November2024

CashFlowUnderwriting:ReshapingtheLendingLandscape

StewartWatterson

Preparedfor:

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?2024DatosInsightsoritsaf?liates.ThisreporthasbeensponsoredbyPlaidandmadeavailableunderlicense.

November2024

CashFlowUnderwriting:ReshapingtheLendingLandscape

StewartWatterson

TableofContents

ExecutiveSummary 2

Introduction 4

Methodology 4

WhatIsCashFlowUnderwriting? 6

KeytoCashFlowUnderwriting:OpenBanking 7

WhyThisMattersNow 8

UseCasesofCashFlowData 10

ExpandedCashFlowDataUses 11

Regulator’sPerspective 12

ChallengestoWidespreadAdoption 12

IndustryAdoptionofCashFlowUnderwriting 13

Conclusion 16

AboutPlaid 17

ListofFigures

Figure1:SurveyInstitutionSize 4

Figure2:Lender’sGrowingCon?denceinAlternativeCreditData 6

Figure3:ChallengesWithTraditionalCreditData 8

Figure4:Lender’sCon?denceinTraditionalCreditData 9

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ExecutiveSummary

Thispaperexaminesthetransformativeimpactofcash?owunderwritingonlending,

particularlyinconsumerlending.Drawingonextensiveindustryresearchanddatafrom

multiplesources,includingsurveysconductedbyDatosInsightsandreportsfromleading?ntechcompanies,thisanalysisexploreshowcash?owunderwritingisreshapingcredit

decisioningprocessesandexpanding?nancialinclusion.Thepaperdelvesintothekey

driversbehindthegrowingadoptionofthisinnovativeapproachanditspotentialbene?tsforlendersandconsumers.

Byleveragingreal-timetransactiondataenabledbyopenbankingtechnologies,cash?owunderwritingoffersholisticviewsofborrowers’?nancialhealth,whichcanimproverisk

assessmentaccuracyandcreditaccessibility.Theanalysisalsoconsiderstheregulatorylandscapeandtheperspectivesofearlyadoptersintheindustry.Thesearethekey

?ndings:

?Cash?owunderwritingisgainingsigni?canttractioninthelendingindustry:88%ofU.S.consumerlendersreportincreasedcon?denceinusingalternativecreditdatacomparedtoayearago.

?Openbankingtechnologiesarecrucialenablersofcash?owunderwriting,facilitatingsecureaccesstoreal-time?nancialdataandenhancingtheaccuracyofcredit

assessments.

?Openbankingaddressescriticalchallengesintraditionalunderwritingprocesses.Itprovidesamoreholistic?nancialpictureofapplicantsbeyondtraditionalcreditdataandreducestherelianceonmanualdocumentation.

?Cash?owunderwritingcancontributetoexpandingcreditaccessforthemillionsofunderbankedconsumersbyprovidingamorecompleteandaccurateassessmentofcreditworthiness,promoting?nancialinclusion,andgrowingthemarketforlenders.

?Cash?owinsightscanrevolutionizefrauddetection.Byestablishingnormaltransactionpatterns,?nancialinstitutionscanmorequicklyidentifyandrespondtounusual

activities,protectingconsumersfrom?nancialcrimes.

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?Regulatorybodies,particularlytheConsumerFinancialProtectionBureau(CFPB),haveexpressedsupportforcash?owunderwriting,recognizingitspotentialtopromote

?nancialinclusionandimprovecreditdecisioningaccuracy.

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Introduction

Cash?owunderwritingisrevolutionizingthelendinglandscape,offeringamoreholisticapproachtoassessingcreditworthiness.Thiswhitepaperexplorestheintricaciesofcash?owunderwriting,itssigni?canceintoday’s?nancialecosystem,anditspotentialto

reshapecreditdecisioning.

Thispaperdrawsondecadesofindustryexperienceandrecentdata,delvingintothekeyaspectsofthisapproach,fromitsfoundationalrelianceonopenbankingtoitsdiverseusecasesandregulatoryimplications.Itnavigatestheopportunitiesandchallengespresentedbycash?owunderwritingandprovidesinsightsintohowitexpands?nancialinclusionandenhancescreditassessmentacrossallconsumersegments.

