Plaid's Newest Cash Flow Underwriting

Today, Plaid has introduced a new product called Consumer Report, which provides comprehensive cash flow underwriting tools for lenders. Key features include:

• Insights from up to 24 months of consumer-permissioned bank account data

• Income Insights to verify a consumer's ability to pay

• Partnership with Prism Data to provide a unique cash flow risk score called CashScore

This product is designed to make cash flow underwriting more accessible and effective for mainstream lenders.

MoneyLion has adopted Plaid's new solution, combining the Layer instant financial onboarding platform with the Consumer Report cash flow data solution. This integration allows consumers to:

• Link their bank accounts easily

• Get pre-qualified for loans based on cash flow data

• Receive more tailored and competitive credit options

The YouLend and Plaid partnership has demonstrated a 90% approval rate for SMB financing in Europe.

Last year, Plaid has launched a new hosted Link solution that allows lenders to access real-time cash flow data during the underwriting process. This fully hosted, on-demand experience enables lenders to:

• Access consumer-permissioned cash flow data

• Determine an applicant's qualification for loans or credit products based on their cash flow

• Embed Plaid Link into their user journey with minimal engineering work

This solution is particularly beneficial for lenders managing both digital and online presence, as support agents can use it to help customers with verification during live chats.

Innovations in cash flow underwriting are transforming alternative business lending, making it more precise, efficient, and accessible for everyone.

Our Opinion

Using cash flow data will significantly transform the industry. The key question is whether this solution will simplify the application process. Linking bank accounts often deters borrowers, so the 17.5% increase in conversion rates is promising.

This collaboration reflects a growing trend in the alternative lending industry to leverage technology to improve efficiency and expand market reach.

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