Experian launches Cashflow Data Bureau

Experian is launching a new bureau specifically designed to track consumer cashflow data. For retailers and service providers, this is a significant shift in how your customers get approved for financing. Traditionally, lenders relied almost exclusively on credit scores. This new system allows lenders to see real-time income and spending patterns via bank transaction data. This technology will likely lead to higher approval rates for your customers who have 'thin' credit files or lower scores but steady income. It helps lenders verify that a customer can actually afford the monthly payments for a big-ticket purchase right now, rather than just looking at their past debt history. For your business, this means fewer declines at the point of sale and a more accurate picture of a customer's purchasing power. Expect your financing partners to begin integrating this data to refine their instant-decisioning tools. This move signals a broader industry shift toward 'open banking' where cash-on-hand is becoming as important as the FICO score.

Source: Finextra — Lending

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