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Experian and Plaid team up to boost credit access by providing instant cash flow information in real-time.

Fintech company Experian joins forces with Plaid, signaling a significant step in their goal to broaden credit availability and foster inclusivity via Open Banking technology.

Experian and Plaid team up to boost credit availability with immediate cash flow data analysis
Experian and Plaid team up to boost credit availability with immediate cash flow data analysis

Experian and Plaid team up to boost credit access by providing instant cash flow information in real-time.

In a significant move, credit reporting giant Experian has collaborated with Plaid, a leading financial data network, to make credit more inclusive and accessible for individuals with limited or no traditional credit history.

This partnership transforms how credit risk is assessed, moving beyond traditional credit reports to include real-time cashflow data in credit decisioning. By combining Experian’s advanced analytics with Plaid’s consumer-permissioned, real-time cashflow data from bank accounts, lenders can now evaluate up to 970+ cashflow attributes across 133+ categories.

This innovative approach helps serve consumers who pay bills and manage money responsibly but lack sufficient traditional credit data, such as those starting credit histories or without credit cards. The collaboration allows lenders to use cashflow insights derived from consumer-permissioned bank data, resulting in higher approval rates and fairer credit access.

The streamlined technology uses Plaid’s trusted API connectivity to securely access consumer financial data during application, with full consumer permission and control. This integration facilitates smarter, more inclusive lending decisions across various credit products, including credit cards, personal loans, auto loans, and mortgages.

Plaid's platform is connected to one in two U.S. bank accounts, providing a vast pool of data for analysis. This collaboration is expected to have a significant impact on the evaluation of financial potential, redefining how financial institutions view creditworthiness.

Moreover, the partnership offers debt consolidation loans as a new development, further expanding the range of financial services available to a wider audience. The strategic moves by Experian aim to make lending more accessible and inclusive, aligning with the trend of financial services companies collaborating to offer innovative products and services.

In conclusion, the collaboration between Experian and Plaid is a significant step towards recognizing and rewarding responsible financial behavior outside of traditional credit products. By using innovative, real-time cashflow insights to supplement or stand in place of traditional credit history, this partnership expands credit access for millions otherwise excluded from mainstream financial services, promoting financial inclusivity.

[1] Source: Experian Press Release, 2021 [2] Source: Plaid's Data Privacy Policy [3] Source: Experian's Inclusive Lending Report, 2021 [4] Source: Plaid's API documentation

  1. This partnership between Experian and Plaid is leveraging data from bank accounts to provide insights that promote more inclusive and accessible finance for individuals with limited traditional credit history.
  2. By combining Plaid's consumer-permissioned, real-time cashflow data with Experian's advanced analytics, the collaboration enables lenders to evaluate a broad spectrum of cashflow attributes, thereby improving credit decision-making.
  3. The integration of Plaid's technology allows financial institutions to acquire smarter, more inclusive lending insights across various financial products, such as those for credit cards, personal loans, auto loans, and mortgages.
  4. The collaboration between Experian and Plaid offers new financial services, including debt consolidation loans, to a broader audience, aligning with the trend of financial companies working together to innovate and expand service offerings.

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