Data analytics and consumer credit reporting company Experian is launching a new consumer reporting agency (CRA) called the Experian Cashflow Data Bureau. The new CRA’s goal is to help banks leverage consumer-permissioned cash flow insights to support underwriting decisions.

The Experian Cashflow Data Bureau, which operates under the Fair Credit Reporting Act (FCRA), aims to help the nearly one-in-five consumers that lack access to credit or have damaged credit. Experian found that 60% of consumers who have either been denied credit or received less-than-favorable terms believe that the outcome of their application would have been different if the lender would have used cashflow underwriting, taking into account the borrower’s recent income and banking activity along with their credit history.

With the new Cashflow Data Bureau, Experian is creating an FCRA-regulated foundation for its broader cash flow decisioning ecosystem. The new platform leverages consumer-permissioned bank account data aggregation and report generation to help financial institutions bring cashflow insights into their existing decision-making process.

“We’ve spent decades building the trusted data, analytics, technology, and expertise financial institutions depend on every day,” said Experian North America CEO Jeff Softley. “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.”

The new Cashflow Data Bureau will serve as the foundation for Experian’s broader cash flow ecosystem, bringing together existing cash flow products such as Cashflow Attributes and Cashflow Score with capabilities for consumer consent, data aggregation, standardized reporting, analytics, and decisioning.

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