Experian and Plaid combine forces to boost credit access by providing immediate cash flow data insights
In a groundbreaking move, credit reporting giant Experian and financial technology company Plaid have joined forces to revolutionise the credit industry. This partnership, aimed at making credit more inclusive and accessible, leverages Open Banking by combining Experian’s extensive credit data with Plaid’s real-time, consumer-permissioned cashflow data.
The collaboration uses Plaid’s infrastructure to securely and transparently access consumers’ bank account data—with their permission—to generate real-time cashflow insights that boost credit risk models, increasing approval rates and broadening financial access for underserved consumers who may lack traditional credit history.
One of the key benefits of this partnership is the introduction of Experian’s Cashflow Score and Cashflow Attributes. These innovative tools analyze over 970 cashflow data points across many categories to improve lender confidence and increase approval rates by up to 30%, with predictive model performance lifted by up to 25%. This means more consumers, including those new to credit or with thin credit files, can be accurately assessed based on their actual financial behavior like paying bills and saving money, rather than solely on traditional credit history.
Trust, transparency, and consumer control over data are at the heart of this collaboration, aligning with Experian’s philosophy seen in its Experian Boost service. Consumers explicitly grant permission for their data sharing, ensuring responsible use of financial information to drive financial inclusion and responsible lending.
The partnership also offers debt consolidation loans as a new service. This service, available to applicants particularly those new to credit, recent immigrants, or individuals rebuilding their financial histories, can potentially benefit individuals looking to improve their credit scores by consolidating their debt.
This collaboration is part of the Open Banking trend, aiming to facilitate smarter, faster, and fairer lending moves. By integrating dynamic, real-time financial data with traditional credit information, the partnership helps lenders better identify creditworthy consumers outside conventional metrics, ultimately expanding credit access for millions.
In conclusion, the partnership between Experian and Plaid is a significant step towards making credit more inclusive and accessible. By recognising and rewarding responsible financial behavior outside of traditional credit products, this partnership is set to redefine how financial potential is evaluated, prioritising consumer-permissioned data in modern finance.
- The collaboration between Experian and Plaid uses Plaid's infrastructure to securely access consumers' bank account data with their permission, generating real-time cashflow insights that boost credit risk models.
- One of the key benefits of this partnership is the introduction of Experian’s Cashflow Score and Cashflow Attributes, which analyze cashflow data points to improve lender confidence and increase approval rates by up to 30%.
- The partnership also offers debt consolidation loans as a new service, particularly for those new to credit, recent immigrants, or individuals rebuilding their financial histories, potentially benefiting individuals looking to improve their credit scores by consolidating their debt.
- This collaboration is part of the Open Banking trend and aims to facilitate smarter, faster, and fairer lending moves by integrating dynamic, real-time financial data with traditional credit information, ultimately expanding credit access for millions.
