#financialdataapi

For example, an excellent credit score does not guarantee that a business will generate the same revenue and will be consistent for its payments in the future. Moreover, it won’t tell if a business has shut down or is struggling with cash flow issues. A new and innovative solution to this increasingly widespread problem is leveraging forward-looking data for determining creditworthiness. 

One of the most robust, accurate, and real-time data sources of information is cash flow predictive data. The perfect blend of accounting, banking, financial, and cash flow data help lenders see the past, present, and future financial health of a business and make data-informed intelligent decisions. 

Today, some futuristic financial technology companies empower non-traditional business lenders to examine borrowers’ banking, financial, accounting, and predictive cash flow data to take note of spending habits and monitor future income and expenses. 

Some advanced lending-tech firms enable lenders to access and analyze these data sets from the click of a button. With the help of artificial intelligence and machine learning, these FinTech firms are creating a single financial data APIs for lenders to collect, review and analyze the most accurate and efficient data of their borrowers. 

By leveraging this valuable data, lenders can accurately predict the future financial health of a business, and ultimately reduce loan bias, provide customized solutions, enhance customer experience, lessen credit risk, determine creditworthiness, and take their business forward. 

In the current lending scenario, non-traditional lenders must adopt new and innovative credit scoring methods for businesses that are unbanked or underbanked. 

Both Forward-Looking and Historical Data are Vital

New credit scoring is an augmentation and not a replacement of traditional credit scoring. Forward-looking data are more numerous and less organized than the data used in traditional credit scores. 

Fortunately, besides historical data, real-time financial data is now available for lenders, and state-of-the-art technologies are helping lenders to access, analyze and normalize this financial data. Using this data, lenders can understand their customers better, create new and innovative financial products, and build better-performing loan portfolios.