Methodology

Thisreportcombinesprimaryandsecondaryresearchwithanalysistoprovidea

comprehensiveviewofcash?owunderwriting.TheprimarysourceisaDatosInsights

surveyof434globalconsumerlendinginstitutionsconductedinearly2024.Thesurveysamplerepresentedabroadrangeof?nancialinstitutions,providingquantitativeinsightsintoindustryattitudesandpractices(Figure1).

Figure1:SurveyInstitutionSize

Q.Whatisthetotalassetsizeofyourfinancialinstitution?(Base:150U.S.consumerlendinginstitutions)

LessthanUS$10billion23%

US$30billiontoUS$100billion

US$10billiontoUS$29.9billion

29%

Source:DatosInsightssurveyof434globalconsumerlendinginstitutions,Q1toQ22024

MorethanUS$100billion22%

25%

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Secondarysourcesincludestatisticsfromreputableindustryorganizations.Thereportalsoincorporatesregulatoryanalysis,mainlyfocusingonCFPBperspectives,tounderstandtheevolvingregulatorylandscape.Thedatawassupplementedwiththeexperienceand

knowledgeofDatosInsightsStrategicAdvisorssupportedbytheDatosInsightsknowledgebaseanddeskresearch.

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WhatIsCashFlowUnderwriting?

Cash?owunderwritingcomplementstraditionalcreditbureaudatatoevaluatea

borrower’s?nancialhealthbasedonreal-timetransactiondata.Thismethodanalyzesthein?owsandout?owsinaconsumer’sbankaccounts,providingadynamicand

comprehensiveviewoftheir?nancialbehavior.Cash?owunderwritingcapturesthe

nuancesofanindividual’s?nancialmanagement,includingthatindividual’sabilitytopay,byconsideringincomestability,spendingpatterns,andsavingshabits.Cash?owdataalsoprovidesareal-timeviewofoutstandingdebt.

Recentdataunderscoresthegeneralacceptanceofthismethod.AccordingtoarecentDatosInsightssurvey,88%ofU.S.consumerlendersaresomewhatmoreorfarmore

con?dentusingalternativecreditdatanowcomparedtoayearago(Figure2).

Figure2:Lender’sGrowingConfidenceinAlternativeCreditData

Q.Comparedtooneyearago,howconfidentareyouinmakingconsumer

lendingdecisionsbasedonalternativecreditdataandalternativecreditscores?

(Base:150U.S.consumerlendinginstitutions)

Somewhatmoreconfident

Farmoreconfident

Aboutthesameasayearago

Somewhatlessconfident

Source:DatosInsightssurveyof434globalconsumerlendinginstitutions,Q1toQ22024

23%

65%

11%

2%

Thisdatare?ectsagrowingrecognitionofthevalueofalternativedatainaddressing

traditionalcreditdatalimitationsandenhancinglendingdecisions.Furthermore,74%of

CashFlowUnderwriting:ReshapingtheLendingLandscape

consumersexpresscomfortinsharingtheircash?owdatawithlenders,indicatingagrowingacceptanceofthisapproach.

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Cash?owunderwritingisnotjustaboutexpandingcreditaccess;it’saboutenhancingtheaccuracyofcreditdecisionsacrossallconsumersegments.Providingamorecurrentanddetailed?nancialpictureallowslenderstomakemoreinformeddecisions,potentially

reducingriskwhileincreasingapprovalratesforcreditworthyborrowers.

KeytoCashFlowUnderwriting:OpenBanking

InOctober2024,theCFPB?nalizedaruletoadvanceopenbankingandstrengthen

consumer?nancialdatarights.ImplementingSection1033oftheConsumerFinancialProtectionActwouldrequiremost?nancialinstitutionstoprovideconsumersaccesstotheir?nancialdatathroughsecureAPIs.

Thismarksasigni?cantshiftin?nancialservices.Itwillchangehowconsumersusetheir?nancialdataandhowinstitutionsinnovate.Itpromisesincreasedtransparencyand

personalizationforconsumersbutpresentstechnicalandsecuritychallengesfor?nancial?rms.Therulealignswithglobaltrendsandwillspur?nancialservicesinnovation.

Openbankingisthecornerstoneofeffectivecash?owunderwriting,facilitatingsecureandef?cientaccesstoreal-time?nancialdata.Thistechnologicalframeworkenables

consumerstosecurelysharetheirbankinginformationwithauthorizedthirdparties,

pavingthewayformoreaccurateandtimelycreditassessments.WiththereleaseoftheSection1033rule,trueopenbankinghasbecomeareality.Itwillcreatemorespaceforinnovationandutilizationofbankingdataacrossdifferentusecases.

