"Plaid, a fintech company that links bank accounts with financial apps, has a lot of visibility into how its customers move cash between bank accounts, payments apps, investment platforms and just about everything else. Plaid's technology runs under the hood across a huge network of 12,000 financial institutions that partner with the fintech startup, which has grown into a key part of the web's financial infrastructure since its founding in 2013."
"All of those connections make Plaid a no-brainer as a partner for Fair Isaac Corp. (FICO), creator of the gold standard credit score used by most lenders. By partnering with Plaid, FICO will be able to offer a historical picture of "money flowing into and out of a consumer's transaction accounts" through Plaid's network of finance data, which consumers opt into through their accounts."
FICO is partnering with Plaid to supply lenders with real-time and historical bank account cash-flow data. Plaid connects to about 12,000 financial institutions and tracks transfers among bank accounts, payment apps, and investment platforms. Consumers opt into sharing their transaction-account data through Plaid. The integration allows FICO to incorporate money flowing into and out of accounts into credit evaluations. The approach aims to broaden lending assessment beyond traditional payment-history-focused credit scores and to improve access to loans for people with strong savings but limited credit histories. FICO frames the move as enabling more comprehensive, responsible, and inclusive lending decisions.
Read at Fast Company
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