The Pioneers of Cashflow Underwriting: How EDGE is Transforming Lending

EDGE Insights

Few innovations have shown as much promise for expanding credit access as cashflow analytics. While many fintech companies now tout the benefits of this approach, EDGE pioneered this technology, building real-world success before cashflow underwriting became the industry's newest buzzword.

Building From Experience, Not Theory

When EDGE launched in early 2021, we weren’t merely pursuing a trendy concept. The company was built on a foundation of practical lending experience dating back to April 2018, when our sister company, CreditNinja, funded its first personal loan using cashflow analytics. This wasn't an academic exercise or a venture capital experiment – it was a practical solution to a real market problem, developed by lenders for lenders.

"We didn't just theorize about cashflow analytics," said Brian Reshefsky, EDGE's founder and CEO, who started building the company in January 2021. "We used these methods to build a successful, profitable lending operation first. Only then did we package that expertise into a platform that other fintechs and financial institutions could leverage."

That distinction matters tremendously. While others have recently rushed to plant their flags in this space, EDGE's solutions are built on years of loan outcome data from real consumer risk decisions – hundreds of millions of dollars in originated loans and capital at risk that proved the concept worked before ever offering a standalone B2B product.

Beyond Summary Data

What separates the pioneers from the followers in this space isn't just timing, but depth. Many recent entrants to the cashflow analytics field deliver intuitive insights from bank transaction data that lack the precision and sophistication needed to make cashflow data as central in their risk decisions as traditional credit reports and scores.

As an established Consumer Reporting Agency (CRA), EDGE delivers far more than data and first-level insights. Its comprehensive platform spans the entire lending lifecycle – from lead screening to post-origination monitoring – with purpose-built solutions that are transforming how financial institutions make decisions across the consumer credit lifecycle.

The company's suite includes income verification that captures non-traditional income sources, account verification that streamlines ACH setup while reducing fraud, and risk scores developed through hard-won lending experience – not theoretical models. This end-to-end approach represents a level of sophistication that can only come from years of practical application.

Expanding Credit Access Through Better Analytics

Perhaps the most compelling aspect of EDGE's pioneering work is its impact on credit accessibility. Traditional credit scoring systems have long left millions of Americans on the sidelines –individuals who are financially responsible but lack extensive credit histories.

"Tens of millions of Americans have no credit score at all, and millions more have short credit histories that may not tell the whole story," said Reshefsky. "Our cashflow insights platform helps financial institutions see beyond traditional credit data to make smarter, more inclusive lending decisions."

For credit unions in particular, this capability provides a powerful tool to better serve their communities and members. By adding cashflow insights to their lending toolkit, credit unions can approve more creditworthy members who might otherwise be overlooked, while maintaining sound risk management practices.

The Value of First-to-Market Experience

As the cashflow analytics market continues to attract new entrants, lenders would be wise to consider the value of experience when selecting a provider. EDGE's first-to-market advantage isn't just about bragging rights – it translates to measurably better performance in real-world lending decisions.

"Those years in the trenches, figuring out cashflow analytics and using the technology ourselves, translates directly into the performance of our platform today," said Reshefsky. "When you look at an empirical comparison, you see it instantly."

That empirical advantage stems from several factors. As a CRA, EDGE delivers adverse actionable insights that maintain predictive power while adhering to regulatory requirements. The company's models are built on reported loan outcomes rather than theoretical projections. And its consultative approach goes beyond mere software delivery to provide personalized implementation support.

Looking Forward

As cashflow underwriting continues its transition from an innovative concept to industry standard, EDGE is well-positioned to maintain its leadership position. The company’s focus on credit unions represents a strategic decision to partner with institutions that can most effectively leverage these insights to fulfill their mission of financial inclusion.

With a fast-growing customer base, EDGE is poised for significant expansion. Yet the company’s leadership maintains that this growth will be driven not by marketing hype, but by the same evidence-based approach that has defined its journey from the beginning.

In a space increasingly crowded with newcomers claiming to have reinvented lending, EDGE stands apart as a genuine pioneer – one with the real-world results to prove it.