Thesymbiosisbetweenopenbankingandcash?owunderwritingistransformingthe

lendinglandscape.Lenderscanaccessawealthofconsumer-permissionedtransactionaldatabyleveragingstandardizedAPIs,offeringunprecedentedinsightsintoaborrower’s?nancialbehavior.Thisreal-timedata?owallowsformoredynamicriskassessment,

movingbeyondthelimitationsofperiodiccreditreports.

Importantly,openbankingaddressescriticalchallengesintraditionalunderwritingprocesses.Itreducestherelianceonmanualdocumentation,streamlinesveri?cation

1“ExperianFinds89PercentofLendersBelieveAlternativeCreditDataImprovesFinancialAccessforConsumersSeekingCreditDuringCovid-19Pandemic,”Experian,September17,2020,accessedNovember19,2024,

/newsroom/press-releases/2020/experian-finds-89-percent-of-lenders-believe-alternative-credit

-data-improves-financial-access-for-consumers-seeking-credit-during-covid-19-pandemic.

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procedures,andminimizestheriskoffraud.AstudybyExperianrevealsthat89%oflendersbelieveopenbankingdataenhancestheircreditdecisioningprocess.

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Moreover,openbankingempowersconsumersbygivingthemcontroloverwhothey

sharetheir?nancialdatawithandhowitcanbeused.Thisincreasestransparencyandcontrol.Asopenbankingadoptiongrows,itwillplayanincreasinglyvitalroleinshapingthefutureofcreditunderwriting.

WhyThisMattersNow

Traditionalcreditscoringmodelsdonotfullycapturethecomplete?nancialpictureofmodernconsumers.ThisgapisparticularlyevidentaftereconomicuncertaintiesandshiftingemploymentpatternsbroughtaboutbyglobaleventsliketheCOVID-19

pandemic.U.S.lendingexecutivesfeelthatthevalueoftraditionalcreditreportingiseroding(Figure3).

Figure3:ChallengesWithTraditionalCreditData

Q.Whatisthethegreatestchallengewithtraditionalcreditdata?(Base:150U.S.consumerlendinginstitutions)

Other

1%

Limitedvisibilityonnegative

paymenthistory

51%

Deletionofdelinquencydata

29%

Source:DatosInsightssurveyof434globalconsumerlendinginstitutions,Q1toQ22024

Reduceddatafurnishingfrom

third-partycollectionsagencies

19%

Recentdataunderscoresthispressingneed.AccordingtoasurveyconductedbyDatos

Insights,58%ofU.S.consumerlendinginstitutionsreportfeelingsomewhatlesscon?dentinmakinglendingdecisionsbasedsolelyontraditionalcredit?lesandscorescompared

2“ExperianFinds89PercentofLendersBelieveAlternativeCreditDataImprovesFinancialAccessforConsumersSeekingCreditDuringCovid-19Pandemic,”accessedNovember19,2024.

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toayearago(Figure4).Thisstatisticre?ectsagrowingrecognitionofthelimitationsinherentinconventionalcreditassessmentmethods.

Figure4:Lender’sConfidenceinTraditionalCreditData

Q.Comparedtooneyearago,howconfidentareyouinmakingconsumerlendingdecisionsbasedontraditionalcreditfilesandcreditscoresalone?

(Base:150U.S.consumerlendinginstitutions)

Farmoreconfidentinthisdata

Somewhatmoreconfidentinthisdata

Aboutthesameasayearago

Somewhatlessconfidentinthisdata

Farlessconfidentinthisdata

Source:DatosInsightssurveyof434globalconsumerlendinginstitutions,Q1toQ22024

32%

58%

2%

7%

1%

Creditriskmanagersattributetheirconcernspartiallytotheincreasingadoptionofbuynow,paylaterprogramsandotherquasi-creditproducts,whicharenottypicallyreportedtotraditionalcreditbureaus.Theyfeelthatthishasimpactedcreditscoresinsomecases.Withcash?owdata,alendercanseepaymentsagainstthesequasi-creditproductsandbetterincorporateanalysisintoanindividual’sabilitytopay.

