligent and more precise with every interaction.
Infrastructure, Trust, and Scale
Our ability to help lenders use these insights at scale is grounded in our unmatched expertise and infrastructure. We’ve built one of the most sophisticated and secure data ecosystems in the world, underpinned by decades of responsible data stewardship. That foundation allows us to deliver new cash flow innovations to fintechs, credit unions, mortgage lenders and resellers, as well as large banks with confidence and integrity.
Our data science teams are among the most sophisticated in the industry, with deep expertise in developing predictive models and scores that power billions of lending decisions globally.
We know what it takes to translate data into meaningful, actionable insights that help lenders of all sizes make confident, fair and inclusive decisions, including tailoring their offerings and delivering the right products and services to consumers at the right time.
Leading the Industry Forward
Cash flow insights are a catalyst for a complete, inclusive view of financial health. And realizing that promise requires the right foundation: trusted data, powerful infrastructure, rigorous analytics, and the scale to make it work.
We have long served as a trusted backbone of the credit ecosystem, operating with governance, transparency, and accountability at our core. That same commitment extends to our work in cash flow analytics today.
As the industry embraces this new frontier, we are uniquely positioned to lead and help our clients turn these insights into action, enabling them to deepen customer relationships, tailor offerings to evolving needs, and ultimately empower more consumers to achieve meaningful financial milestones.
To learn more about Experian’s suite of cash flow-based solutions, please visit: https://www.experian.com/business/products/cashflow-score
