Stratyfy, a Fintech confronting bias in AI and optimizing credit risk decisions with transparent machine learning solutions, announced its partnership with Prism Data, a cash flow underwriting and data analytics platform.
Prism Data enabled modern cash flow underwriting “that uses digital deposit account data to expand access to credit for millions of consumers who lack traditional credit history or for whom traditional credit history does not paint the full financial picture.”
As part of this strategic partnership, Stratyfy will “leverage Prism Data’s cash flow data and scores to help lenders make more informed decisions in cases where traditional credit data is insufficient.”
Laura Kornhauser, CEO and co-founder at Stratyfy, said:
“At Stratyfy, we are dedicated to building a more inclusive financial system that is also sustainable. That is only possible with smarter credit decisioning, and our partnership with Prism Data is a testament to this mission. Solely depending on traditional credit data can paint an incomplete financial picture of loan applicants, which results in lenders missing out on good, profitable customers. By combining our proprietary AI/ML technology with Prism Data’s CashScore®, we can harness cash flow data to help lenders accurately and transparently identify credit-worthy customers who may have been overlooked otherwise.”
Prism Data’s proprietary CashScore solution “leverages thousands of financial data points that are typically missing from traditional credit reports, simplifying complex cash flow underwriting to an intuitive three-digit score.”
CashScore incorporates important financial factors “that can better determine creditworthiness, including income, assets, expenses, volatility, and ability to pay.”
Lenders can use CashScore on its own to “approve or decline credit applications or in conjunction with traditional credit models and scores.”
Prism Data President, Erin Allard said:
“We’re thrilled to partner with Stratyfy to offer customers breakthrough cash flow underwriting solutions. Prism’s CashScore enables credit decisions that are more accurate and more inclusive — allowing lenders to say ‘yes’ to up to 30 percent more customers without taking on additional risk. Paired with Stratyfy’s cutting-edge decisioning technology, we’re confident lenders will be better positioned to advance financial inclusion and boost profits at the same time.”
Prism also offers thousands of predictive attributes “through its Insights product that lenders can use to develop custom models, craft sophisticated credit strategies, and segment their users at a granular level.”
This announcement builds on Stratyfy’s ongoing efforts “to expand the credit box with its proprietary AI/ML technology.”
Last year, Stratyfy announced a partnership “with the Beneficial State Foundation on the Underwriting for Racial Justice program, which helps unlock capital for people of color, promote equitable lending practices, and foster economic inclusion.”
As part of this two-year pilot program, 20 U.S. lenders are “leveraging Stratyfy’s technology to predict creditworthiness without bias and refine their loan policies to drive fairness.”