Furthermore,theriseofthegigeconomyandnontraditionalincomesourceshascreatedasigni?cantsegmentofconsumerswhomayhavestable?nancesbutnotthecredithistorytypicallyrequiredbytraditionalunderwritingmodels.Youngpeopleandrecent

immigrantshavehaddif?cultyobtainingcreditduetoinadequatecreditexperiencesandpaymenthistories.Ineachofthesecases,cash?owunderwritingcancontributeto

expandingcreditaccessfortheover45millionunderbankedconsumerswholackcredithistory,have“unscorable”credit?les,orhaveinsuf?cientcredithistory.

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Thisisaresultof

3“CreditScoringAlternativesforThoseWithoutCredit,”U.S.GovernmentAccountabilityOffice,January5,2022,accessedNovember19,2024,

/blog/credit-scoring-alternatives-those-without-credit#

.

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providingamorecompleteandaccurateassessmentofthecreditworthinessofthese

individuals,promoting?nancialinclusion,andexpandingmarketopportunitiesforlenders.

Asanindirectbene?t,cash?owinsightscanrevolutionizefrauddetection.Byestablishingnormaltransactionpatterns,?nancialinstitutionscanmorequicklyidentifyandrespondtounusualactivities,protectingconsumersfrom?nancialcrimes.Accordingtoarecentstudy,42%offraudattemptsnowusearti?cialintelligence,makingsophisticateddetection

methodsincreasinglycrucial.

Thetimelinessofthisshiftisfurtheremphasizedbyregulatorysupport.TheCFPBhas

expressedfavorableviewsonusingcash?owdataincreditdecisioning,recognizingits

potentialtoenhanceaccuracyandexpandcreditaccess.Thisregulatoryendorsement

providesaconduciveenvironmentforlenderstoinnovateandadoptmorecomprehensiveunderwritingpractices.

UseCasesofCashFlowData

Integratingcash?owdataintoalender’soriginationprocessisnotnew.Income

veri?cationandassetveri?cationhavebeenaroundfordecades,albeitwithpaperstatements,andopenbankingusecasesemergedroughlyadecadeago.

IncomeVeri?cation

Cash?owdataanalysisenablesreal-timeincomeveri?cation,eliminatingmanual

documentationrequirementswhileprovidingdeeperinsightsintoearningspatterns

acrossdiverseincomesources.Thisautomationenhancesbothriskassessmentaccuracyandcustomerexperience.

AssetVeri?cation

Cash?owdatasimpli?esassetveri?cationbyprovidingacomprehensiveviewofaborrower’s?nancialholdings.Lenderscancon?rmtheexistenceandvalueofassetsthroughtransactionhistories,reducingrelianceonmanualdocumentation.This

streamlinedprocessenhancesef?ciencyinloanunderwriting.

CalculatingDebt-to-Income(DTI)Ratio

Cash?owdataenableslenderstocalculateDTIratiosmoreaccuratelyandautomatically.Lenderscanverifyincomeandexpensesbyaccessingup-to-date?nancialinformation

directlyfrombankaccounts.Thisstreamlinestheprocess,reduceserrors,andprovidesamorecurrentpictureoftheborrower’s?nancialsituation.

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ExpandedCashFlowDataUses

Withstandardization,anincreasingnumberofparticipants,andtheconsistentavailabilityofreal-timecash?owdata,newusecaseshavebeendevelopedthatimproveef?ciency,reducerisk,andincreaseaccesstocredit.

Second-LookUnderwriting

Second-lookunderwritingemploysalternativedatasourcestoreevaluateapplicationsthatwouldhaveotherwisebeendeclined(theyarenotdeclinedinthisscenario).Analysisof

cash?owdataandpaymentbehaviorsrevealscreditworthyconsumersoverlookedbytraditionalcreditevaluationmethods,enabling?nancialinstitutionstoexpandtheir

lendingportfoliowhilemaintainingriskparameters.

PersonalizedLoanOffers

Cash?owdataenableslenderstore?neandpersonalizeloanoffers.Byanalyzing

spendingpatterns,savingshabits,andincomestability,lenderscanoffermorecompetitiverates,highercreditlimits,ortailoredrepaymentterms.Thisdata-drivenapproachleadstomoreattractiveoffersforconsumersandpotentiallyhigherconversionratesforlenders.InarecentHarrisPoll,74%ofconsumersacrossgenerationswantmorepersonalized

bankingexperiences.

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ExpandingAccesstoCredit

Byincorporatingcash?owdata,lenderscanpotentiallyapprovemoreborrowerswhomaynotmeettraditionalunderwritingcriteria.Thiscanhelpexpandaccesstopersonalloans

andlinesofcredit,particularlyforunderservedcommunities.

