Prism Data Gains $5M Seed Funding

Prism Data, a US-based open banking company that branched off from Petal earlier this year, has received $5 million in seed funding. This development comes shortly after the Consumer Financial Protection Bureau (CFPB) proposed an open banking initiative in the US.

The Funding Round

The funding round was headed by Obvious Ventures, with additional participation from the Citi Impact Fund and Core Innovation Capital.

Prism Data’s Offerings

Established by credit card company Petal in 2021, Prism Data provides a selection of products, such as its proprietary CashScore. These tools allow financial institutions, fintechs, and other businesses to leverage open banking analytics and cash flow underwriting to glean insights from consumer-permissioned deposit account transaction data.

Clients of Prism can use the data to predict credit default risk, score missing or thin-file customers, detect first-party fraud, and effectively manage credit risk within their current portfolios.

Rising Demand for Prism Data’s Technology

Prism Data reports that the increasing number of credit card and loan delinquencies is contributing to a surge in demand for its technology, which is expected to rise following the new CFPB plan. Since its formation, Prism has secured more than 20 clients and partners and executed over two dozen successful pilots.

Jason Rosen, CEO of Prism, notes that open banking provides new opportunities for assessing creditworthiness. He adds that Prism’s infrastructure turns this potential into a reality by providing clients with the analytical edge needed to enhance their businesses and better cater to consumers.

New Hire at Prism Data

In related news, the company has appointed Ben Donahue as a senior sales executive. Donahue’s past experience includes serving as the head of sales for Nova Credit and, more recently, as the vice-president of sales for Atom Finance.