New Experian Tool Empowers Financial Inclusion Through Open Banking Insights
09 Mayo 2024 - 5:00AM
Business Wire
Experian’s Cashflow Attributes may improve
access to credit for underserved consumers and help enable more
informed lending decisions
Experian® today announced the launch of Cashflow Attributes™, a
groundbreaking solution to help expand fair and affordable access
to credit, particularly for thin-file and credit invisible
consumers. With over 900 income, cashflow and affordability
attributes, Experian’s cashflow insights are available now and
allow lenders to seamlessly integrate banking data into their
decision-making*.
A consumer’s credit report is the most effective means to assess
lending risk; however, nearly 106 million U.S. consumers are unable
to secure credit at mainstream rates either because they are credit
invisible, unscoreable by conventional credit scores, or have a
subprime or below credit score.1 Layering traditional credit report
data with cashflow insights helps create a more detailed view of a
consumer’s financial health and creditworthiness for lenders and
can provide more opportunities for consumers.
Why it’s important:
- Financial inclusion: 42% of adults lack a conventional
credit score in a range that typically grants access to credit at
standard rates2. 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%3 allowing lenders to drive revenue growth while mitigating
risk.
- Consumer willingness: Experian's research shows 71% of
consumers are willing to share their banking information if it
increases their chances of credit approval.4
“Supporting financial inclusion and creating an equitable path
to credit is ingrained in our DNA,” said Scott Brown, group
president Experian Financial and Marketing Services. “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.”
How Cashflow Attributes works:
- Lenders requesting Cashflow Attributes provide Experian with
depersonalized transaction information from their existing
customers or with consumer-permissioned account information from
other banks.
- Next, Experian, as a service provider to its lender clients,
analyzes and categorizes the information using its proprietary
categorization model.
- And in seconds, Experian delivers the transaction categories
and predictive attributes back to the lender.
Experian’s proprietary categorization model can also be
leveraged independently by lenders to gain deeper insights, drive
more personalized experiences, and help improve financial
management tools.
About Experian
Experian is the world’s leading global information services
company. During life’s big moments – from buying a home or a car,
to sending a child to college, to growing a business by connecting
with new customers – we empower consumers and our clients to manage
their data with confidence. We help individuals to take financial
control and access financial services, businesses to make smarter
decisions and thrive, lenders to lend more responsibly, and
organisations to prevent identity fraud and crime.
We have 22,000 people operating across 32 countries and every
day we are investing in new technologies, talented people, and
innovation to help all our clients maximise every opportunity. With
corporate headquarters in Dublin, Ireland, we are listed on the
London Stock Exchange (EXPN) and are a constituent of the FTSE 100
Index.
Learn more at www.experianplc.com or visit our global content
hub at our global news blog for the latest news and insights from
the Group.
Experian and the Experian trademarks used herein are trademarks
or registered trademarks of Experian and its affiliates. Other
product and company names mentioned herein are the property.
* Provided lenders have use rights to utilize such banking data
in decision-making
1
https://www.experianplc.com/newsroom/press-releases/2022/experian-and-oliver-wyman-find-expanded-data-and-advanced-analytics-can-improve-access-to-credit-for-nearly-50-million-credit-invisible-and-unscoreable-americans
2
https://www.experianplc.com/newsroom/press-releases/2022/experian-and-oliver-wyman-find-expanded-data-and-advanced-analytics-can-improve-access-to-credit-for-nearly-50-million-credit-invisible-and-unscoreable-americans
3 Experian analysis based on GINI predictability. GINI
coefficient measures income or wealth inequality within a
population, with 0 indicating perfect equality and 1 indicating
perfect inequality, reflecting predictive capability.
** Cashflow insights as delivered by Experian are not considered
Experian consumer reports.
4 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240509029788/en/
Amanda Garofalo Experian Public Relations 1 714 460 3739
amanda.garofalo@experian.com
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