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In today’s showrooms, fraud doesn’t walk in wearing an obvious disguise. It looks like a “perfect” deal: Clean driver’s license Solid story Willing to sign anything …and then the payments never show up. Your team is stuck in the middle: protect the store from fraud and keep the buying experience fast and friendly. That’s exactly what Fraud Protect™ is built to do—a web-based Experian solution that helps automotive dealers quickly verify customer identities and detect fraud risk right from their CRM, on the customer’s own phone. How Fraud Protect makes identity verification quick and easy Fraud Protect is designed to slide into the process you already use, not blow it up. Here’s the actual flow. 1. Launch from your CRM The dealer starts everything from the CRM: Your team sends the customer a secure link directly from your CRM via SMS or email. The customer opens that link on their own mobile device and completes the flow on their phone. No special hardware. No juggling devices at the desk. 2. License authentication Next, the customer authenticates their driver’s license: They scan their license using their phone camera. The image is securely captured and processed in the background to ensure the license complies with standards. This kicks off document checks and helps anchor the identity to a real-world credential, without unsecured paper or digital copies, creating additional dealership risk! 3. Selfie capture for biometric match Then Fraud Protect confirms the person matches the document: The customer takes a selfie on their phone. Fraud Protect performs a biometric match between the selfie and the license image. If someone is trying to use a stolen or borrowed ID, this is where things start to fall apart for them. 4. One-time passcode (OTP) verification Fraud Protect also validates digital contact points if a heightened risk of third-party fraud is determined : A one-time passcode is sent to confirm the customer’s mobile phone number. The customer enters that OTP, proving they control those channels. Now you’ve tied a face, an ID, and real contact points together. 5. Identity verification & results into the CRM Behind the scenes, Fraud Protect: Runs the collected data through Experian’s fraud and identity analytics, including historical identity information and credit usage patterns. Identifies potential risks tied to that identity. Sends clear, easy-to-read results back into the dealer’s CRM—icons, scores and flags your team can actually act on. Dealerships never leave their system of record; they just see a clean signal on whether to proceed, step up, or take a harder look. What’s powering all this under the hood Fraud Protect sits on Experian’s proven fraud and identity stack: Precise ID® – Experian’s identity risk and fraud platform, using machine learning to detect first-party, third-party and synthetic identity fraud. Datos Insights named Experian’s First Party Fraud Scores a Silver Medalist for Best First-Party Fraud Innovation in its 2025 Impact Awards CrossCore® – Experian’s fraud and identity orchestration platform, recognized by KuppingerCole as an Overall, Product, Innovation and Market Leader in Fraud Reduction Intelligence Platforms. These aren’t just our claims. The superiority of Experian’s fraud prevention capabilities has been recognized by reputable industry experts, such as Datos Insights, Juniper Research, KuppingerCole, and others—proof that the analytics you rely on have been tested and validated outside of your four walls. What this actually means for dealers Boil it down, Fraud Protect gives you: Streamlined identity proofing : Customers complete license scan, selfie and OTP verification on their own phone via a secure link from your CRM—no clunky hardware, no awkward workflows. And it works well in-person or remote. Stronger fraud detection up front: Identity, device and contact points are tied together and evaluated using Experian’s fraud analytics, helping you spot high-risk identities before the deal advances. Simple, actionable results for your team: Instead of raw data, users see clear scores, icons and flags in the CRM, so they know when to green-light, step up verification or escalate friction. Documented protection: Creates a consistent, documented identity verification trail that helps show lenders you’ve met your obligations to appropriately verify customers—supporting a stronger fraud mitigation posture and helping reduce fraud-related charge-offs and disputes. You get more confidence in the deals you say “yes” to, and a better footing when questions come up later. When to put Fraud Protect on the table Fraud Protect is worth a serious look if you’re seeing: More ID-related issues or suspicious stories at the desk Growth in remote, digital or hybrid deals where you can’t rely on in-person cues Pressure from lenders or OEMs to tighten identity verification and fraud controls Increasing lender chargebacks or funding challenges tied to suspected fraud or identity concerns Lack of clear criteria for determining which deals to scrutinize more closely and which to fast-track Internal concern about first-party or synthetic fraud sneaking through as “good” deals In those scenarios, Fraud Protect gives you a way to upgrade your identity verification to something lenders recognize and customers are already used to from other digital experiences. Explore Fraud Protect: https://www.experian.com/automotive/fraud  

