Brian Reshefsky - CEO
Lender profitability could be peaking: interest rates are high, delinquency rates are dropping, but borrowers are sitting on the sidelines.
This WSJ article suggests that lenders could “start lending to a wider range of people” to combat this trend (while warning of potential risk). https://hubs.la/Q02Zl2W90
Now seems like the time for lenders to expand their credit box with cashflow underwriting – without increasing risk of defaults.
Reminder: cashflow underwriting leverages real-time insights into a consumer's income and spending patterns. It provides lenders with a more holistic and dynamic view of a borrower’s ability to repay that is not reflected in traditional, backward-looking credit scores.
Portfolio growth could be a simple proposition: our data shows a minimum 6% boost in qualified approvals with second looks alone using EDGE proprietary insights from open banking data (https://hubs.la/Q02Zl2Y00).
Add inclusion for underserved borrowers — gig workers, entrepreneurs, or those with limited credit history— and you’re growing your addressable market by millions.
Alternatively, you could offer better terms to applicants – armed with cashflow data you’ll be able to identify the qualified borrowers that have been put in the wrong risk bucket.
Credit unions, take notice! This next year could be a huge opportunity to help your members. According to Happy Money, refinancing credit card debt into unsecured personal loans could save U.S. households over $80 billion in 2025 (https://hubs.la/Q02ZkSQG0).
The question now isn’t whether lenders can afford to implement cashflow-based underwriting; it’s whether they can afford NOT to.
Are you considering cashflow underwriting? What’s holding you back? Let’s discuss in the comments! 👇