PortfolioRiskManagement

Real-timecash?owdataenhancescreditportfolioriskmonitoringeffectivenessby

providinglenderswithup-to-dateinsightsintoborrowers’?nancialhealth.Thisenables

earlydetectionofpotentialdefaults,moreaccurateriskassessments,andtimely

interventions.Lenderscanproactivelymanagetheirportfolios,reducingriskexposureandimprovingperformance.

4“2024Q2-HarrisPoll:KeyInsightsFromConsumerStudyonCross-generationalBankingPreferences,,”Q2,August7,2024,accessedNovember21,2024,

/analyst-overview/the-personal-bank-2024-q2-harris-poll-report-2-2#main

-content.

Regulator’sPerspective

Regulatorybodieshaveshownincreasingsupportforcash?owunderwriting,recognizingitspotentialtoenhance?nancialinclusionandimprovecreditdecisioningaccuracy.TheCFPB,inparticular,hasexpressedfavorableviewsontheuseofcash?owdataincredit

underwriting.

“Cashflowdatamayprovidelenderswithmoreinformationabouthowapplicantsmanagecurrentobligationsthantheycouldlearnfromapplicants’creditrepaymenthistories

alone.”

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AlexeiAlexandrov,AlyssaBrown,andSamyakJainCFPB

MoreonRegulation

Regulatorsappreciatethatcash?owunderwritingcanprovideamorecomprehensiveandcurrentpictureofaborrower’s?nancialhealth.Thisalignswiththeirmandatetoensurefairandaccuratecreditassessments.TheCFPBhasnotedthatcash?owdatacanbe

particularlybene?cialforconsumerswiththinornocredit?les,potentiallyexpandingcreditaccesstomillionsofAmericans.

However,thissupportcomeswithexpectationsofresponsibleimplementation.Regulatorsemphasizetheneedfortransparentprocessesandrobustdataprotectionmeasures—bothareaddressedwithinCFPB’sSection1033andadherencetofairlendinglaws.Theyare

particularlyfocusedonensuringthattheuseofcash?owdatadoesnotinadvertentlyintroducenewformsofdiscriminationorunfairpractices.

ChallengestoWidespreadAdoption

Adoptingcash?owunderwritingrepresentsasigni?cantleapforwardinourabilityto

accuratelyandinclusivelyassesscreditworthiness.Most?nancialinstitutionswillneedto

addressdataaccessandstandardization,privacyandsecurity,integrationwithexisting

systems,modelvalidation,andconsumereducation.However,thesechallengesaretypicalofanytransformativetechnologyinthe?nancialsector.

5AlexeiAlexandrov,AlyssaBrown,andSamyakJain,“LookingatCreditScoresOnlyTellsPartoftheStory—CashflowDataMayTellAnotherPart,”CFPB,July26,2023,accessedNovember19,2024,

/about-us/blog/credit

-

scores-only-tells-part-of-the-story-cashflow-data/.

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StandardizedAPIsareessentialforenhancinginteroperabilityandef?ciency,particularlyinthe?nancialsector.TheFinancialDataExchange(FDX)isleadingeffortstoestablisha

standardizedAPIforopenbankingtocreateacommonframeworkfordatasharingthat

fostersinnovationandsecurity.StandardizedAPIsreducecostsandcomplexityby

streamliningcommunicationbetween?nancialinstitutionsandthird-partydevelopers

whilesimplifyingregulatorycompliance.Ultimately,FDX’sinitiativerepresentsasigni?cantadvancementtowardamoretransparentandef?cient?nancialecosystem,improving

servicesandconsumerexperiencesinanincreasinglydigitallandscape.

Integrationwithexistingsystemsisachievablewithproperplanningandinvestment.

Modelvalidationandbiaspreventionareongoingprocessesthattheindustryiswell-equippedtohandle,givenitsexperiencewithtraditionalcreditmodels.Consumer

education,whilechallenging,presentsanopportunitytoengagewithcustomersanddemonstratethebene?tsofthisprogressivesolution.

Thesechallengesarenotbarriersbutrathersteppingstonestowardamoreinclusiveandaccuratecreditassessmentlandscape.Many?nancialinstitutionsarealreadysuccessfullyimplementingcash?owunderwriting,provingitsviabilityandpotential.Astheindustrycontinuestoevolve,DatosInsightsexpectsthesechallengeswillbeaddressed

systematically,leadingtothewidespreadadoptionofthisapproachtocreditdecisioning.

