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Core Products & Services
Cashflow Analytics Real-time analysis of income, expenses, and liabilities to help risk teams assess affordability, reduce risk, and make faster, smarter lending decisions.
Cashflow Attributes Pre-built indicators of cashflow trends and signals derived from real-time bank transaction data. Organized into four categories—Stability, Affordability, Assets, and Willingness—these 10,000+ attributes are designed to power underwriting models and improve decision quality.
Cashflow Scores Scoring models trained on real-time bank transaction data and millions of loan performance records. These scores predict whether a borrower will make their first few payments on a specific credit product, providing a precise view of near-term repayment risk.
Cashflow Analytics in Snowflake Seamless integration of Pave’s analytics into Snowflake via standardized, daily-refreshed tables—ready for immediate use without complex ETL processes. Enables fast, scalable access to key cashflow analytics.
Scoring Models
Predicts the likelihood and ability to repay a cash advance based on real-time bank transaction data and usage behavior. Trained on labeled repayment outcomes from cash advance providers.
Personal Loan Score
Predicts the likelihood of a borrower making their first four personal loan payments. Trained on loan performance data across personal lenders to help reduce delinquencies and improve early-payment risk assessment.
Small Dollar Loan Score
Predicts the probability of a borrower making their first four payments on a small dollar loan (<$5,000), tailored for short-term lending. Trained on real-time bank transaction data and repayment outcomes across short-term lenders.
SMB Charge Card Score
Predicts the likelihood that a small or medium-sized business will repay their charge card balance. Trained on real-time cashflow signals and historical charge card performance from SMB lenders.
Fuel Charge Card Score
Predicts the likelihood that a business will be 30 days past due on their fuel charge card. Trained on transaction-level spending behavior and repayment performance from fleet and fuel card providers.
ACH Risk Score
Predicts the likelihood that a specific ACH debit will clear successfully on a given date. Trained on millions of labeled ACH transaction outcomes tied to real-time account balances and activity.
Key Concepts & Methodologies
Income Prediction Model Identifies paycheck deposits from bank transactions and predicts the exact date of the user’s next income with over 90% accuracy. This enables lenders to align repayment schedules with income timing.
Product-Specific Probability Scores Scoring models tailored to individual credit products (e.g., small dollar loans, charge cards, cash advances), trained to predict the likelihood of near-term repayment events—such as making the first, second, third, or fourth payment. These scores provide better risk separation and more actionable insights than general-purpose credit scores.
Real-Time Risk Assessment Continuous monitoring of borrower financial health using real-time transaction data, enabling dynamic line assignment, proactive risk management, and early intervention.
Cashflow-Driven Underwriting Lending approach that evaluates borrowers using real-time financial data such as payroll deposits, recurring expenses, and liability payments, rather than relying solely on traditional credit scores.
Attribute Categories
Stability Attributes Signals of consistent income and employment patterns that indicate steady financial behavior over time.
Affordability Attributes Metrics that assess a borrower’s ability to take on debt based on income and expenses—helping avoid overextension.
Asset Attributes Indicators of asset ownership or major purchases (e.g., mortgage, auto), offering a buffer or potential collateral.
Willingness Attributes Behavioral signals like on-time payments and low NSFs that reflect intent and reliability in repaying debt.
Use Cases & Applications
Credit Limit Optimization Dynamic adjustment of credit limits based on real-time affordability assessments and cashflow health.
Ongoing Monitoring Continuous tracking of income stability, spending, and financial health to adjust loan amounts, graduate users, and proactively mitigate risks before they impact your portfolio.
Payment Schedule Alignment Matching loan payment dates with borrowers' income patterns to reduce NSFs and improve repayment success.
Pre-Delinquency Detection Early identification of risky behaviors such as falling behind on payments, loan stacking, or frequent chargebacks.
Underserved Borrower Identification Finding creditworthy individuals overlooked by traditional scores but showing high likelihood to repay based on their cashflow patterns.
Graduation Programs Moving customers from secured to unsecured credit products based on demonstrated financial improvement and affordability.
Improve accuracy in risk models Enhancement of proprietary models using Cashflow Attributes and Scores to better assess affordability and expand reach.
Application Data Verification Validation of self-reported data by comparing against transaction data—detecting actual income sources and predicting future earnings to confirm affordability. Real-time insights help flag discrepancies or potential fraud before funding.
Industry Terms
Cashflow Underwriting A method of assessing borrower risk based on real-time income and spending.
Transaction Enrichment The process of cleaning and labeling raw bank transaction data with metadata like merchant, category, and recurrence patterns.
NSF (Non-Sufficient Funds) A failed or returned payment attempt due to insufficient account balance, resulting in NSF fees.
Loan Stacking Taking multiple loans from different lenders at once, often indicating financial distress.
Champion-Challenger Testing A model validation approach where existing models (champion) are tested against new models (challenger) to determine performance improvements.
AUC (Area Under the Curve) A metric measuring the performance of classification models, with values ranging from 0.5 (random) to 1.0 (perfect prediction).
Open Banking A framework that allows borrowers to securely share their financial data with third-party providers through APIs, enabling personalized financial services.
BNPL (Buy Now, Pay Later) Short-term financing that allows consumers to make purchases and pay for them over time in installments.
Gig Economy Workers Independent contractors and freelancers whose income patterns may be irregular but can demonstrate financial stability through cashflow analysis.
Thin-File Consumers Individuals with limited traditional credit history, often including young people, immigrants, and those who primarily use cash or debit.
Technical Integration
API (Application Programming Interface) Technology that allows different software systems to communicate, enabling real-time data sharing and integration.
Webhook System Real-time notification system that provides live updates for immediate decision-making based on the latest data.
Snowflake Secure Share A feature of Snowflake that enables seamless, permissioned data sharing between organizations without moving or copying data.
ETL (Extract, Transform, Load) Traditional data processing method that Pave's Snowflake integration eliminates through pre-standardized tables.
Data Aggregators Third-party services that collect financial data from multiple sources (banks, credit unions) to provide comprehensive financial profiles based on transaction, balance, and identity data via APIs.
Latency The delay between a request and response in data transmission, critical in real-time cashflow analytics.
Risk Management
Portfolio Risk Monitoring Continuous assessment of loan portfolio health using real-time cashflow data to identify trends and risks.
Default Prediction Forecasting the likelihood of loan default using cashflow patterns and behavioral indicators.
Fair Lending Compliance Ensuring lending practices don't discriminate against protected classes, with cashflow data helping provide more equitable assessments.
Income Verification Validating borrower income through analysis of deposit patterns and transaction history rather than relying solely on stated income.
Performance Metrics
Approval Rate Lift Increase in loan approvals achieved through more accurate risk assessment and identification of creditworthy borrowers.
Default Rate Reduction Decrease in loan defaults resulting from improved risk prediction and borrower selection.
Revenue Per User Increased profitability through optimized loan amounts and reduced losses from improved risk assessment.
Operational Efficiency Reduction in manual underwriting processes through automated cashflow analysis and decision-making.
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