Extra Credit: A Financial Podcast- Episode 35, “Rewiring Credit Furnishment for a New Era” with Christian Widhalm

This podcast originally posted on TransUnion’s website October 28, 2025. 

Christian Widhalm, CEO of Bloom Credit, joins the latest episode of Extra Credit to discuss how outdated credit reporting infrastructure is being reimagined to support new data types, alternative underwriting, and broader financial inclusion.

He explains how Bloom is addressing the limitations of legacy reporting formats, originally built for traditional products and monthly cycles, by enabling lenders to furnish both conventional and alternative data more accurately and in real time.

The conversation explores the rise of BNPL, the potential of transactional data to better serve underserved consumers, and the regulatory headwinds shaping open banking. Widhalm also shares why traditional credit data is not dead, despite the hype, and how FinTech partnerships are accelerating innovation across the lending ecosystem.

Transcript:

Craig LaChapelle: Okay, folks, on this next episode, we’re excited to discuss the U.S. credit reporting system, the opportunities it has, and its likely evolution. Also, if you’re so inclined, please subscribe to TransUnion’s Extra Credit podcast. The last episode was quite enlightening; we discussed how financial institutions win with data driven marketing, supported by our guest Herman Lyons. Okay, let’s get into it. Hope you enjoy.

We’d like to welcome our guest, Christian Widhalm. Christian brings over 15 years of experience in venture backed FinTech, having built a career focused on delivering innovative financial solutions in highly regulated industries. Before leading Bloom Credit, he served as Chief Revenue Officer at LendKey Technologies, where he managed relationships with over 300 banks and credit unions. At Bloom Credit, Christian is at the forefront of transforming how businesses access and furnish credit data.

So, Christian, I gave you a bit of an extensive introduction there, but help us learn a little more, beyond the top line, about you, Bloom Credit’s mission, and, generally, what we mean for the broader audience by the term “credit furnishing.”

Christian Widhalm: Sure, and first of all, thank you for having me. Appreciate it and excited to be on. Bloom Credit, at its core, is a B2B credit data infrastructure platform built around a suite of APIs that help clients access data from credit bureaus more easily, as well as report credit data more easily.

Going back to reporting, that’s really the furnishing component. As you know, but for others listening, furnishing is the core of getting data into the major credit bureaus so it can be distributed and used by lenders across the country. That’s how the data is delivered.

The issue with traditional furnishing is that it wasn’t built for the modern age. Metro 2, the format lenders use to submit data to the bureaus on a monthly basis, is over 25 years old. When it was first built, it didn’t consider newer data types and credit products available today. Think buy now, pay later; credit builders; and alternative data like cash flow information. The original Metro 2 and the broader reporting foundation weren’t designed with those in mind. It has adapted over time, but it still wasn’t designed for all these new things.

It also focused on more traditional products and normal 30 day statement cycles, not real time or intramonth reporting. And even though it’s not a credit product per se, if you ask Gen Z who their primary financial institution is, a large share will say Cash App or Venmo. Things have changed a lot over the last 25 years, especially the last 10 to 15, in terms of offerings. When things change, you have to adapt.

So within credit data reporting and furnishing, the big question is how to serve the broader industry with all these new products and data types, and still make it work for consumers, lenders, and bureaus.

Josh Turnbull: Christian, I want to build on that. In a second we’ll ask the immediacy question about why this matters more now. But before we get there, you talked about confines of the current environment and how it was built. What are some things you’ve looked at or seen that are really interesting in terms of how people are furnishing data and the types of data being furnished?

Christian Widhalm: The hot button topic for the last five years has basically been BNPL, buy now, pay later. It’s a good example of friction. You’ve got a lot of data and a growing industry, and the volume of BNPL payments continues to grow in the U.S. and beyond. It’s been challenging to get BNPL information into the credit bureaus.

Ideally, that friction should be eliminated. Scores should be able to account for it, and there should be easy ways for it to be ingested into credit reports. I know everyone, bureaus, scoring agencies, and BNPL providers, has been working on it. But it shows how hard it is to introduce new things.

We’re also seeing our clients start to report alternative data, specifically checking account transactions and payment behaviors that demonstrate cash flow and creditworthiness for activities that traditionally haven’t counted toward a credit report or score. That’s been interesting to watch.