IndustryAdoptionofCashFlowUnderwriting

Severalinnovativecompaniesareleadingthechargeincash?owunderwriting,demonstratingitspotentialtotransformlendingpractices.

“Manycompaniesarenowexploringnewunderwriting

modelsthatreturntocoreprinciples—assessingabilitytorepaywithoutattemptingtouseoutsideinformationto

modelaconsumer’spresumedabilitytorepay.Transactiondatawillbeespeciallyusefulforthesepurposes.”

RohitChopra,Director,CFPBRemarksatMoney20/20,October2024

RocketCompanies

RocketCompanies(NYSE:RKT)isa?ntechplatformthatincludesmortgages,personalloans,andother?nancialservicebusinesses.Itprovidesconsumerswiththeabilitytosharetheir?nancialdataforcash?owunderwritingandstreamlinedloanapplications.

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“ByworkingwithPlaidtostreamlinehowourclientssharetheirfinancialinformationwithus,wecanfocusonwhat

Rocketdoesbest—creatingourAI-drivenprocessestohelpeveryonehome.”

ShawnMalhotra,ChiefTechnologyOfficerRocketCompanies

H&RBlock

H&RBlock,Inc.(NYSE:HRB)providesglobaltaxpreparationservices,?nancialproducts,andsmall-businesssolutions.Thecompanyoffersconsumersashort-term,small-dollarloanproductcalledtheEmeraldAdvanceLoan.

“Augmentingourtraditionalcreditmodelswithcashflowunderwritingwillhelpusreachmoreconsumers,includingpeoplewe’reunabletolendtotoday.”

LesWhiting,ChiefFinancialServicesOfficerH&RBlock

Upstart

Upstart(NASDAQ:UPST)isalendingmarketplaceconnectingconsumerstobanksandcreditunions.Upstart’splatformincludespersonalloans,automotiveretailandre?nanceloans,homeequitylinesofcredit,andsmall-dollar“relief”loans.

“InafirstforUpstart,webeganusingcashflowdataaspartoftheriskmodelforsmall-dollarloans.Thisincremental

datahasledtoincreasedapprovalratesandwilleventuallybecomeavailableforallourloanproducts.”

DaveGirouard,CEOUpstart

MoneyLion

MoneyLion(NYSE:ML)isa?nancialtechnologybusinessprovidingpersonalizedproducts,content,andmarketplacetechnology.MoneyLionisintegratingreal-timecash?owdata

intotheloanapplicationandprequali?cationjourneyviatheirEnginemarketplaceplatform.

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“AtMoneyLion,ourmissionhasalwaysbeentoempower

consumerswiththetoolsandresourcestheyneedtomakeinformedfinancialdecisions.BypartneringwithPlaid,we’readvancingthatmissionbyintegratingreal-timecashflow

dataintoourhosteddecisioningengineandcredit

marketplace,streamliningaccesstocreditandenablingsmarter,data-drivenlendingdecisioning.”

TimHong,ChiefProductOfficerMoneyLion

OneMain

OneMainFinancial(NYSE:OMF)providesnonprimeconsumerswithpersonalloansandcreditcardsavailableonlineandin1,300locations.

“Acoupleofyearsago,westartedcollectingbankaccountdataasawayofdoingincomeverification,whichisnowpartofourcreditmodelsforourlendingbusiness.”

MicahConrad,EVPandCFOOneMain

Oportun

Oportun(Nasdaq:OPRT)isamission-driven?nancialservicescompanyofferingpersonalloansandsavingsproductsthatareavailableonlineandviaretaillocations.

“Wearealsoexpandingtheuseofthebanktransaction

modelwelaunchedearlierthisyearbygivingmore

applicantstheopportunitytosharetheirdata,providingamorecompletesnapshotoftheircurrentfinancialsituation.”

RaulVazquez,CEOOportun

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Conclusion

Cash?owunderwritingrepresentsasigni?cantleapforwardincreditassessment,offeringamorecomprehensiveanddynamicapproachtoevaluatingcreditworthiness.Thiswhitepaperhasshowntheimpactitcanhaveon?nancialinclusion,enhancingcreditdecisionsacrossallconsumersegmentsandopeningupnewpossibilitiesin?nancialservices.

Integratingopenbankingtechnologyis