Experian has introduced Experian Cashflow Data Bureau, Inc., a new consumer reporting agency designed to help financial institutions incorporate consumer-permissioned cash flow information into credit decisions. The offering aims to give lenders a broader view of consumers’ financial circumstances and support more informed underwriting while expanding responsible access to credit.
Operating under the Fair Credit Reporting Act (FCRA), the new bureau brings cash flow data into a regulated framework. Experian unveiled the initiative at its annual Vision conference in San Antonio as lenders increasingly look beyond traditional credit histories for current indicators of financial health.
The company said nearly one in five consumers either lacks access to credit or has damaged credit. Its research also found that 60% of consumers who had previously been denied credit or received less favorable terms believe the outcome could have changed if lenders had considered recent income and banking activity alongside credit history.
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“We’ve spent decades building the trusted data, analytics, technology and expertise financial institutions depend on every day,” said Jeff Softley, CEO of Experian North America. “With Experian Cashflow Data Bureau, we’re applying that experience to cash flow and making it easier for our clients to adopt these insights with confidence and at scale. By helping lenders understand a more complete picture of consumers’ financial lives, we can power more-informed decisions and ultimately help more consumers access the financial products and services they need, when they need them.”
Experian said combining cash flow insights with credit information can increase predictive performance by as much as 40% and potentially raise approval rates by up to 25% without changing lenders’ risk tolerance.
The bureau forms the foundation for an end-to-end cash flow ecosystem covering consumer consent and bank connectivity, standardized cash flow reports, transaction categorization, attributes, scoring, analytics and decisioning. Its portfolio also includes a Credit and Cashflow Score that combines permissioned cash flow information with Experian’s traditional and alternative data assets.
By consolidating these capabilities through one provider, Experian aims to simplify implementation for lenders and accelerate the adoption of cash flow-based underwriting.