Block opens up its Cash App Score to other lenders

Block is making a major move that could expand credit access for your customers. They are opening up 'Cash App Score' to outside lenders for the first time. This is the internal risk assessment tool Block uses to power its own lending products. Instead of just looking at a standard FICO score, this tool looks at real-time data like transaction history and account balances. For retailers, this is big news because it means lenders can now see a 'hidden' layer of creditworthiness in customers who might have thin credit files or lower traditional scores. By partnering with Nova Credit to distribute this data, Block is helping other financial institutions say 'yes' to more borrowers. If you offer financing at the point of sale, your lenders may soon have a more accurate way to approve younger or underbanked shoppers who use Cash App regularly. This real-time signal is often more predictive than static reports from the big three credit bureaus. As more lenders integrate this data, expect to see higher approval rates and more personalized financing offers for the millions of people who live their financial lives through apps rather than traditional banks.

Source: Finextra — Lending

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