Experian expands access to credit with new cashflow tool

Ellie Duncan
14 May 2024

US-based Experian has launched a new solution that uses Open Banking insights to expand access to credit, in particular for “thin file” and “credit invisible” consumers.

The new tool, ‘Cashflow Attributes’ is based on more than 900 income, cashflow and affordability attributes, and is available to lenders now.

The banking data can be used by lenders alongside traditional credit report data to provide a more detailed view of a consumer’s financial health and creditworthiness.

According to Experian, nearly 106 million US 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.

However, research by Experian has found that 71% of consumers are willing to share their banking information if their chances of credit approval are improved.

When lenders request ‘Cashflow Attributes’, they provide Experian with “depersonalized” transaction information from their existing customers, or with consumer-permissioned account information from other banks.

Then, Experian analyses and categorises the information, before delivering the transaction categories and predictive attributes back to the lender.

Scott Brown, group president of Experian Financial and Marketing Services, said: “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.”

Earlier this year, Experian revealed it will include “pay-in-four” buy now, pay later loan information from Apple ‘Pay Later’ on consumers’ credit reports to encourage responsible lending.