Prism Data has partnered with Plaid to make it easier for businesses to analyse and use consumer-permissioned Open Banking data to underwrite consumers. Plaid enables consumers to connect financial accounts at over 12,000 institutions globally to more than 8,000 apps.

Prism Data, with tools like its CashScore and Insights products, helps financial providers make smarter credit decisions and drive better business outcomes by analysing data from connected accounts. The new integration with Plaid’s Relay Token product allows for a token access model between Prism, its lending customers, and Plaid. This allows Prism to deliver a more efficient cash flow underwriting experience for our clients by enabling us to retrieve consumer-permissioned data simply and securely.

Through Plaid’s Assets API, lenders can verify consumer-permissioned cash-flow data including detailed information about a borrower’s identity, assets, balances, and up to two years of transaction history, directly from their bank account. Many of Prism’s clients use this information to help determine whether an applicant’s cash flow is sufficient to qualify for a loan or credit product. Now, lenders can more easily integrate consumer financial information shared via Plaid into Prism Data, whose products provide rich and relevant analytics.

More details about the partnership Upon receiving the consumer-permissioned data from Plaid, Prism structures and analyses it before delivering to clients the insights and scores they need to understand a consumer’s current financial position, key trends, and risk profile more deeply. Prism’s products give lenders an analytical edge by more fully illuminating a consumer’s financial position and risk profile. Prism’s Insights are built upon categorised bank account transactions that are distilled into thousands of trended attributes, including details on income stability and timing, balance trajectories, savings rates, rental payments, use of emerging forms of borrowing like Buy Now, Pay Later (BNPL) loans, and much more.

This information is vital to understanding a consumer’s current financial condition and ability to repay but is missing from traditional credit reports. Prism’s CashScore credit scoring model leverages a subset of these Insights to give lenders a proven, compliant, explainable, and automated way to estimate the risk of repayment and first-party fraud. .