Prism Data, a cash flow underwriting and data analytics platform, announced today that it has raised $5 million in seed funding.
This investment round was reportedly “led by Obvious Ventures, with participation from Citi Impact Fund and Core Innovation Capital.” Prism’s new funding follows “a previously announced strategic investment from Samsung Next.”
This new capital infusion “will empower Prism Data to further expand its team and enhance its product suite—including the market-leading CashScore®—in response to growing demand from financial institutions, fintechs and other businesses for cash flow underwriting solutions.”
Prism’s technologies, developed “over nearly a decade, have demonstrated the power of consumer cash flow underwriting to lower loss rates, expand access to credit, and greatly enhance visibility into a consumer’s current financial position.”
Prism allows any business to quickly and easily “translate raw banking data into actionable insights and risk scores.”
Jason Rosen, Prism’s CEO and Founder, said:
“Open banking creates new possibilities for evaluating creditworthiness. Prism’s infrastructure transforms that potential into reality, equipping clients with analytical advantages to strengthen their businesses and better serve consumers.”
Demand for Prism’s technology is a response “to rising credit card and loan delinquencies, which have prompted many mainstream financial institutions to significantly tighten their lending criteria to more closely manage risk.”
Additionally, a new proposed rule that the Consumer Financial Protection Bureau released last week promises “to make it easier and safer for consumers to share their personal bank data with financial service providers; with help from Prism, those providers can utilize this consumer-permissioned bank data to expand access to credit, improve decision-making, and power new products and services.”
Jason Rosen, Prism’s CEO and Founder, said:
“Open banking creates new possibilities for evaluating creditworthiness. Prism’s infrastructure transforms that potential into reality, equipping clients with analytical advantages to strengthen their businesses and better serve consumers. We’re thankful for the support from Obvious Ventures, Citi Impact Fund and our other investors in helping write Prism’s next chapter.”
Prism’s products streamline “the structuring, analysis and interpretation of open banking data, providing actionable insights clients can use to enhance underwriting strategies, reduce first-party fraud, optimize portfolio management, and more.”
Similar to conventional credit models like FICO or VantageScore, lenders can leverage Prism’s CashScore and other highly predictive tools “to more precisely assess credit risk across various consumer contexts—from credit cards and personal loans to mortgages and auto loans.”
In addition to this new funding, Prism Data also announced “that it has hired Ben Donahue as a senior sales executive.”
Donahue has more than a dozen years of experience “in sales and product development, with a particular strength in helping financial institutions improve their underwriting using cash flow underwriting and consumer banking data.”
He previously served as “the head of sales for Nova Credit, and more recently, as the vice-president of sales for Atom Finance.”
