2021 Trends for Financial Services

by Stefani Wendel 7 min read January 4, 2021

2020 is finally over – been there, done that. And while it seems safe to say most everyone is all too eager to kick off a new calendar year, the reality is we’re still reeling – and will continue to reel – through the economic impacts of the COVID-19 global pandemic.

As we inch closer to the one year marker of when many businesses were sent home – across all industries, including those tech-inclined and those less so – the understatement of the year is that the world has since changed as have consumer communication preferences, how businesses and customers interact, tweaked definitions of privacy, and new (heightened) expectations of evolving a positive customer experience with minimal friction and maximum security.

While last year’s predictions of entering a new set of Roaring 20’s may not have panned out the way we had initially imagined, many of the trends thought to evolve over the last 365 days did. As we all look toward a post-pandemic world, here are six top trends to keep tabs on throughout 2021.

1. Data

Data as a commodity and as a business differentiating factor has reached an all-time high. It’s doing more across the entire customer lifecycle and can elevate businesses to best prep for growth, especially as consumers begin to look for more financial products (whether looking for financial assistance as the CARES Act accommodation period ends, or to take advantage of the booming mortgage industry, etc.).

Data can also give more insights into consumers than ever before. Far beyond just credit scores and financial data, today’s data sets can reveal consumers’ lifestyle preferences, their preferred communication channels, their rental histories, and so much more. With alternative credit data and non-traditional data (including consumer-permissioned data), businesses can get a holistic picture of their customers’ payment behaviors. That streaming media service monthly payment may seem minimal, but now could increase your credit score through Experian Boost.

Experian is still making big strides in all efforts to use data for good. As of December 31, 2020, Experian Boost has “boosted” Americans’ credit scores nearly 47 million points. Additionally, throughout 2020, Experian worked with financial institutions and credit furnishers to continue to put consumers first and serve as the consumer’s bureau.

Coming up in 2021? Using data for differentiation, which can ultimately drive business growth. From instant prescreens to identifying your best customers (and offering them cross-sell and upsell opportunities to increase retention and customer loyalty) to helping customers that may be on the brink of financial distress and connecting them with management solutions to help them get back on their feet, data can help businesses – and their customers – get there.

2. Fraud and Friction (And the Reduction of Both)

With the pandemic, fraud saw increases across the board. Here are just some quick stats:

  • 200% increase in first-time online banking usage immediately following shelter-in-place orders (Aite Group, “Workplace Distancing: Adapting Fraud and AML Operations to COVID-19,” April 2020)
  • 652% year-over-year increase in records found on the dark web (Experian CyberAgent technology)
  • 50% increase in human farming – real people being hired for purposes of fraud – month-over-month in March 2020 (Arkose Labs)

And, unsurprisingly, consumer and business sentiments toward fraud are also evolving with these increasing trends. For example, according to Experian’s North America Trends Report, half of consumers continue to site security as the most important factor of their online experience. Additionally, there’s been an increase in the percentage of businesses who have recently increased or are planning to increase fraud budget from 76% in 2019 to 89% as of Sept. 2020.

More complex phishing schemes and increased fraudster activity is due in part to numerous industries having to shift to online processes and business transactions overnight. Adoption for mobile wallets has jumped 11% since July 2020, according to the 2020 Global Insights Report. Systems and technology that were not ready or not armed with the necessary infrastructure left critical access points open that could be exploited by fraudsters.

Fraud exists across the customer lifecycle, at every access point. And while fraud is complex, with Experian as your partner, solving it isn’t. Innovative technology enables businesses to prevent fraud by identifying credible customers and applying the correct treatment to the riskiest consumer and business accounts. We can help you develop a layered risk management strategy so you can focus resources on growing and protecting your customer relationships.

3. A New Administration – Changing of the Guards on the Regulatory Front

With the new year enters the inauguration of a new president and administration. Though there is still much to be determined, certain areas are drawing a lot of attention with this changing of the guards. The highlights?

The CFPB. Priorities and leadership could change. With COVID-19 top of mind, it is likely there will be aggressive agendas put forth to help protect the millions of consumers who have suffered economic distress and harm as a result of the pandemic.

Data Portability. With an increased consumer appetite to port their data, questions and concerns around data security – and how to verify for a third party asking for the data – are also on the rise. There are a number of issues facing financial institutions around data portability, one of the largest being defining the line between consumer account information and proprietary data.

All things privacy – state vs. national bills. The debate continues on how to move forward (whether privacy legislation will be handled by the states or at the national level), but for now it seems there is more progress at the state level. California was the first state to push through state-level privacy legislation in the form of the California Consumer Privacy Act of 2018. Twenty-four states are considering legislation that would require consent before collecting or disclosing personal information with third parties.

4. Analytics + Digitalization – Smarter, Better, Faster

COVID-19 accelerated digital transformation for many. Some companies were ready, having already started making the headway in years prior, while others struggled – and some continue to struggle. The pandemic – and its corresponding recovery – is reason now, more than ever, to get some of your digital transformation priorities checked off of your list. Your customers demand it and your business needs it. Tackling analytics and digitalization not only brings your business up to speed, but improves your decisioning, enhances your offerings, and enables better platforms and data usage.

