Credit & Underwriting

Overview

Our Credit & Underwriting suite is designed to provide next-generation underwriting tools that go beyond traditional credit scoring. By leveraging Monte Carlo simulation and cash flow analysis, these products are designed to enable lenders to make more accurate credit decisions based on projected repayment capacity rather than backward-looking credit bureau data alone.

See tomorrow’s cash flow today. Our forward-looking underwriting models project borrower repayment capacity using Monte Carlo simulation, giving you probabilistic insights, not just point-in-time scores.

Products in This Category

Cash Flow at Risk Models

Cash flow at risk models for projecting business and consumer cash flows to support underwriting decisions.

Key Capabilities:

• Monte Carlo simulation engine for probabilistic projections
• Cash flow projection modeling with confidence intervals
• Risk-adjusted credit scoring that incorporates volatility
• Scenario-based stress testing for adverse conditions
• Probability of default curves over time
• Integration with existing underwriting workflows

Why It Matters: Traditional credit scores tell you where borrowers have been. Our Monte Carlo-powered models show you where they’re going, with confidence intervals, not guesswork.

SMB Underwriting Models

Small and medium business underwriting model with modular components for comprehensive cash flow analysis.

Key Capabilities:

• New customer growth modeling with uncertainty
• Customer retention analysis and churn projection
• Marketing/sales spend to revenue relationship modeling
• Accounts receivable conversion and aging assumptions
• Payment schedule modeling and optimization
• Debt rollover probability assessment

Why It Matters: SMB lending requires understanding business dynamics, not just historical financials. Our modular approach captures the key drivers of business cash flow.

Consumer Underwriting Models

Consumer cash flow underwriting model for personal lending decisions based on transaction-level analysis.

Key Capabilities:

• Income stability analysis with volatility metrics
• Expense categorization and forecasting
• Cash flow volatility assessment and scoring
• Repayment capacity modeling under stress
• Bank transaction pattern analysis
• Integration with open banking data sources

Why It Matters: Go beyond FICO. Our consumer models use actual cash flow patterns to assess repayment capacity, especially valuable for thin-file borrowers.

The Monte Carlo Advantage

Traditional underwriting relies on point estimates. What’s the borrower’s income? What are their expenses? This approach misses the crucial dimension of uncertainty.

Our Monte Carlo simulation approach models the full distribution of possible outcomes:

• Probabilistic Projections - Not just “what’s the expected cash flow” but “what’s the range of possible outcomes”
• Tail Risk Assessment - Understand the probability of severe adverse scenarios
• Confidence Intervals - Know how confident you should be in any given projection
• Scenario Analysis - See how different economic conditions affect repayment capacity

Complementing vs. Replacing Traditional Scores

Our models work both ways:

Complementing FICO: Use our cash flow analysis alongside traditional scores for a fuller borrower picture. Especially valuable for near-prime borrowers where cash flow stability matters.

Replacing Score-Based Underwriting: In appropriate segments, our forward-looking approach can replace traditional scoring entirely. Particularly effective for:

• Thin-file borrowers with limited credit history
• Self-employed and gig economy workers
• Small business owners
• Recent immigrants or credit rebuilders

Why DataFrame Labs for Credit & Underwriting

Forward-Looking Focus

Most credit models look backward. Ours project forward. We model future repayment capacity, not just past payment history.

Transparency

No black boxes. Our models are explainable. Know exactly why a borrower qualifies and explain it to them, regulators, and auditors.

Modular Architecture

Customize components for your specific lending use case. Adjust assumptions, add factors, and tailor models to your portfolio.

Probabilistic Rigor

Monte Carlo simulation provides genuine uncertainty quantification. Make decisions with a clear understanding of the confidence level.

Delivery Options

• API Integration - Real-time scoring and cash flow projections for lending platforms
• Batch Processing - Portfolio-level analysis and model monitoring
• Interactive Tools - Explore individual borrower projections and scenarios
• Model Documentation - Complete methodology for regulatory and audit review