This report lays the foundation for a FinRegLab initiative that will explore opportunities to advance financial health measurement for small businesses. It proposes a framework and set of metrics for defining and measuring small business financial health using digital bank account data. The report also outlines how financial health measurement together with cash flow data could help CDFIs better measure their impact and create value for a broader range of financial institutions beyond CDFIs.
Measuring Small Business Financial Health With Cash Flow Data