Should You Chase Cash Flow Underwriting? Pun Intended!

Chase just announced they’re going to be partnering with a new provider to help them do analysis and cash flow underwriting, in addition to and as a supplement to traditional underwriting. Partly for international folks moving to the U.S., but also as just an enhancement to the overlay of underwriting.

So I think one of the questions I have, and we need to look at, is the fintechs have been doing this for a while with varying degrees of success in terms of how their losses line up with everyone else.

Some have done it as an alternative completely to FICO. I think what Chase is looking to do is add it as a supplement.

I think that’s a really interesting approach that we should be thinking about, which is, what are the additional underwriting criteria that we should be looking at to overlay to help make decisions around these credit approvals and loan applications?

It’s getting more and more competitive out there, and the ability to lend into a different, nuanced population is going to be critical. Cash flow underwriting might be one of those opportunities.

So let me know in the comments what you’re doing around other alternative lending criteria, cash flow, deposit balances, things like that.