EDGE

Yet another example of how traditional credit scores can’t predict someone’s ability to repay a loan:? https://lnkd.in/gQhSye9t Missed payments are undoubtedly a key indicator of willingness to pay. But in this case, many borrowers aren’t defaulting due to financial distress—they’re confused about policy changes or haven’t received clear communication from loan servicers. Over 40% of federal student loan borrowers stopped paying and haven’t started again, so their credit scores are plummeting. From a cashflow underwriting perspective, these peoples’ underlying financial health usually hasn’t changed. At EDGE we observe trends in income, cash balances, EDGE Score, and risk signals like NSF fees. So we can tell that their ability to pay remains intact. This is exactly why lenders need better tools beyond credit files and bureau scores for risk assessment. Cashflow underwriting drives more informed lending decisions that are a win-win: lenders remain competitive and decision more accurately, while borrowers’ true financial health is represented when they’re seeking credit. #creditunderwriting #cashflowunderwriting #creditscore #lending #studentloans #financialinclusion

I'm heading to DC for #GAC and I'm excited to share how credit unions are transforming their operations with cashflow underwriting. For example, Trius Federal Credit Union recently implemented EDGE to automatically verify income, eliminating a great majority of income stipulations and measurably improving look to book. Trius successfully verified income for over 80% of members with a primary account at the credit union and over 60% of all applications. This enormous benefit was available with zero added friction for members. Read the case study here (https://hubs.ly/Q038G9SZ0) and come say hello at?America's Credit Unions?#GAC Corridor Platforms Bjoern Nordmann Aditya Khandekar, CFA

GAC is a great way to kick off a new year surrounded by forward thinking people like Aditya Khandekar, CFA and Bjoern Nordmann! Corridor Platforms and EDGE will both be attending! Come and say "Hello"!

Welcome to the EDGE family Compass Credit Union!

The recent WSJ article is yet another reminder that our reliance on traditional credit scoring is deeply flawed. https://hubs.la/Q037DZ130 It’s shocking that a near-perfect 815 score can drop to the low 600s over a disputed rent bill—without a court ruling or a chance to defend oneself. The stories in this article illustrate just how tenuous traditional credit scores can be and how often they fail to reflect the full reality of someone's financial health. The limitations of traditional credit scores are especially evident for those with thin or no credit files. Millions of Americans including young adults, immigrants, and those who prefer to manage their finances without borrowing, are left without a score simply due to a lack of credit history. This creates a vicious cycle: without credit history, it is difficult to secure loans, rental housing, or even some jobs despite these individuals often being financially responsible. This is why we need a better way. Cashflow underwriting—analyzing bank transaction data to understand income consistency, spending, and savings—offers a clearer, more accurate picture of a person’s financial health. Seeing rent, utilities, and other financial obligations consistently paid month after month tells a far better story than a single negative mark on a credit report. For lenders, landlords, and consumers, cashflow underwriting means: ? More accurate risk assessment ? Fairer access to housing and credit ? Fewer people harmed by inaccurate or predatory reporting practices It’s time to look beyond three-digit scores that haven’t evolved since the 70s. Underwriting models should reflect financial behavior in totality—not just credit utilization and payment history, but the full picture of how people manage their money. What do you think? How can we push the industry toward embracing cashflow data as the norm? #Fairnessinlending #fintech #cashflowanalytics #cashflowunderwriting

I'm excited to announce that I'm attending Fintech Meetup this March! Will I see you there? Let's set up a meeting! https://lnkd.in/g347cvtu #MeetMeAtFINTECHMEETUP Fintech Meetup

Excited to attend Wiring the Rez this year! Looking forward to seeing everyone again in Arizona.?? If you're interested in chatting about instant bank verification or how cash flow data is shaping the future of lending and financial services, let’s connect! Feel free to reach out—see you there! #WiringTheRez #BankVerification #CashFlowData #FutureOfFinance

“Credit unions could more than double their market share if they offered a full suite of curated, personalized solutions” according to a recent Ernst & Young study. Sounds great, but personalization has long been a largely unrealized strategy for CUs. Today, however, with cashflow insights from EDGE, CUs are finally achieving greater personalization in marketing, underwriting, loan servicing, and more. To offer personalized services, you really have to know your members. But many CUs don’t look deeper than members’ FICO or Vantage scores. With EDGE, you now have members’ complete financial picture at your fingertips, such as total income (from traditional and nontraditional employment alike), financial obligations including hidden liabilities (like Buy Now, Pay Later), and more! See who’s living paycheck to paycheck despite a 750+ credit score, and don’t overlook members who might have stubbed their toe with a few missed payments but should perform more like a true 750 because they’ve been saving and spending responsibly. You can all those insights with zero friction for members because EDGE integrates directly to CUs’ cores. EDGE complements your data with consumer-permissioned access to external accounts for any financial institution in the U.S. as well. Armed with that insight, you can write a new chapter of personalization in everything from offers to general outreach. Imagine your next holiday loan campaign where both the amount and APR reflect each member’s ability to pay. Personalization is not just a trend – it’s the only way for CUs to differentiate and thrive in an era when fintechs have you in their sights. CUs that embrace data-driven insights, proactive engagement, and bespoke member care will strengthen their member relationships and earn more wallet share. By staying true to community-based values while integrating innovative personalization strategies, CUs can be an even more trusted financial partner for your members. https://hubs.la/Q036B-z90

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This recent study by Cornerstone Advisors is music to our ears here at EDGE; we’ve been on a mission to solve what Cornerstone identifies as one of the biggest problems facing credit union executives: https://hubs.la/Q035pt_C0. In the study, Cornerstone found that efficiency gains and cost reductions are one of the top concerns of credit union executives – just below member growth. The two issues go hand-in-hand: if CUs don’t have speedy and efficient operations, they’re that much less likely to bring on new members and may lose wallet share to the competition. Meanwhile, over 90% of the same execs say they’re not using data effectively to enhance operational efficiency. That stat is not surprising: Analytics is a tough nut to crack and requires investments in tech as well as in-house resources for data analysis and governance. Small CUs in particular struggle to rise to parity with fintech competitors – and even larger CUs likely won’t have as deep of a data science bench. That’s where EDGE can help. We’ve built direct-to-core integrations so CUs can access and take advantage of their most valuable asset: their own members’ data. We do the heavy lifting for the CU on the analytics side, so they can get at-a-glance insights into their members’ financial health. The first benefit CUs can gain from EDGE is automated income verification. Instead of a highly manual process for both members and CU representatives, CUs use EDGE to view a summary of total income, even for members with non-traditional income streams (like freelancers and gig workers). The insights don’t end there: CUs also use EDGE for full visibility into members’ financial obligations (including BNPL payments not reported to credit bureaus), high-risk balance behaviors (like living paycheck to paycheck), and other insights into members’ financial health beyond what’s found on a credit report. Our platform also delivers data “off us” insights for members and non-members with accounts at another financial institution giving credit unions a full 360-view of their members regardless of where they bank. This opens the door for credit unions by allowing them to offer their members competitive products, in a streamlined and automated fashion like most large banks and fintechs can do today. But don’t take my word for it! Read our case study on income verification here: https://hubs.la/Q035prJB0