10 Brutal truths about bank data every lender needs to hear

Credit reports aren’t enough these days. Borrowers use cash apps, BNPL, and sometimes hide debts, all of which the credit bureau can’t see. Bank data gives a real-time view of how people actually manage their money, but most lenders still treat it as an afterthought.

At a recent fireside chat hosted by GDS Link, Jonathan Klingler, Head of Credit Risk Advisory, and Ruben Izmailyan, CEO of Quilt, shared real insights about transactional data. They focused on practical lessons learned from working in the industry, not on buzzwords or theory.

Here are ten truths that hit home.

1. Bank data tells you the story. Not just the score.
   “Credit reports give you structure. Bank data gives you the story,” Klingler said. It shows when someone gets paid, how fast they spend it, what they prioritize, and when they’re likely to fall behind.
2. Thin file? No problem. Just look at their cash.
   Lenders struggling to score Gen Z borrowers, recent immigrants, or people who avoid credit cards are using transaction data to fill the gap. “This expands the universe of potential borrowers,” said Izmailyan.
3. Risk modeling is shifting, and the bureaus know it.
   Aggregators are already building risk scores on cash flow behavior. “Credit scores are antiquated,” Klingler said. “Anything that gives you a better look at someone’s risk is a win.”
4. You’re leaving approvals on the table if you ignore second-look use cases.
   If your model says no but their bank data tells a different story, you’re letting good borrowers slip through your fingers. Lenders are using transaction data to catch the ones credit reports overlook.
5. People are managing more debt than you can see.
   BNPL, Cash App, digital loans, none of it lands on the bureau’s radar, but it hits their bank account like clockwork. If you’re not tracking it, you’re flying blind.
6. Regulation is a mess. Use the data anyway.
   “It’s chaos,” Izmailyan said about Rule 1033. But that shouldn’t stop lenders. “Ignore the noise. The value of cash flow data isn’t going anywhere.”
7. If you want ongoing access, give borrowers something in return.
   Better loan offers alone won’t cut it. Izmailyan suggests giving real value: bill reminders, smart alerts, or insights that make a difference. “They’ll opt in if they get something real.”
8. This is your chance to build loyalty, if you don’t screw it up.
   “Just because you know someone is stretched doesn’t mean you should take advantage,” Klingler said. Offer better rates. Help them consolidate. Use the data to help, not exploit.
9. The tech still isn’t great, but it’s getting better.
   “Even if you trust the lender, the login process feels clunky,” said Nathan George, partnership manager at GDS Link. It’s a UX problem, not a data problem. However, the companies that solve it will win faster.
10. You don’t need a full model to start. Just start.
    “Turn it on for your manual review process,” Klingler said. “Your ops team can use the data today while your strategy team builds for tomorrow.”

Ready for the full playbook?

These ten truths are straight from the Fireside Chat: Rethinking Bank Data from the Ground Up. It’s a raw look at how lenders are using bank data, what’s in their way, and where the future leads.

Watch session here: