Experian Launches New Tool, Expanding Access to Fair Credit

Experian launches Cashflow Attributes, its new open banking solution for fair and affordable access to credit, driven by more informed lending decisions

Business services company, credit score provider and FinTech Magazine Top 10 consulting firm, Experian, has launched Cashflow Attributes, its new open banking solution to help expand fair and affordable access to credit – particularly for thin-file and/or credit-invisible consumers.

Powered by 900 income, cashflow and affordability attributes, Cashflow Attributes offers cashflow insights and enables lenders to seamlessly integrate banking data into their decision-making. 

Experian: Solutions to boost financial inclusion

While consumer credit reports are the most effective means to assess lending risk – in the US alone, almost 106 million consumers are unable to secure credit at mainstream rates because they are credit invisible or unscoreable by conventional means.

With Cashflow Attributes, Experian is able to add an additional layer to traditional credit report data, creating a more detailed view of a consumer’s financial health and creditworthiness for lenders. 

The ultimate aim, of course, is to provide more opportunities for consumers, which is a core pillar of Experian's operating model as a credit bureau. 

Below, Experian outlines why its new Cashflow Attributes solution is so important: 

  • Financial inclusion: 42% of adults lack a conventional credit score in a range that typically grants access to credit at standard rates. Cashflow Attributes, which leverages checking and savings account information, offers a more comprehensive view of an individual’s financial profile. Using traditional credit data with lender-obtained cashflow information may unlock opportunities for consumers who may not have qualified if a lender was using traditional credit data on its own.
  • Enhanced predictive accuracy: While cashflow insights are predictive on their own, when viewed with traditional credit information from Experian and expanded Fair Credit Reporting Act data, Cashflow Attributes can boost predictive accuracy by up to 20% allowing lenders to drive revenue growth while mitigating risk.
  • Consumer willingness: Experian's research shows that 71% of consumers are willing to share their banking information if it increases their chances of credit approval.

The importance of Experian’s new solution is clear, but how exactly does it work? 

How Cashflow Attributes works

Scott Brown, Experian

Lenders that request Cashflow Attributes must first provide Experian with depersonalised transaction information from their existing customers or with consumer-permissioned account information from other banks.

Then, Experian analyses and categorises the information using its proprietary categorisation model. This allows Experian to deliver transaction categories and predictive attributes back to the lender in a matter of seconds. 

Scott Brown, Group President of Experian Financial and Marketing Services, says: “Supporting financial inclusion and creating an equitable path to credit is ingrained in our DNA.

“We believe banking information holds untapped potential and that our new Cashflow Attributes represent an exciting step forward that can easily be integrated into lending decisions. 

“As we look ahead, we will continue to leverage our core credit data, new data elements and our analytics expertise to unlock new opportunities for both consumers and businesses.”


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