The issue is that if you’re a lender trying to do this on your own, it’s tough. The CRRG, the guideline overseeing credit reporting in the U.S., is something like 300 to 400 pages, written in a way that requires deep understanding. That can lead to issues when folks take it on themselves.

It’s one reason we started Bloom and focused on reporting and furnishing: to modernize it so lenders can confidently and accurately report both traditional credit repayment data and alternative data, and do it for new product types without introducing errors, and to move more toward real time.

Josh Turnbull: I want to pull on that point. There are companies newer to the scene focused on alternative or additional data who suggest the system that’s been around for some time is yesterday’s system, and theirs is the future. You just described working within and leveraging the existing system. Why do you see that as the path versus disregarding what’s been built?

Christian Widhalm: The U.S. financial system is built around consumer credit, and the bureaus play a critical role in making sure data exists so consumer credit can happen safely for lenders and consumers. Some say scores or traditional credit data are dead. That reminds me of the Mark Twain line: rumors of my death have been greatly exaggerated.

You need both. When I talk about alternative, I mean specifically cash flow data. Risk teams at lenders have always done cash flow underwriting, historically with pay stubs and bills to calculate DTI and ability to repay. Now, with transaction access, there are quicker, deeper insights to understand someone’s capacity to take on debt.

Cash flow analysis is most beneficial for underserved markets, thin file, no file, near prime, subprime. For prime and super prime, the need isn’t as prominent. Traditional credit data and scores like FICO and Vantage work; they rank order risk well and are proven. Cash flow adds another layer of confidence to make sound decisions. Using both is prudent. So “traditional credit data is dead” feels more like a rallying cry than reality.

Craig LaChapelle: Let me ask it a different way. Every couple of years there’s a new entrant who says, “We have social or affinity networks, a new underwriting approach, and we don’t use credit reports.” Ultimately, they often do. Are there successful examples of companies truly underwriting at scale without using the credit report?

Christian Widhalm: There’s always someone who says they have a secret sauce. The reality: is it FCRA compliant? Is there disparate impact? Do they have enough history to show it works through different economic cycles? I’ve seen FinTech lenders claim hundreds or thousands of data points in decisions. I’ve looked at securitizations where they breach loss covenants over time. I’m not saying using alternative data is wrong, it’s right. There’s more data to use in addition to what’s on the credit report. But it should be in addition to, and it has to be proven to be indicative of credit risk.

Craig LaChapelle: We’ve broached alternative data. Is there a type you think has great promise but the ecosystem hasn’t unlocked yet?

Christian Widhalm: Yes, and it’s what we’re working on, transactional data from checking accounts to create real tradelines on a credit report. In the U.S., around 100 million people don’t have access to mainstream credit rates or products, for many reasons: roughly 65 million thin file, about 20 million unscorable, plus subprime, 40 million immigrants with limited history, and 15 to 20 million college age consumers getting started.

Credit has always been a chicken and egg problem. If you don’t have credit, it’s hard to get credit, and many don’t know they need it until they need it. The ability to demonstrate creditworthiness without going into debt, and to use that to establish real tradelines with real score impact on traditional reports, is huge. It lets FIs say yes to more people when prudent, supports stickier deposit relationships, and benefits bureaus and consumers.

Taking cash flow information from banking transactions and translating it onto the credit report with traditional trade attributes is a game changer for the ecosystem. We’re at the beginning, but it’s significant.

Craig LaChapelle: What are the biggest obstacles you’re tackling that have prevented the ecosystem from getting there already?

Christian Widhalm: Time. Everyone understands the benefits, but banks, credit unions, and bureaus are heavily regulated, so they move slower, and for good reasons. You have to implement the right way and understand impacts on consumers.

Adoption has been accelerating as FIs become more comfortable with FinTech partnerships. We’re a B2B FinTech; we’re not consumer facing. For a long time, FinTechs were viewed as the enemy, unbundling bank products. Now banks and credit unions are more comfortable where partnerships add value. That still takes time.

Risk teams also need to get comfortable with differences in reported payments for underwriting. That requires back testing and proof. A trusted third party like Bloom can help guide them.

We’ve made considerable progress. We have one of the largest consumer lenders in the country, Navy Federal Credit Union, as a client. We have another top 10 credit union to be announced, plus a growing roster of credit unions and FinTechs. We’ve also been publishing data, including a report we commissioned with Cornerstone Advisors that we released last week, which has generated strong interest among traditional FIs.

