FairPlay's Assessment Shows Prism Data's CashScore Enhances Credit Signal and Financial Inclusion
FairPlay, an AI enablement company for the financial services industry, has released findings from its independent fairness assessment of Prism Data’s CashScore®. The study evaluated whether CashScore, a cash flow underwriting score that uses real-time deposit transaction data to predict risk independently of credit scores, operates fairly and without bias. The analysis found no significant correlations between CashScore and protected status categories, indicating it does not function as an indirect proxy for such attributes. Additionally, there were no statistically significant differences in lending outcomes across protected class consumers compared to non-protected classes when using the score. The study also confirmed that all groups had equal access to sufficient data needed to generate a CashScore. Prism Data and FairPlay both emphasized the importance of expanding financial inclusion without introducing or exacerbating disparities, noting that cash flow underwriting provides lenders with more comprehensive insights into borrower behavior than traditional credit assessments alone.
Topics: AI cash_flow_underwriting credit_scoring regulatory_compliance