All posts by Rebecca McGrath, Global Content Marketing Manager, Experian Software Solutions

Moving into the agentic era of fraud and credit risk decisioning In the next five years, underwriting will change more than it has in the past two decades. That’s the clear message from Experian’s latest global study. Based on research with more than 700 senior decision-makers across 10 countries and over 70 expert interviews. The findings point to an underwriting future that is more automated, contextual, and seamlessly embedded into customer journeys. But while technology is the enabler, the driving force is the consumer. Download report Consumers want more, and technology is heightening expectations Today’s consumers want credit experiences that are faster, more transparent, and tailored to their real financial lives. Over 40% of respondents told us that a frictionless borrowing experience is now the top priority for consumers, especially younger generations. They’re no longer willing to tolerate difficult journeys, unclear terms, or long waits for a decision. This means underwriting can no longer remain a back-office function. It must become a front-line service that operates in real time, embedded within digital channels. Already, 83% of industry leaders expect lending to become an embedded part of commercial transactions, not a standalone product. Technology is transforming how risk is assessed Automation and AI are changing how we assess risk and make decisions. But crucially, most experts do not expect AI to fully replace human underwriters. Instead, AI is seen as an enabling tool, handling lower-ticket cases at scale, while humans remain essential in high-value or complex decisions. What is changing is the scale and speed. By 2030, decisions will increasingly be powered by agentic AI – digital agents that act on behalf of customers to compare products, submit applications, and verify identity. This will radically simplify the journey but will also mean that businesses must rethink how they secure trust and verify identity in a world of invisible interactions. Alternative data is essential, but orchestration is the key More data is available now than ever before, but access alone is not enough. The winners in 2030 will be those who can orchestrate data in real time, from traditional credit files to behavioural, open banking, and synthetic sources, to build a holistic, explainable view of each customer. In fact, 80% of respondents expect to rely more on alternative data than traditional sources by the end of the decade. This shift will improve credit inclusion and model precision, but also demands investment in platforms that can ingest and manage data with full transparency. Fraud is not going away As underwriting becomes more seamless, the traditional touchpoints for fraud detection start to disappear. In low-friction journeys, fraud doesn’t vanish; it hides. That’s why 94% of leaders told us that cybersecurity and fraud prevention will remain a top priority into the next decade. Trust will need to be embedded into the journey with dynamic risk signals, behavioural biometrics, and AI-based identity verification working in the background to spot anomalies and synthetic profiles. Risk and fraud functions, once siloed, are now converging. What should businesses do now? The insight from this research is clear: businesses must evolve their approach to underwriting to better tackle a rapidly evolving environment. Here are the five priorities to focus on now: Invest in orchestration: Data access alone isn’t enough. Tools must connect, validate, and use alternative, behavioural and consented data in real time. Embed trust: Adopt continuous risk monitoring, robust digital identity, and explainable models to ensure fraud is detected and decisions remain accountable. Ensure platform-readiness : Cloud-native, API-first architecture will be essential for agility, scalability and compliance. Rethink human contribution: The role of the underwriter will shift from manual decision-making to exception handling, oversight, and governance. Train staff for exception handling, oversight, and governance, not manual processing. Adopt a partnership mindset: Success will depend on building and managing high-performing ecosystems and leveraging trusted partners for infrastructure, insights, and innovation. Want to lead in 2030? Download report

Across the financial sector, model risk management is no longer just a regulatory obligation; it’s a strategic imperative. As financial institutions face rising pressure from regulators and the growing complexity of AI, one area that has emerged as particularly difficult to get right is model documentation. Experian recently conducted a global study of 511 financial institutions in the United States, the United Kingdom, and Brazil to explore how firms are navigating this challenge. Download full report now Regulatory requirements are increasing According to our research, 95% of financial institutions report a rise in the number of regulations they need to comply with. Nearly seven in ten expect regulatory changes to increase even further over the next two years. What’s changing isn’t just the volume of regulation, it’s the frequency and specificity of regulatory feedback. 79% of institutions say supervisory concerns from regulators have increased, often requiring immediate attention or formal remediation plans. This is not just a compliance issue. When documentation is unclear or inconsistent, it raises doubts about the model itself. This leads to rework, slower approvals, and reputational risk. Manual processes are still the norm Despite these rising pressures, 60% of institutions still rely entirely on manual processes for model documentation, involving an average of 29 people. Larger institutions report 50 or more individuals involved across teams. This approach is time-consuming, error-prone, and unsustainable. Regulatory requirements evolve constantly, and manual documentation simply cannot keep pace. Financial institutions report spending up to one-third of their time on documentation tasks that could be automated. Hybrid tools aren’t enough: Businesses need end-to-end automation Many firms have tried to tackle the challenge with partial automation, but these approaches are falling short. 68% of respondents say their current technology doesn’t meet compliance needs, and most still require manual effort to stitch together outputs from multiple tools. The research found that 28 different third-party tools are being used by respondents, often fragmented and duplicated. What’s needed is an integrated solution across the full model lifecycle and can produce regulator-ready documentation. The future is automated Recognising a need for change, 87% of respondents plan to implement automated model documentation within the next two years, with a near-even split between third-party solutions and internally developed tools. But automation alone isn’t the answer. Success requires strong data foundations, responsible AI frameworks, and modern governance. Financial institutions are prioritising improvements in three key areas over the next 6–12 months: What can financial institutions do now? To meet these challenges, businesses must shift from tactical fixes to strategic transformation: Establish clear documentation standards across model types Embed explainability and responsible AI principles Enable seamless handoffs between model developers and validators Modernise operations to reduce time-to-market and regulatory risk Download the full report now to understand how the compliance landscape is evolving, and what your business can do about it Download now