Josh Turnbull: You used the phrase “you have to have credit to build credit.” It’s been a minute since I heard that getting my first card. With the pickup you’re seeing, why now? Why is this getting traction with financial institutions?

Christian Widhalm: There’s been ongoing consolidation among banks and credit unions. When I started 15 years ago, there were 15 to 16,000; now there are about 9,000. Competition has grown not just among FIs but also from consumer facing FinTechs and neobanks across different segments, not just underserved. Consumers increasingly use FinTechs as primary FIs or for strong financial relationships.

Banks and credit unions need to find their next generation of customers and demonstrate relevance. The average age of a credit union or community bank customer is around 53 to 54. The U.S. median age is about 39. I saw a stat that the peak age for banking value is 46, which means many institutions are seven to eight years past that peak and need to get younger.

Offering products and services like what we’re working on is critical. In the Cornerstone report, about 70 percent of Gen Z and Millennials surveyed, with credit scores 700 and below, selected credit building services from their checking accounts as the top desired feature, more than bundled subscriptions and the like. If FIs want to build relevance and differentiate checking, they need to consider these services, whether from Bloom or other features appealing to that demographic. There hasn’t been much checking account differentiation in decades; this is a way to engage an elusive segment.

Josh Turnbull: Let’s turn to policy developments. FHFA and others are leaning into rental data for mortgage decisions. Some see that as a watershed moment for using nontraditional data. On the other hand, there are moves to charge for access to open banking data. How do you make sense of that, and what does it mean for adoption?

Christian Widhalm: On rent in mortgage, it makes sense. If you’re not a homeowner, rent is typically your largest monthly obligation. If you’ve demonstrated consistent on time rent payments, that should be considered, and consumers should get credit for it.

On open banking, the question for the last decade has been: who owns the data? Many say the consumer does, but the rails aren’t free. The Plaid and Chase deal made headlines when Chase positioned charging for access. Who gets hurt? FinTechs, which rely on data to power products, some free, some paid, so product costs likely rise. Consumers are also impacted, since many FinTechs provide valuable services.

I don’t think Chase is out of line to ask for compensation for the rails. Plaid likely got a good first mover deal. What concerns me more is that with the CFPB, at least there’s one federal entity setting expectations. When states feel federal enforcement or the regulatory framework isn’t working for consumers, they step in. Then you get a patchwork, California, Illinois, New York, Massachusetts, creating death by a thousand cuts. For operators at FIs and FinTechs, that’s another tax: more audits, more compliance layers. We’ll see if state regulators start moving; if they do, dominoes could fall and make it more painful to manage for everyone.

Craig LaChapelle: Great perspective. This has been great. We’d like to keep the door open for you to join us again. Josh, any parting words?

Josh Turnbull: No, Christian, this has been great. Thank you for the time, and thanks for joining.

Christian Widhalm: Loved it. Thanks for having me.

Craig LaChapelle: Thanks again to Christian for joining us today. For those listening, don’t forget to subscribe to Extra Credit and make sure you catch each new episode as it drops. Just search “Extra Credit TransUnion” wherever you get your podcasts and hit subscribe. Craig here, it was good as always. Everybody, thanks, and we’ll catch you next time.

 

About the Hosts

Craig LaChapelle
Craig LaChapelle serves as Chief of Staff and leads TransUnion’s US financial services strategies, coordinating initiatives across auto, card, consumer lending and mortgage lines of business. These efforts include leading TransUnion’s strategic planning process, and shared analyst and GTM support functions. Prior to TransUnion, LaChapelle held a variety of leadership positions within consumer banking at Bank of America and was a strategy consultant with PWC Advisory Services.

Josh Turnbull
Josh Turnbull oversees TransUnion’s business with the fast-growing consumer lending market. He works to ensure FinTechs, retail banks, finance companies and other unsecured lenders are well-positioned to thrive — making smart consumer decisions. Previously, while at the preeminent think tank focused on consumer financial inclusion and health, Turnbull collaborated closely with innovators and prominent brands to safely and profitably expand access to financial services. Leadership roles at FIS and multiple positions at a regional bank over many years also contribute to his deep understanding of the financial services sector.