As the financial landscape continues to evolve, Yodlee partnered with American Banker to host a webinar featuring industry professionals from Yodlee and Equifax. The conversation focused on how consumer-permissioned cash flow data is revolutionizing credit access, especially for underserved and credit-invisible populations. The session highlighted both the practical applications and far-reaching impact of this data, demonstrating how lenders can utilize these insights to make more informed, inclusive credit decisions in today's dynamic economy.
How can lenders effectively integrate cash flow data analysis into their existing systems? What are some real-world examples that showcase the successful application of cash flow data in credit decision-making? How could potential regulatory changes influence the adoption and use of cash flow data in the lending industry?
Read on for a high-level summary of the conversation, and click here to watch the webinar on-demand.
A Foundational Shift in Credit Assessment
"Yodlee has been foundational in a lot of the consumer-permissioned data for years," said Terry McKeown, Credit and Analytics Solutions Consulting Director at Yodlee, who opened the session by framing the conversation in Yodlee's 25-year legacy of empowering top-tier financial institutions. With nearly 50 million end users annually, Yodlee's data infrastructure provides a potentially rich source of real-time financial insight.
Terry emphasized that cash flow analysis enables lenders to go beyond traditional credit metrics, providing a more comprehensive picture of an applicant's financial behavior, particularly when that person lacks a robust credit history.
“When we provide a view of income coming into the account, along with bills and expenses going out, we can clearly see a borrower’s monthly cash flow—positive or negative. This helps us better understand what’s left over at the end of the month and whether they have the capacity to take on a new loan,” he noted.
This granular visibility is essential when assessing creditworthiness among consumers who may not appear in traditional data sets but consistently meet financial obligations, such as rent, utilities, and subscription services.
Widening the Lens: Adoption Across Industries
The conversation then turned to Mike Pecen from Equifax, who shared compelling observations about how cash flow data is gaining traction across a variety of sectors, not just fintech.
“In our experience, we’re seeing this used across a wide variety of use cases and markets. I wouldn’t say it’s surprising, but five years ago, if you’d asked me the same question, I probably would have said this data was primarily for fintech companies. But adoption has grown significantly—we’re seeing it used well beyond what many consider traditional fintech.”
Mike also forecasted broader uses of cash flow data beyond initial underwriting.
“Some leading-edge companies are already using cash flow data—not just for initial underwriting, but also in ongoing account reviews,” Mike noted. “I expect to see broader adoption of this use case, not only in consumer accounts but increasingly in commercial ones as well.” He added, “Cash flow underwriting has been a standard in small business banking for quite some time.”
Real-Time Decision Making in a Volatile Economy
Next, Yifan Cui, Principal Director of Credit Products at Yodlee, discussed how behavioral changes triggered by economic pressures are influencing credit risk and how cash flow data enables lenders to respond in real-time.
"Stimulus checks, rising interest rates, inflation spikes, and the growth of gig work have all contributed to a dramatic shift in how people earn, spend, and save," Yifan explained.
Among the shifts are savings rates that dipped from a pre-lockdown high of 6% to just 3.9% in 2024, rising delinquencies on credit and auto loans, and the increasing prevalence of side jobs, now held by 36% of American adults. Crucially, many of these trends are invisible to traditional credit models.
She emphasized that Yodlee's analytics team converts cash flow patterns, like income stability or rising savings, into predictive indicators that reflect consumers' real-time financial health.
Granular, Timely Insights for Lenders
Terry rejoined the conversation to emphasize the transformative potential of this level of granularity.
“This type of cash flow data offers a more granular, timely view than traditional sources. With transaction-level detail, you can see changes and respond much more quickly,” he explained.
In a volatile economy, reacting swiftly to shifts in a household’s financial picture is crucial, not just to help mitigate risk, but to better support consumers during times of stress.
Key Takeaways from the conversation include:
- Cash flow data provides a more comprehensive financial picture of underserved or credit-invisible consumers by capturing their everyday financial behavior.
- Adoption is expanding beyond fintech, reaching traditional banks, telecom companies, and small business lenders.
- Economic volatility has increased the demand for real-time insights into financial health, a need that traditional credit scores can't meet.
- Buy Now Pay Later, gig work, and subscriptions are reshaping consumer financial behavior, and cash flow analytics are the only tools currently equipped to surface those trends.
This timely discussion made one thing clear: cash flow data is not just a supplement to credit scoring; it's the future of more innovative, more inclusive lending. Click here to listen to the full conversation.
Interested in learning more?
Contact our team to discover how Yodlee's cash flow analytics can help your institution make smarter, faster, and more equitable credit decisions.
