BNPL – Borrowing No Different
January 18, 2023 | NinjaEdge Insights
With the leading data lake combining bank transactions and loan performance, NinjaEdge has unique insight into the impact of BNPL on other forms of credit. Our findings indicate that borrowers exhibit behaviors similar to what lenders have seen across other credit products for decades: loan stacking, financial stress correlated with more borrowing, and higher default risk with incremental obligations.
BNPL Liabilities – Hidden in Plain Sight
December 12, 2022 | NinjaEdge Insights
Buy Now Pay Later plans are frequently in the headlines for opportunities and risks alike. BNPL obligations pose a challenge for other lenders because they are largely unreported to credit bureaus. However, these liabilities can be reliably found in bank transaction data – an essential step in decisioning on a complete picture of consumer risk.
Cash Flow Underwriting – Getting to “So What?”
November 17, 2022 | NinjaEdge Insights
As more lenders recognize the disruptive potential in bank transaction data, the focus is shifting to how thousands of datapoints can be distilled into clear risk signals. Data scientists can easily turn a year’s worth of debits and credits into five or ten times as many interesting characteristics and behaviors, but interesting isn’t actionable. For better underwriting decisions, analysis can’t stop with a long menu of insights – it needs to get to a “So what?”
Cash Flow Underwriting – What’s Missing from Your Bureau
October 20, 2022 | NinjaEdge Insights
For almost half the U.S., traditional credit scores fail to accurately or fairly predict risk. Cash flow behaviors seen in checking and savings accounts present a more complete financial picture. When analyzed against robust loan performance data and with the right experience, bank transaction data yields actionable insights that can improve underwriting decisions.
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