The Creation of CashScore v4: Raising the bar for cash flow underwriting

Prism Data recently revealed CashScore v4, a new and more powerful version of the market-leading cash flow underwriting score.

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To our knowledge, CashScore v4 is the most predictive general-purpose cash flow score available today. Testing on a wide array of third-party portfolios has shown CashScore v4 to be generally more predictive than traditional credit scores on its own, and significantly complementary to traditional credit scores when used in a combined solution:

• The addition of CashScore v4 provides an average of 30% predictive lift over a traditional credit score
• When compared to CashScore v3, a lender adopting v4 can increase the number of loans they approve by up to 28% without increasing risk, or reduce the number of defaults in their portfolio by up to 16% while approving the same number of loans

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In this whitepaper, we provide a look behind the curtain into how exactly CashScore v4 was created, including foundational topics such as:

• How the underlying data was collected and selected
• The steps Prism took in data processing and categorization
• The approach we took to create and select features
• Our process for training and testing the model 
• Implementation, review, and compliance approval 

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Get the full report →

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