Many across the industry have been waiting to learn how EV activity has changed now that the EV tax credit has been eliminated. According to Experian’s State of the Automotive Finance Market Report: Q3 2025, the EV market saw a sharp uptick in transactions as many locked in these benefits before they disappeared, though it remains to be seen what the market will look like in the fourth quarter. With the EV market expanding and more models entering the lineup, shoppers also benefited from various options across a wider range of price points within their budget. Even so, many opted to lease a new EV rather than purchase it. More than 56% of consumers leased an EV in Q3 2025, up from 46.43% last year. The gap between the number of EV leases and purchases reflects several underlying factors, one of them being this option likely offered lower upfront costs and monthly payments. For instance, the average monthly payment for a lease was $172 lower than a loan for an EV in Q3 2025. Where EV performance stands in the broader market When looking at the data from a larger perspective, EVs made up 25.31% of the total new lease market, compared to 17.69% a year ago. The alternative fuel type also comprised four of the top ten leased models, with Tesla Model Y (4.35%) and Tesla Model 3 (2.58%) as the top two. They were followed by the Honda Prologue (1.78%) as the fifth most leased model and the Hyundai IONIQ 5 (1.49%) as the ninth. EVs making up nearly half of the top ten leased models in the overall market underscores how quickly consumer preferences can shift and how incentives play a role in purchasing behavior. Consumers’ comfort with EV technology continuing to grow paired with the steady expansion of compelling models across segments also highlights the momentum that is being brought to the overall automotive industry. As the market continues to move forward, the interplay of expiring incentives, more model availability, and a strong desire for leasing shows how EVs have steadily become a more prominent consideration. Leveraging these insights will help automotive professionals best position themselves to support consumers navigating an increasingly dynamic landscape. To learn more about EVs and other automotive finance trends, view the full State of the Automotive Finance Market Report: Q3 2025 presentation on demand.

E-commerce is booming. Global online sales continue to rise with forecasts predicting growth to $7.89 trillion by 2028.1 Unfortunately, with any lucrative market comes fraudulent activity. As e-commerce grows by leaps and bounds, so do fraud incidents. E-commerce fraud is defined as any illegal or deceptive activity conducted during an online transaction with the intent to steal money, goods or sensitive information. As digital shopping flourishes, the tactics criminals use to exploit vulnerabilities in payment systems, customer accounts and merchant operations is rapidly expanding. According to Experian’s tenth annual Identity & Fraud Report, nearly 60% of U.S. businesses reported higher fraud losses in 2025, driven by more sophisticated attacks and legacy security gaps. The same report highlighted the damage from e-commerce fraud goes beyond the loss of revenue, directly impacting consumer trust. The survey found that only 13% of consumers feel fully secure opening new accounts. Chief amongst their concerns, 68% of consumer worry about identity theft, while 61% are fearful of stolen credit card data.2 The constant threat of e-commerce fraud has placed tremendous pressure on merchants and retailers to take robust steps in mitigating these attacks. In addition to protecting the bottom line, such measures are essential to earning consumer trust. According to Experian’s merchant-focused edition of our Identity & Fraud Report, consumers consistently perceive physical and behavioral biometrics tools as the most secure authentication methods — yet merchants are slow to adopt them. This gap highlights a key opportunity for businesses to strengthen security practices and build trust without adding friction to the user experience. After all, 74% of consumers say security is the most important factor when deciding to engage with a business.3 E-commerce fraud comes in many shapes and sizes E-commerce fraud is an umbrella term for a variety of attacks that target merchants and retailers. Amongst these is chargeback fraud, which occurs when a customer makes a legitimate purchase and then falsely disputes the charge with their credit card issuer, claiming the item never arrived or the transaction was unauthorized. The merchant loses both the product and the payment. Another is account takeover fraud, which happens when cybercriminals gain access to a customer’s online account, often through stolen login credentials, and use it to make unauthorized purchases, change shipping details or withdraw loyalty points. In card-not-present (CNP) fraud, attackers use stolen credit card information to make purchases online or by phone, where the physical card isn’t required. Because identity verification is limited, merchants bear the financial losses. This type of