Plaid adds cash flow credit models and a new fraud foundation model
Plaid is adding new AI models to its network, aiming to help financial firms with decisions across credit, fraud and payments. LendScore 2 uses cash flow underwriting and predicts a borrower's ability to repay a loan with 42% greater strength than traditional credit data alone, while LendScore Arc is a transformer-based model that learns from the order and timing of a borrower's transactions. Plaid also announced a foundation model purpose-built for fraud, trained on patterns from the Plaid Network.
NoteLenders who plug into Plaid's cash flow models get a tool for borrowers who fall outside a traditional credit score, a group agentic underwriting keeps widening as more of a borrower's transaction history becomes machine-readable.
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