In addition to digitalization, artificial intelligence for credit decisioning and personalized banking can also be expected to be a top trend, especially AI that is ethical and explainable, as will the increasing adoption and implementation of cloud computing. As consumer experience continues to reign supreme, any and all technology to enhance and improve that experience – think chatbots and virtual assistants – will also likely increase in presence.

5. Verification & Identity

Identity has been a trending topic over the last few years, brought on by increasingly digital lifestyles and the intersection of personalization, frictionless transactions and adequate security. Identity verification and verification of other information such as income, employment and the like are increasingly needed in a today’s pandemic and tomorrow’s post-pandemic world.

Leveraged across the lifecycle and during critical customer interactions, the need is especially heightened for insights, data accuracy, and diversification of data sets – to name a few. And while it was already established that identity verification is not just for marketing services, there are now even greater needs for financial institutions to be able to confidently know that their customers are who they say they are.

Some areas to keep your eye on in 2021? Identity, income, assets and employment.

6. Redefining the Modern Mortgage

As has been a common trend, spurred by the disruption caused by COVID-19, the mortgage industry is one of the many to have a magnifying glass brought to its areas for improvement. Some of those areas include operational efficiency, digital adoption and transparency. In line with the better and faster needs that lenders are continually trying to pace with, the need for speed is hitting mortgage originations, with an ideal situation outlined as closing in 30 days or less. Creating operational efficiencies through faster, fresher data can be the key for lenders to more accurately assess a borrower’s ability to pay upfront.

Additionally, now, as most mortgage lenders are breaking previous origination records by a landslide (thanks pandemic), there’s new focus on other performance indicators.

With such impetus, the modern mortgage is constantly evolving, incorporating customer-centric facets including a seamless digital process, providing meaningful customer experiences and leveraging the latest and greatest technology to better future-proof the industry through scalable technology, while aiming to reduce costs.

For all your needs in 2021 and beyond, Experian has you covered.

Learn More

Related Posts

Rewriting the Road Ahead with Longer Loan Terms and Increased Refinancing Options

The automotive market is entering a new phase defined not just by what consumers are buying, but by how they’re choosing to finance it. According to Experian Automotive’s State of the Automotive Finance Market Report: Q1 2026, nearly one-third (35.55%) of all new vehicle loans now stretch more than six years, up from 30.83% in Q1 2025. Similarly on the used side, 31.54% of loans extended more than six years, an increase from 28.60% last year. The shift highlights why affordability is reshaping how consumers are financing their vehicles, particularly in larger and higher-priced vehicles. Refinancing gains traction as interest rates stabilize In addition to longer-term loans, consumers are becoming increasingly deliberate with their financing decisions and managing monthly payments as refinancing activity has gained momentum. For instance, consumers who refinanced this quarter lowered their interest rate by 2.2% and saved an average of $81 on their monthly payment. Credit unions, in particular, continued to play a major role in helping consumers secure more affordable payment options. In Q1 2025, credit unions accounted for the lion’s share of automotive refinancing at 63.43%, from 62.31% a year ago. By comparison, banks went from 23.51% to 22.59% year-over-year. Furthermore, those who refinanced with a credit union saved an average of $101 this quarter, whereas those who refinanced with banks saved $60. Expanding credit access through flexible financing Another notable trend this quarter was the incessant growth in subprime financing as credit accessibility across the market continues to increase. In the first quarter of this year, subprime borrowers made up 15.75% of total vehicle financing, from 14.40% last year. For new vehicles in particular, the subprime market went from 5.61% to 6.88% year-over-year, while subprime in used vehicle financing grew to 20.60% this quarter, from 19.36% a year ago. Increased activity in the subprime segment highlights continued confidence in the automotive market and underscores the importance of expanded financing options. As consumers seek greater flexibility with financing decisions that fit their lifestyle, lenders and dealers have the opportunity to approach them with more personalized solutions. These trends are helping keep both new and used vehicle markets moving forward, while creating new opportunities for consumers to manage payments and purchase confidently. To learn more about automotive finance trends, view the full State of the Automotive Finance Market Report: Q1 2026 presentation on demand.

Published: June 2, 2026 by Melinda Zabritski
Staying Competitive After Trigger Leads Evolve: A Roadmap For Lenders

