Prism Data teams up with Stratyfy to improve lending decisions

A new partnership between US-based women-led fintech Stratyfy and cash flow underwriting and data analytics platform Prism Data aims to help lenders make more informed decisions.

Prism Data uses Open Banking analytics and cash flow underwriting to derive new insights from consumer-permissioned deposit account transaction data.

Its proprietary ‘CashScore’ solution takes thousands of financial data points that are typically missing from traditional credit reports and which it believes can better determine creditworthiness, including income, assets, expenses, volatility, and ability to pay, and from these, generates a three-digit score.

Stratyfy will use Prism Data’s cash flow data and scores to aid lenders in instances where traditional credit data is deemed “insufficient”.

Laura Kornhauser, chief executive officer and co-founder of Stratyfy, said: “Solely depending on traditional credit data can paint an incomplete financial picture of loan applicants, which results in lenders missing out on good, profitable customers.

“By combining our proprietary AI/ML technology with Prism Data’s ‘CashScore’, we can harness cash flow data to help lenders accurately and transparently identify credit-worthy customers who may have been overlooked otherwise.”

Last year, the fintech partnered with the Beneficial State Foundation on the ‘Underwriting for Racial Justice’ program, which releases capital for people of colour, promotes equitable lending practices and fosters economic inclusion.

The two-year partner program will see 20 lenders use Stratyfy’s technology to forecast creditworthiness without bias and refine their loan policies.

Prism Data’s president, Erin Allard, added: “Prism’s CashScore enables credit decisions that are more accurate and more inclusive — allowing lenders to say ‘yes’ to up to 30% more customers without taking on additional risk.

“Paired with Stratyfy’s cutting-edge decisioning technology, we’re confident lenders will be better positioned to advance financial inclusion and boost profits at the same time.”

Prism Data was spun off from credit card fintech Petal in May 2023 and, in the same month, partnered with data network Plaid.