New York-based fintech company Prism Data has raised $20 million in Series A funding led by Story Ventures. The round also included participation from FINTOP Capital, Core Innovation Capital (Core VC), Obvious Ventures, 1st & Main Growth Partners, and Mana Ventures.
The latest financing follows a $5 million seed round announced in 2023, bringing Prism Data’s total funding to more than $25 million.
Prism Data was created in 2020 from technology developed at credit card company Petal and became an independent business in 2023. Led by founder and CEO Jason Rosen, the company develops financial analytics and automated credit risk underwriting software for banks, fintech lenders, and other financial institutions.
Its platform uses consumer-permissioned bank transaction data to assess creditworthiness based on income, spending, savings, financial obligations, and other cash flow patterns. Its flagship CashScore product generates risk scores that lenders can use alongside traditional credit information or as an alternative when conventional credit histories are limited.
Prism Data also provides transaction categorization, income analysis, and financial insights through an API-based platform designed to integrate with lenders’ existing underwriting systems.
Alongside the funding announcement, the company introduced REFRACT, an AI-powered transaction categorization engine trained on a proprietary dataset of more than 30 billion bank transactions. The technology is designed to distinguish different types of financial activity, including income, borrowed funds, refunds, purchases, and transfers. It will support the development of future CashScore models and analytics products.
According to the company, its technology is used by three of the five largest US fintech lenders and six of the ten largest digital banks. Its products are also distributed through financial data and credit infrastructure providers, including Equifax, Plaid, and LexisNexis.
Prism Data reported that monthly API request volume increased more than 100-fold over the preceding two years, reflecting increased usage of its underwriting solutions.
The company plans to deploy the new capital toward expanding its technology infrastructure, AI capabilities, and data science operations. The investment will also support the development of REFRACT-based credit scoring models, broader implementation with traditional banks, and expansion across consumer and small business lending in the United States and Canada.
