Fintech Revealed: Cash Flow Underwriting with Kevin Moss and Alex Johnson

Welcome to a new occasional series we are doing on the podcast called Fintech Revealed. This is where we take a deep dive into one specific topic with a couple of industry experts.

In our first episode we are focused on one of my favorite topics: cash flow underwriting. I invited two of the leading credit experts, Kevin Moss and Alex Johnson, to provide a well-rounded discussion on this topic highlighting both the benefits and challenges of cash flow underwriting. We covered so much territory in this conversation, so whether you are curious about cash flow underwriting or are a seasoned veteran, I am confident you will learn a great deal.

This episode was sponsored by Prism Data, the modern cash flow underwriting solution.

In this podcast you will learn:

• What cash flow underwriting is exactly.
• Why cash flow underwriting is not captured in the FICO score.
• How Kevin was using transaction data at Wells Fargo in the early 2000s.
• What has happened that has accelerated the use of cash flow data in underwriting.
• Why banks haven't moved more quickly to implement cash flow underwriting.
• How subprime and prime consumers have been segregated in the current credit system.
• How cash flow data is different from alternative data.
• Why cash flow underwriting gets us back to the traditional way we used to be approved for credit.
• The real mission of cash flow underwriting.
• How well cash flow data predicts default risk and where it has the most value.
• What tokenization for connecting bank accounts will look like for borrowers.
• How streamlining the authorization process will supercharge cash flow underwriting.
• The types of lenders and products that are using cash flow underwriting today.
• The most promising use case for cash flow underwriting.
• How it can help the mortgage lending process.
• Kevin's view on how cash flow underwriting will replace debt-to-income.
• Why regulators such as the CFPB like cash flow underwriting so much.
• How cash flow data creates a lending market with more fairness.

Connect with Fintech One-on-One:

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• Find previous Fintech One-on-One episodes