Trigger leads have long been the preferred solution for identifying high-intent mortgage borrowers. But with the implementation of the Homebuyers Privacy Protection Act (HPPA), which introduces new limitations and consumer protections around trigger leads, that playbook will need to shift. Now, lenders are quickly facing a pivotal shift in how they discover, engage, and convert prospective borrowers into customers. The industry now stands at a crossroads. Lenders who adapt early—leaning into predictive tools, consent-based engagement, and smarter prescreening—will redefine borrower acquisition in a more privacy-centric era.  HPPA: A structural change to mortgage marketing  The HPPA amends the Fair Credit Reporting Act by significantly restricting the use of mortgage inquiries for prescreen purposes. As of March 5, 2026, credit bureaus may only provide or utilize mortgage inquiries to:  End users with explicit borrower consent  The originator of the consumer’s current mortgage  The servicer of the consumer’s current mortgage  An insured depository institution or credit union where the consumer has an existing account  While these exemptions may provide continuity for banks and credit unions, many mortgage brokers and nonbank lenders will need to overhaul their prescreen practices—or risk being cut off entirely from a previously high-performing acquisition channel.  Why this isn’t just a compliance shift—It’s a strategic recalibration  Mortgage triggers in prescreen allow lenders to react instantly to consumer intent. Lenders rely on a prompt and convincing narrative to entice applicants to switch lenders. Mortgage inquiry triggers are effective and were, therefore, a prospecting strategy for many lenders. Recent legislative changes significantly restrict the availability of these inquiry triggers, and impacted lenders are focusing on a more intentional prospecting strategy to compete.   Without these mortgage triggers in prescreen, lenders need to ask:  Who are we trying to reach?  What early signals can we act on?  How do we earn permission and attention before a mortgage inquiry ever happens?  Transforming the funnel: From reaction to anticipation  The shift in mortgage inquiry-based prescreen isn’t the end of high-intent lead targeting. It’s the beginning of a more strategic and intentional approach—one that leverages earlier indicators of mortgage readiness and focuses on building relationships, not just closing transactions.  Here’s where the momentum is evolving, creating a new and smarter funnel:  Prescreen marketing: Using credit and behavioral attributes to help identify consumers who meet specific lending criteria before they signal active intent.  Predictive modeling: Leveraging propensity scores or custom models to prioritize outreach based on conversion likelihood.  Consent-based engagement: Implementing compliant mechanisms to capture and manage borrower opt-ins at scale.  The power of predictive modeling  According to recent industry interviews, propensity modeling is emerging as one of the most effective replacements for trigger-based prescreen. These models analyze hundreds of credit attributes—such as utilization, account mix, account age, and depth—to help identify consumers statistically more likely to seek a mortgage.  For lenders just beginning to use predictive modeling, off-the-shelf models can be a quick way to identify potential borrowers. For example, when layering propensity scores on top of credit eligibility, which can improve borrower targeting, many lenders see an increase in open mortgage loan rates.  Meanwhile, custom-built models, which analyze a lender’s own campaign performance over time, offer the highest level of precise targeting. These models isolate the attributes most predictive of conversions within a specific product mix—optimizing not just volume, but fit.  Speed without traditional triggers? It’s possible  One of the biggest concerns among lenders is maintaining the speed historically enabled by trigger leads. But that concern may be overblown.  Self-service prescreen platforms now allow marketers to generate qualified lead lists in as little as 24 hours, enabling rapid response during rate drops, competitive shifts, or seasonal demand spikes.   For those new to prescreening, batch campaigns still offer value, especially with analyst support.   Don’t overlook retention  In an era of intense acquisition competition, retention becomes a key differentiator.  Lenders who monitor property status, cash flow, and consumer credit behavior can proactively identify when an existing borrower is likely to list, refinance, or exit. Armed with that intelligence, lenders can re-engage with the borrower at the right moment—sometimes before a competitor is considered or contacted.  This level of behavioral intelligence may soon separate proactive lenders from reactive ones.  Actions instead of reactions  The evolution of trigger-based prescreen doesn’t just require new tools; it demands new thinking. Lenders should begin by auditing their current pipelines and determining:  What percentage of our acquisition is dependent on triggers?  What share of our book falls under the HPPA exemptions?  How will we scale compliant opt-in collection?  Are our current prescreen or modeling capabilities future-ready?  Those who answer these questions today—and act on them—won’t just be in compliance with the new laws, they’ll lead in a transformed market. Lenders should also be asking:   Do we have the infrastructure to collect and act on borrower consent?  Are our acquisition teams equipped to run prescreen campaigns — both batch and self-service?  What predictive models are we using (or could we use) to prioritize leads?  Are we proactively monitoring our portfolio to catch retention risks early?  How are we preparing our sales teams for longer, more consultative buying journeys?  Conclusion  The HPPA signals a shift away from relying on passive, inquiry-based prescreen acquisition and the beginning of smarter, more strategic engagement with potential borrowers. Lenders who embrace this transition early will find themselves not just compliant, but competitive—with deeper borrower insights, better conversion rates, and stronger long-term customer relationships.  The market is moving. The only question is: will you lead the change or chase it?  Citation  Experian. (2025, November). Interview: How the Homebuyers Privacy Protection Act is reshaping mortgage marketing—and what lenders should do now [transcript]. Experian Mortgage Insights. Insights based on lender feedback, campaign performance data, and analysis of prescreen marketing strategies and predictive modeling outcomes were gathered from Experian client engagements and internal mortgage analytics between May and October 2025. Homebuyers Privacy Protection Act timeline and legal context referenced from legislation signed September 5, 2025, with implementation beginning March 5, 2026.   

Published: April 22, 2026 by Ivan Ahmed