Financial institutions have no shortage of data — but transforming it into actionable insights remains a challenge. Siloed systems, inconsistent workflows, and compliance concerns often slow progress and limit the impact of AI and analytics initiatives. Transforming raw data into valuable insights hinges significantly on feature building —selecting, modifying or creating new custom features based on existing data to enhance model performance. Download the eBook to understand the key challenges businesses face today and what they can do in response: Data silos and poor lineage tracking Disconnected teams and manual processes Difficulty scaling model development efficiently By centralising and automating feature development, financial institutions can reduce risk, boost agility, and improve time to market. It’s not just about better tools — it’s about creating smarter workflows that align people, data, and strategy. Download now

Experian's new global report is now available on how businesses can enhance efficiency, insights, and growth through integration to transform the future of risk strategy. Download report In the ever-evolving financial landscape, the convergence of credit risk, fraud risk, and compliance is becoming a game-changer. Financial institutions (FIs) increasingly recognise the need to integrate these functions to enhance efficiency, gain deeper insights, and drive growth. The 2024 global report on the convergence of credit, fraud, and compliance sheds light on this critical transformation, emphasising how a unified strategy can revolutionise risk management. The report highlights the importance of convergence in shaping the future of financial services. We surveyed 750 leaders in credit risk, fraud risk and compliance in financial services organisations across the world. Inside the report: The need for convergence As technology advances, financial institutions (FIs) face the dual challenge of managing complex systems while simplifying consumer processes. The report reveals that organisations use an average of eight tools across credit, fraud, and compliance, with some using more than ten. This fragmentation leads to inefficiencies and increased risks.In addition, 79% of respondents want to work with fewer vendors to manage credit risk, fraud, and compliance, underscoring the need for streamlined operations. Independent evolution of functions and associated challenges Credit risk, fraud risk, and compliance functions have evolved independently, creating operational silos and technology management challenges. This separation has led to increased fraud and credit losses. The report highlights that only 9% of organisations prioritise these functions equally, with most focusing on fraud. However, 87% of respondents acknowledge the overlap between these areas and are working towards closer collaboration. Regulatory pressures and advanced fraud techniques New regulations in the US, UK, and EU are compelling FIs to reimburse consumers for losses due to scams, increasing the liability for both sending and receiving banks. Penalties for failing to implement effective Anti-Money Laundering (AML) solutions have also intensified. These regulatory demands and advanced fraud techniques necessitate a more integrated approach to risk management. Early stages of convergence While the market is beginning to recognise the benefits of convergence, many FIs are still in the early stages of this journey. The convergence speed varies, but mature organisations have already started or plan to start the process soon. The report shows that 91% of respondents believe that forward-looking companies will centralise these functions within the next three years. However, only 15% prefer a 'point solution', 36% prefer a single integrated solution, and 49% prefer modular integration. The role of technology Technology plays a crucial role in integrating functions and managing risk. Next-generation platforms are essential for adapting to market needs, delivering innovative products, and meeting regulatory requirements. The report emphasises the importance of data aggregation, which combines diverse data for deeper insights, and the integration of credit decisioning and fraud detection solutions to balance risk and growth goals simultaneously. Improving risk management through alignment Correctly identifying consumers, managing fraud risk, making informed credit decisions, and ensuring compliance share common ground. The report shows that 57% of respondents believe aligning credit risk, fraud, and compliance functions leads to better overall risk management. Businesses with more centralised practices report improved risk management effectiveness, operational efficiencies, and data integrity. Benefits of convergence The convergence of credit risk, fraud, and compliance offers numerous benefits, including: Improved risk management effectiveness: Better alignment leads to more effective risk management strategies. Operational efficiencies: Streamlined processes and reduced duplication of efforts enhance operational efficiency. Increased data integrity: Centralised data management ensures consistency and accuracy. Cost reduction: Consolidation of functions and technology reduces costs. Enhanced customer experience: A unified approach improves customer recognition and service across all channels. Read the report to find out how to prove value through integration. Download report