Plaid is adding new artificial intelligence models to its network that powers digital finance, aiming to help financial firms with their decisions across credit, fraud and payments, the company said in a Tuesday (Oct. 6) press release emailed to PYMNTS.

One new model, Instant Link, lets eligible consumers share their cash flow insights with lenders in seconds by connecting their financial accounts to Plaid Consumer Reporting Agency. This cash flow data gives lenders a fuller picture of the consumer’s ability to repay, especially in cases where the consumer falls outside the traditional credit lens, according to the release.

Another new model, LendScore 2 (Ls2), uses cash flow underwriting and predicts a borrower’s ability to repay a loan with 42% greater strength than with traditional credit data alone, the release said. In addition, specialized models are now available for auto loans, home loans and short-term loans, per the release.

A third new model introduced Tuesday, LendScore Arc, is a transformer-based credit risk model that learns from the order and timing of a borrower’s transactions. This capability makes LendScore Arc “Plaid’s best-performing credit model yet, for lenders ready to leverage transformer-based credit modeling,” the company said in the release.

Plaid Credit Product Lead Michelle Young said in the release that while cash flow data provides a more complete picture of a borrower, lenders haven’t always been able to access these insights and act on them.

“The next generation of LendScore and specialized models close that gap at scale, and with Arc, we’re giving lenders new tools to expand access to more affordable credit,” Young said.

Source link