In this special episode recorded live at Money2020 in Las Vegas, we dive deep into what I think is the most transformative development in lending over the past decade: cash flow underwriting. I welcome back to the show Jason Rosen, CEO and co-founder of Prism Data (I last had Jason on the show back in 2019 when he was with Petal), to explore how real-time bank account data is revolutionizing credit assessment in ways that traditional credit scores simply can't match.

Jason explains why the financial disruptions of 2020, from pandemic relief to widespread job changes, exposed critical gaps in conventional credit reporting, and how cash flow underwriting is filling that void. The conversation covers the breakthrough adoption of this technology by major traditional banks, the limitations of FICO scores in capturing a complete financial picture, and why cash flow underwriting represents a once-in-a-century shift in how creditworthiness is measured.

In this podcast you will learn:

• How Jason first got interested in cash flow underwriting.
• The origin story of Prism Data and how it was incubated inside Petal.
• How he describes Prism Data today.
• What goes into building their unique credit models.
• How their CashScore is created.
• What matters most in how they distill all the semi-structured data into a score.
• Why credit decisions are more intuitive when being made with cash flow underwriting.
• The lending categories where they are seeing the most rapid adoption.
• How smaller financial institutions can avoid being left behind.
• Jason’s view on why traditional credit models have become less predictive.
• How lenders are using cash flow underwriting in their application flow.
• How the friction in connecting a bank account is being reduced rapidly.
• The impact of the Chase-Plaid deal on cash flow underwriting.
• What sets Prism Data apart from the others in the cash flow underwriting space.

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