Experian Launches Cashflow Score to Enhance Credit Access

Experian has launched a new product called Cashflow Score, aimed at enhancing credit decision-making for individuals with limited or no credit history. This solution enables lenders to assess applicants' financial behavior by analyzing consumer-permissioned transaction data, including income, expenses, and cash reserves. Nearly 20% of Americans lack traditional credit scores, making it difficult for them to access credit, but most have bank accounts, allowing Experian to provide valuable cashflow insights indicative of credit risk. The Cashflow Score ranges from 300 to 850 and can be used alongside traditional credit scores or independently. Scott Brown, Experian's group president, emphasized the company's commitment to leveraging data analytics to improve access to financial services for underserved consumers. This initiative reflects a broader trend towards open banking and innovative lending solutions in the financial industry.