At A Glance
The lending environment is changing fast, from interest rates and regulation, embedded finance, AI, and shifting consumer behavior. But the lender’s core job hasn’t changed: making confident decisions about people they may not fully know.In this first episode of Ask the Expert, Experian’s Jeff Hops, Senior Director of Data Platform and Product, and Erin Haselkorn, Senior Director of Analyst Relations, explore how broader data and new signals can help lenders better understand today’s consumers, while maintaining responsible decisioning.
Lending is changing
Interest rates, regulation, embedded finance and AI are reshaping the lending landscape. Consumer behavior is evolving just as quickly.
But the core job hasn’t changed. Lenders are still making decisions about people they don’t fully know, and that makes data more important than ever.
“There are periods where nothing changes, and periods where it seems like everything changes. We’re in the latter … but the core premise hasn’t changed. You’re still trying to lend to somebody you don’t know.”
ExperianJeff Hops, Senior Director of Data Platform and Product
To make those decisions with confidence, lenders need a strong foundation of identity, history and reliable signals. In a period of rapid change, the quality and completeness of that data become even more critical.
A more complex view of today’s consumer
What has changed is the consumer.
Traditional credit data is foundational but can be further enhanced with visibility on how people earn, manage and move money. Income may come from multiple sources, and financial activity often spans bank accounts, applications (apps) and digital channels.
Cash flow data, for example, can provide a clearer view of what’s actually coming into a consumer’s account, beyond what traditional records may show.
These additional signals can help lenders better understand:
- Income variability across multiple earning sources
- Current financial behavior through cash flow activity
- Digital and identity-linked activity across channels
These signals don’t replace traditional data; they expand it. The result is a more complete and current view of the consumer.
From exploration to real-world application
The conversation around broader data signals has moved beyond theory. Lenders are no longer just asking whether these signals are useful. They’re asking where, how and under what governance they can be applied across the lending lifecycle.
Lenders are actively researching, testing and implementing new data sources across the lending lifecycle. What was once experimental is now operational.
Institutions are progressing through a clear path:
Today, alternative data is being used in areas like analytics, channel scoring and decisioning, often within governed environments that allow for safe testing and validation.
AI may accelerate this shift by helping institutions identify patterns at scale, but its value depends on the strength of the underlying data: quality, governance, context and clear business use cases.
More signal, more responsibility
As data availability expands, lenders have access to more granular insights than ever before.
That creates opportunity, but also responsibility.
The institutions that lead won’t be the ones that use the most data. They’ll be the ones that know which signals to use, how to validate them and how to apply them in ways that are fair, explainable and aligned to consumer outcomes.
“Institutions can unlock more granular and powerful decisions, but they have to do it responsibly.”
ExperianErin Haselkorn, Senior Director, Analyst Relations
The future of lending will be shaped not just by how much data is available, but by how thoughtfully it’s applied. Keeping the consumer at the center of decisioning is essential to building trust and long-term success.
Explore alternative data with us
A more complete understanding of today’s consumers starts with better data.
Let’s work together to build more confident, more responsible lending decisions.
About our experts
Jeff Hops
Senior Director, Data Platform and Product, Experian
Jeff Hops is a Senior Director in Experian’s Financial Services and Data business with over eight years of experience driving innovation in credit and data solutions. He has led product development for Experian’s Credit Report and played a key role in launching Ascend Identity Platform™, a leading identity resolution platform.
Erin Haselkorn
Senior Director, Analyst Relations, Experian
Erin Haselkorn is responsible for analyst relations for Experian. She has developed an understanding of key marketing trends across a broad range of verticals. Her market research around data strategy, AI, fraud, identity and data management, paired with her broad Experian product knowledge, gives her a unique understanding of business automation and data trends. Erin is a frequent spokesperson and guest blogger.
