Prism Data secured $20 million in Series A funding to help lenders assess borrower risk using bank transaction data.
Key points
- Prism Data raised $20 million in Series A funding.
- Story Ventures led the investment round.
- The company provides credit-scoring data and analytics.
Prism Data has secured $20 million in Series A funding. The investment is led by Story Ventures.
What happened
Prism Data announced it raised $20 million in a Series A funding round. According to Axios, the round was led by Story Ventures. Prism Data CEO Jason Rosen confirmed the deal in an exclusive interview. The company provides credit-scoring data and analytics that help lenders assess borrowers. Prism Data uses bank transaction data to help lenders assess credit risk.
Why it matters
Prism Data uses bank transaction data to help lenders assess credit risk. This approach allows lenders to evaluate borrowers who may not have traditional credit histories. By analyzing actual spending and income patterns, lenders can make more informed decisions. This method expands access to credit for individuals with thin files. It shifts the focus from historical credit scores to current financial behavior.
The fix
- Monitor your bank statements for unauthorized transactions.
- Review your credit reports regularly for accuracy.
- Enable transaction alerts on your banking apps.
- Use strong, unique passwords for financial accounts.
Why it matters
Lenders often rely on traditional credit scores to assess risk. These scores may not reflect the full financial picture of all borrowers. Alternative data sources, like bank transactions, provide a more current view. This helps lenders identify reliable borrowers who might otherwise be overlooked. It also encourages greater financial inclusion across diverse populations. Teams usually evaluate data quality and privacy compliance when adopting new sources.
What to do and how to stay safe: Prism Data
- Check your bank statements monthly for unfamiliar charges.
- Set up real-time alerts for large or unusual transactions.
- Review your credit reports annually for errors or fraud.
- Ensure your banking apps use strong authentication methods.
Step-by-step guide: What is password policies and how they protect systems
General security guidance from the Crypt Weekly newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
How much funding did Prism Data raise?
Prism Data raised $20 million in Series A funding.
Which venture firm led the investment?
Story Ventures led the Series A funding round for Prism Data.
What data does Prism Data use for credit scoring?
Prism Data uses bank transaction data to assess borrower risk.
