Yodlee has announced the formation of Yodlee Credit, LLC, a subsidiary that will operate as a Consumer Reporting Agency under the Fair Credit Reporting Act. The move allows the company to formally handle consumer credit data and provide financial institutions with alternative insights for credit assessments.
According to representatives from Yodlee, the new division will enable lenders to integrate consumer cashflow data into their credit models. This approach is intended to complement traditional credit information by offering a broader understanding of an individual’s financial circumstances.
Supporting cashflow-based credit analysis
Yodlee officials explained that the CRA designation reflects the company’s continued focus on strengthening credit decisioning frameworks and promoting more inclusive financial practices. They noted that using cashflow data, such as income consistency, spending habits, and bill payments, offers lenders a clearer picture of an applicant’s ability to manage debt responsibly.
According to the official press release, traditional credit reporting systems have long been criticised for overlooking consumers with limited or no credit history. By incorporating transaction-level financial data, Yodlee Credit aims to help lenders identify creditworthy borrowers who might otherwise be excluded from conventional scoring models.
The company said its data aggregation tools can assist financial institutions in evaluating repayment capacity and risk more effectively. Officials added that these insights could help lenders meet regulatory expectations for fair lending while broadening access to credit among underserved groups.
Yodlee Credit’s operations are supported by the parent company’s existing Open Banking platform and consumer-permissioned data framework. The company said this infrastructure ensures compliance and transparency as it expands into regulated credit reporting activities. Representatives emphasised that the initiative builds on Yodlee’s long-term collaboration with banks and fintechs seeking to modernise credit evaluation through richer data sets.
