Experian launches new Cashflow Data Bureau

Experian has announced the launch of Experian Cashflow Data Bureau, Inc., a new consumer reporting agency operating under the Fair Credit Reporting Act (FCRA). The agency is designed to provide financial institutions with consumer-permissioned cash flow insights to improve underwriting decisions and expand credit access.

According to Experian, integrating cash flow insights with traditional credit data can increase predictive performance by up to 40% and potentially increase credit approvals by up to 25% without increasing risk tolerance. The service aims to address the needs of the approximately 20% of consumers who lack access to or have damaged credit, many of whom believe that including recent income and banking activity would have resulted in more favorable lending terms.