fraud includes BIN attacks, targeting the Bank Identification Number (BIN) on a credit or debit card that identifies the issuing financial institution. The goal of a BIN attack is to discover valid card numbers that can be used for fraudulent transactions. There are also refund fraud attacks, which involve scammers exploiting return or refund policies — such as claiming an item didn’t arrive or sending back a different or counterfeit product for reimbursement. Together, different forms of e-commerce fraud cost businesses billions annually, demanding strong fraud detection, authentication and monitoring systems to combat them. E-commerce fraud prevention should be a priority for every merchant and retailer. E-commerce fraud prevention: Ways merchants can fight back Merchants report the highest rates of new account fraud, yet it ranks just 15th among their active investments for 2025.4 While fraudsters continue to find new and innovative ways to attack, merchants and retailers can better prepare by following industry best practices in e-commerce fraud prevention: Chargeback fraud: When it comes to preventing and managing chargeback fraud, merchants should ensure customers are fully aware of return and refund policies. Utilize Address Verification Services (AVS) and Card Verification Value (CVV2) verification for online and over-the-phone transactions to establish the validity of a purchase. Keeping meticulous records of all transactions can serve as compelling evidence to defend the transaction. Leverage advanced fraud detection tools, such as tokenization and machine learning and AI fraud detection solutions that flag potentially fraudulent transactions and detect suspicious spending patterns and anomalies. Account takeover fraud: Merchants can minimize the risk of account takeover fraud using holistic, risk-based identity and device authentication, as well as behavioral analytics or targeted, knowledge-based authentication. End-to-end fraud management solutions can help reduce manual processes and remove the risk of information silos. Card-not-present fraud: Mitigating the risk of CNP fraud can be accomplished by implementing additional security measures at the time of transaction. These can include requiring verification information, such as a CVV code or a billing zip code to further authenticate the card holder’s identity. Advanced e-commerce fraud prevention tools To stay ahead of the fraudsters, merchants and retailers should take a multilayered approach to e-commerce fraud prevention that takes advantage of the latest, most advanced tools.  At Experian®, we offer innovative fraud management solutions that provide the right level of security without causing customer friction. Three advanced e-commerce fraud prevention tools that every merchant should have in their arsenal include: Experian LinkTM: This tool enhances credit card authentication by linking the payment instrument with the digital identity presented for payment. Experian Link enables merchants to quickly and accurately identify legitimate customers to reduce friction and increase acceptance rates, reduce operation costs by preventing fraudulent credit card use, make better risk decisions to protect legitimate customers, limit false declines and identify potential fraudsters. Behavioral analytics: With the growth of AI, fraudsters can now replicate static data, but mimicking human behavior remains challenging. Behavioral analytics detects subtle interaction patterns that are extremely difficult for GenAI-driven fraudsters, including fraud rings and next-generation fraud bots, to replicate. Powered by NeuroID, our behavioral analytics capabilities help organizations proactively mitigate fraud, reduce false positives and streamline risk detection, ultimately creating a secure and frictionless experience for trustworthy users — while locking out fraudsters earlier. Precise ID®: This advanced tool enables businesses to pursue growth confidently by providing robust, real-time identity verification, as well as the ability to accurately identify a wide range of fraud risks including identity theft, synthetic identity and first-party fraud, along with tools that facilitate confirmation when risks are detected. The threat of fraud never stops   Merchants and retailers are under a constant and unrelenting threat of attacks by fraudsters. Vigilance is required to protect the customer experience and the bottom line. Fortunately, innovative tools are leveling the playing field, offering much needed e-commerce fraud protection. To learn how Experian can help you combat fraud and meet consumers’ demands for trust and privacy, explore our best-in-class fraud management solutions and download our latest report on closing the trust gap in e-commerce. Explore our solutions Download report 1https://www.shopify.com/blog/global-ecommerce-sales# 2https://www.experian.com/thought-leadership/business/identity-and-fraud-report 3https://www.experian.com/business/solutions/fraud-management 4https://us-go.experian.com/Identity-and-fraud-insights-for-merchants

