Case Study: Petal achieves 30% reduction in portfolio risk with Plaid

Lowering portfolio risk with cash flow data

Petal, a fintech credit startup focused on bringing credit to people new to credit, needed a secure way for applicants to share banking data so it could perform cash flow underwriting and broaden access. Petal turned to Plaid, using Plaid’s secure bank connections (e.g., Auth and Transactions) to let applicants link their financial accounts during the application process.

With Plaid, applicants connect accounts and Petal feeds real-time cash flow data into its proprietary underwriting algorithms; about 35% of recent approvals used this approach and 66% of members approved in the past year have connected an account via Plaid. Petal reports that Plaid-enabled cash flow underwriting produced 30% lower current-to-late roll rates versus credit bureau-only underwriting, reducing portfolio risk and improving member outcomes.

Petal

Roy Simkhay

VP Product