PLAID LAUNCHES CREDIT, FRAUD AND PAYMENT RISK AI MODELS

Summary from the TLDR Fintech newsletter

Open finance fintech Plaid has unveiled AI models designed to help financial firms make better lending decisions, catch more fraud, and reduce payment risk. Plaid notes that millions of US adults fall outside of the traditional credit lens, making them difficult to evaluate with traditional scores alone. To help with this, the firm is tapping into cash flow data, which shows how people earn, spend, and pay their bills, giving lenders a fuller picture of their ability to repay.