Lenders now can use EDGE lead screening to evaluate lead purchases with rich bank transaction data
This innovative new product will enable lenders to save considerable marketing spend, without requiring borrowers to log in to their bank account.
September 11, 2024, Chicago, IL. EDGE, the leading cashflow consumer reporting agency (CRA), released a new customer acquisition solution that enables lenders to screen leads using rich bank transaction data, prior to purchase.
In addition to not requiring the consumer to enter their credentials for bank access and thus removing a major friction point, the EDGE solution also meaningfully improves the ability to filter leads that are more suitable for a particular lending product, ultimately matching lenders and borrowers more accurately. For leads with thin or no credit history, EDGE can now provide valuable insight for what has historically been a blind spot with traditional credit bureau data alone.
EDGE lead screening will help lenders get the most out of their marketing dollars by filtering leads using data such as recent inquiries, verified income, signals of potential fraud, and risk indicators including EDGE Score™ ‒ the only risk assessment tool on the market powered by cash flow data, fine-tuned by machine learning and proven against loan performance at scale. This improved visibility into leads’ creditworthiness and ability to repay increases conversion rates and drives down overall customer acquisition costs.
“In the past, non-credentialled products provided only surface-level intelligence and had limited value for lead buying,” said Brian Reshefsky, CEO of EDGE. “With EDGE lead screening, lenders can now leverage deep insights at the top of the funnel for a reasonable price and without wasted dollars spent on leads that won’t eventually convert to profitable loans.”
How EDGE Lead Screening Works
EDGE provides access to consumer-permissioned data from applicants that have previously credentialled with EDGE in the open banking ecosystem. Use cases include:
- Recency Check: At no cost, lenders can check if leads have been recently credentialled for bank account access through EDGE. If matched, the lender will be provided with the date of the latest account access, helping the lender evaluate whether to purchase the lead.
- Screen on Ability to Pay and Credit Risk: If EDGE has a consumer report on file, lenders can purchase the ranges of previously verified income and EDGE Score.
- Credit Decision: Lenders can purchase a full consumer report from a prior open banking connection through EDGE to enhance their credit risk decisioning, again without the need to re-credential. This report includes complete underwriting data such as income streams, our industry-leading EDGE Score, and EDGE’s full suite of risk attributes.
About EDGE
EDGE helps lenders automate operations and enhance decision-making with cash flow data and machine-learning developed risk insights. As a consumer reporting agency (CRA) built around cash flow data, we unlock a more complete picture of consumers’ financial health in real time than traditional credit bureaus can provide.
EDGE enables lenders to approve applicants overlooked by traditional credit bureaus including such no-hit and thin-file applicants as recent immigrants, young adults, and other unserved or underserved populations. Our risk attributes and EDGE Score™ are the only cash flow risk-assessment tools proven through profitable loan performance at scale. Built by lenders for lenders, they are designed for immediate actionability in consumer credit underwriting decisions.
In addition, EDGE provides lenders post-origination cash flow insights such as borrowers’ ability to meet future payment obligations. This enables lenders to better personalize payment schedules and avoid failed ACH transfers.
www.edgescore.com