Prism Data, the US open banking firm that spun out from Petal earlier this year, has successfully secured $5 million in seed funding.
The funding round, which follows the Consumer Financial Protection Bureau’s recent proposal for open banking in the US, was led by Obvious Ventures, with contributions from the Citi Impact Fund and Core Innovation Capital.
Founded by the credit card company Petal in 2021, Prism Data offers a suite of products, including its proprietary CashScore, that empower financial institutions, fintechs, and other companies to leverage open banking analytics and cash flow underwriting to gain insights from consumer-permissioned transaction data in deposit accounts.
Clients of Prism Data utilize this technology to predict credit default risks, assess missing or thin-file customers, detect first-party fraud, and enhance credit risk management within their existing portfolios. The firm reports that the rising rates of credit card and loan delinquencies are driving an increased demand for its technology, a trend likely to continue in light of the new CFPB plan. Since its launch, Prism has formed partnerships with over 20 clients and successfully executed more than two dozen pilot programs.
“Open banking creates new possibilities for evaluating creditworthiness,” said Jason Rosen, CEO of Prism. “Prism’s infrastructure transforms that potential into reality, equipping clients with analytical advantages to strengthen their businesses and better serve consumers.”
Additionally, the company has appointed Ben Donahue as a senior sales executive. Donahue previously held the role of head of sales at Nova Credit and most recently served as the vice president of sales for Atom Finance.