All posts by Ashley Knight

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

In some instances, the ways in which lenders make decisions is not unlike looking through a keyhole. From this vantage point, there is some information, but it isn’t the whole picture. Lenders are often making decisions on a subset of information about a consumer. And for millions of people in America, including those who are thin-file or credit-invisible, the amount of information available is limited.   Our goal is to help our clients gain a more representative understanding of consumers to better inform their decisions and ultimately better serve consumers.   Credit reports and traditional credit scores will continue to be an extraordinarily important part of the process, but we’re continually asking ourselves: how we can leverage our unique vantage point to help our clients obtain a more complete picture to create new opportunities for consumers?   One proven way we can achieve this is by helping financial services companies more easily leverage consumers’ banking and transaction information through open banking. This information can advance financial inclusion by providing a more comprehensive and accurate view of a consumer while giving consumers greater control of their data. And our research shows most consumers are onboard, with 71% stating they’re willing to provide this information if it increases their likelihood of qualifying for credit.1 Introducing Cashflow Score  Today, we’ve unlocked an exciting milestone in making the use of this information more accessible with the launch of Cashflow Score. This is the latest in a short list of products that can be used to make lending decisions, leveraging consumer-permissioned transaction information to more accurately assess risk, particularly for credit invisible or un-scorable consumers who have a bank account.  The score provides lenders with a clearer view of an applicant’s financial behavior, including income, expenses, cash reserves, and more, to enhance risk assessments with up to 25% lift in predictive performance.2 Our solution can easily integrate into lenders’ existing workflows in conjunction with traditional credit scores for credit decisions.   This means lenders can now leverage Cashflow Score in first and second chance credit decisions to assess applicants with limited or nonexistent credit histories, using only bank account data.    The future of financial inclusion  Open banking and transaction data can help create a future where we can help bring financial power to all.    As the only financial services company offering both traditional scores and cashflow-based scoring solutions developed in-house, we are uniquely positioned to connect credit outcomes with transaction data. And we’re just scratching the surface with solutions like Cashflow Score.   As we continue to innovate and embrace the possibilities of open banking, I am optimistic about what lies ahead and how we can expand the keyhole even further.   Together, we can create a more inclusive financial system where everyone has the opportunity to thrive.  [1]  Experian commissioned Atomik Research to conduct an online survey of 2,005 adults throughout the United States. The makeup of the sample is representative of the U.S. population based on national census data regarding demographic variables such as gender, age and geographical regions. The margin of error for the overall sample is +/- 2 percentage points with a confidence level of 95 percent. Fieldwork took place between March 17 and March 21, 2024. [2]  Based on Experian analysis when Cashflow Score is compared to conventional credit scores, tailored to targeted risk tiers. Predictability based on KS. Related Posts

We’ve reached a meaningful milestone with the launch of Experian Cashflow Attributes™. Now, lenders can tap into over 900 income, cashflow and affordability attributes from Experian across the customer lifecycle – which can provide a more accurate view of consumers’ financial health.