Cash-flow based credit scoring
Credit scoring that assesses borrower risk using actual money movement in bank accounts rather than historical bureau data. It reflects current repayment capacity in near real time.
Traditional credit scores rely on past loan performance and static financial statements, which lag reality by months or years. Cash-flow based scoring ingests transaction-level data from bank statements or open-banking feeds, categorizes inflows and outflows, and extracts KPIs like recurring revenue, debt-service coverage, volatility, and seasonality. The result is a forward-looking view of creditworthiness that can be used for Consumers, SMEs and thin-file borrowers where bureau data is sparse or outdated. Banks use it for origination, monitoring, and early warning.