Prism Data & Plaid partner to enhance credit decision-making for lenders

By Delisha Fernandes

Prism Data, a cash flow and analytics platform, announced its partnership with Plaid, a data network powering the digital financial ecosystem.

The platform’s new integration with Plaid’s Relay Token product allows for a token access model between Prism, its lending customers, and Plaid. This allows Prism to deliver a more efficient cash flow underwriting experience for our clients by enabling us to retrieve data simply and securely.

Open finance enables better lending and decision-making by considering consumer-permission data that provides a more holistic picture. “Using more current and comprehensive data can provide lenders with a more holistic view of their borrowers’ finances and improve underwriting outcomes,” said Tamara Romanaek, Head of Partnerships at Plaid.

“With our partnership with Prism, not only can we help lenders simplify real-time consumer permissioned data retrieval, but we are also able to help those lenders access powerful analytics and actionable insights for underwriting. We are thrilled to empower lenders with more robust access to cash flow data to improve borrower results.”

Prism’s Insights are built upon categorised bank account transactions that are distilled into thousands of trended attributes, including details on income stability and timing, use of emerging forms of borrowing like Buy Now, Pay Later (BNPL) loans and much more.

“This is a first-of-its-kind partnership and a key milestone in building out the next generation of credit scores and risk analytics powered by open banking,” said Jason Rosen, CEO of Prism Data. “I expect this will significantly speed the adoption of consumer cash flow underwriting, allowing lenders to apply open banking-based insights to their businesses more easily than ever.”