The power of cash flow underwriting with instant onboarding: Introducing Layer and Consumer Report

Alain Meier
Head of Identity, Plaid

Alain spent his career building identity and anti-fraud products. Now he’s on a path to lower fraud at scale for the digital finance ecosystem.

For over a century, lenders have relied on credit reports, but their lack of real-time details like verified income and expenses has made it difficult to get a full picture of a borrowers’ finances. While cash flow data can bridge this gap, lenders are often hesitant to add additional friction to the loan application experience. 

We’re changing this. By combining the power of Plaid Layer, our instant financial onboarding platform, with Consumer Report, our cash flow data solution powered by our consumer reporting agency, we’re making it easy for lenders to evaluate cash flow data alongside traditional credit data. This combination enables borrowers to instantly link their financial accounts and provide their income, expenses, and bank account balances directly to lenders right at the beginning of the application process. For lenders, this means access to a more holistic picture of their applicants’ financial situation to make more confident lending decisions. 

Enhancing digital pre-qualification with cash flow data via MoneyLion

MoneyLion, a leading digital financial ecosystem, with its Engine marketplace platform for Enterprise partners, is our first customer taking advantage of our new solution by making instant onboarding and cash flow underwriting available across its 17 million users, and beyond. MoneyLion’s marketplace platform is a two-sided network of over 1,200 partners, designed to match consumers with personalized financial solutions based on their unique needs. This platform simultaneously drives customer acquisition for product providers and monetization opportunities for distribution channel partners. With this new solution, MoneyLion can now integrate real-time cash flow data directly into the loan application and pre-qualification journey. Consumers using MoneyLion can link and permission their bank accounts and get pre-qualified for loans in just a few clicks. 

Lenders like Integra Credit will benefit from accessing cash flow insights in MoneyLion’s hosted decisioning platform and through their existing pre-qualification integrations. By using Consumer Report, lenders can expand their reach to underserved borrowers, including those with thin credit files or no credit history who have been historically overlooked by traditional credit reports 

We’re excited to work with MoneyLion to reshape loan marketplaces, improving the experience for both consumers and lenders. For consumers, this means more control over their financial outcomes and the ability to showcase their full financial picture to lenders. For lenders, this means more informed decision-making and more opportunities to approve qualified borrowers who might otherwise have been overlooked.

“At MoneyLion, our mission has always been to empower consumers with the tools and resources they need to make informed financial decisions. By partnering with Plaid, we’re advancing that mission by integrating real-time cash flow data into our hosted decisioning engine and credit marketplace, streamlining access to credit and enabling smarter, data-driven lending decisioning. This collaboration enhances the overall borrowing experience and, expanding financial access for underserved consumers, ensures more people can access the financial products that best meet their needs." - Tim Hong, Chief Product Officer, MoneyLion

Decision with cash flow data alongside bureau data from the start 

This first-of-its-kind experience is powered by Layer, our instant onboarding platform that streamlines bank linking and helps accelerate onboarding for the tens of millions of people who have saved their information with Plaid. Since the launch of Layer, early customers have seen conversion rates increase on average of 17.5%, a massive lift in a world where conversion rates are often measured in basis points. Combining Layer with Consumer Report, we’re bringing cash flow data into the earliest part of the consumer loan journey, enabling consumers to tell their full financial story and lenders to make confident lending decisions from the very start. 

One small step for applicants, one giant leap for cash flow data access

With this new solution, we’re addressing one of the top concerns we’ve heard over and over from lenders who are considering cash flow underwriting. This first-of-its-kind experience enables you to offer a seamless loan application experience while getting the data and insights you need to make informed decisions. If you’re a lender considering cash flow underwriting but worried about adding more friction, this is the solution for you. Click here to learn more about Consumer Report and the MoneyLion network.

On October 17, we're hosting a Tech Talk with MoneyLion to learn about how they're building a financial marketplace that better meets today's consumer needs.