Cash flow underwriting represents a fundamental shift in credit decisioning, offering lenders a dynamic lens through which to assess creditworthiness. Traditional credit evaluation methods, while historically reliable, struggle to capture the complete financial picture of modern consumers, particularly given the rise of nontraditional income sources and alternative credit products.
This report examines how cash flow underwriting is transforming lending practices in consumer lending and analyzes key drivers behind growing adoption, regulatory implications, and implementation challenges. Drawing on extensive research, including a Datos Insights survey of 434 global consumer lending institutions conducted in early 2024, the analysis explores how financial institutions can leverage cash flow data to enhance credit decisioning and expand financial inclusion.
Clients of Datos Insights’ Retail Banking & Payments service can download this report.
This report mentions Consumer Financial Protection Bureau (CFPB), Experian, Financial Data Exchange (FDX), H&R Block Inc., Harris Poll, MoneyLion, OneMain Financial, Oportun, Plaid Inc., Rocket Companies, and Upstart.
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