Prism Data raises $20M to expand cash-flow underwriting
Prism Data's Series A will expand its cash-flow underwriting products and AI-powered transaction categorisation.
What happened
Prism Data raised a $20 million Series A led by Story Ventures, with FINTOP, Core VC, Obvious Ventures, 1st & Main Growth Partners and Mana Ventures participating. It also introduced REFRACT, an AI-powered engine for categorising bank transactions.
Why it matters
Cash-flow underwriting uses account activity to assess income, spending and repayment capacity. It may help lenders evaluate applicants whose conventional credit files provide an incomplete picture.
The bigger picture
Better data classification does not automatically produce fairer or more accurate lending decisions. Reported growth and accuracy gains are company claims, and lenders still need governance, explainability and fair-lending testing.