Every credit decision relies on data, but traditional credit information may capture only part of a consumer’s financial story. Some of that story is reflected in credit reports, the loans repaid, the cards managed, and the steady progress toward financial goals. Others live quietly in bank statements and transaction histories, like the rent paid on time, the savings set aside, and the bills managed responsibly. Yet for millions of consumers, that second story has rarely been part of the credit conversation. Expanding the credit conversation can give lenders and financial institutions an edge, helping them separate genuine risk from missed opportunity. In a lending environment defined by volatility and evolving consumer habits, having a more complete picture of each applicant can help make the difference between sustainable growth and risk management. At the same time, open-banking frameworks and consumer-permissioned data have made it possible to understand financial health more clearly than traditional models. That’s where Experian’s Credit + Cashflow Score comes in. A unified view of credit and cash flow  The Credit + Cashflow Score is the first-of-its-kind model combining multiple data sources into a single score. Based on our pre-production analytics, early results demonstrate a 40% improvement in predictive accuracy compared with conventional credit models. It unites our proprietary and industry-leading credit data, alternative credit insights, 24 months of trended behavior, and consumer-permissioned cashflow information into a single score ranging from 300 to 850.* This goes beyond cashflow-augmented models that rely primarily on transaction data layered over credit files. The result is a data-rich assessment of creditworthiness that allows lenders to strengthen portfolio performance, maintain disciplined risk management, and help identify qualified borrowers that traditional credit models might overlook. Better risk control and stronger growth  Today’s lending landscape is being reshaped by rising interest rates, increased capital costs, and heightened regulatory oversight. These pressures are prompting institutions to tighten underwriting standards and reassess risk strategies as they navigate an uncertain economy. At the same time, competition for qualified borrowers continues to intensify, creating pressure to drive sustainable growth without compromising credit quality. Meanwhile, on the consumer side, people are earning income through gig work or multiple income streams and using alternative financial products. According to our recent market estimates, 62 million U.S. consumers are thin-file or credit-invisible1. This is making it harder for lenders to assess true financial capacity using credit data alone. Traditional credit scores continue to remain important, but they can potentially miss key indicators of stability and affordability that appear only in transactional data. The Credit + Cashflow Score bridges that gap, helping enable lenders to expand approvals responsibly while maintaining disciplined risk management. See what's next  As credit markets continue to evolve, lenders are looking for new ways to balance growth with risk. Having the whole financial picture may allow organizations to grow stronger portfolios, reach more qualified borrowers, and bring financial opportunity to more people. Partner with Experian to leverage decades of credit expertise, the nation’s largest alternative credit bureau, and industry-leading open-banking solutions to help lenders innovate responsibly. The Credit + Cashflow Score is built to deliver measurable performance lift, model transparency, and ease of integration through the Experian Ascend Platform. Learn more about the Experian Credit + Cashflow Score * New score available in pre-production for analytics 1https://www.experian.com/thought-leadership/business/the-roi-of-alternative-data 

Experian Automotive Series | What Auto Marketers Are Prioritizing in the Second Half of 2025 As we close out our four-part series on what auto marketers are prioritizing in the second half of 2025, we’re shifting gears from strategy to execution. It’s time to explore how marketers are operationalizing data, seeking clarity, and building emotional connections that deepen relationships with customers. With the end of the year’s competitive automotive landscape, clarity and connection aren’t just buzzwords—they’re the cornerstones of growth and loyalty for 2026. Let’s start by exploring how clarity empowers today’s marketers to steer their strategies with control. Clarity: Putting marketers in the driver’s seat Data-guided auto marketers who leverage data insights have a clearer understanding of where consumers are on their car-buying journey. You can learn whether car buyers are gearing up for: A longer commute and want an electric vehicle (or a hybrid vehicle).1 Expanding their family and want a top-tier safety rating with cargo space. Factoring in market trends and wanting to be more economical.2 Creating a new and loyal customer base requires dealers, marketers, and OEMs to focus on clarity and connection. This will be more relevant than ever in the final days of 2025. Gone are the days when dealers and agencies used platforms and tools they did not understand. More businesses are simplifying their services and products by offering guides, Artificial Intelligence (AI) tools, tutorials, consultants, and webinars. At Experian Automotive, we're here to do just that, bringing clarity to our auto solutions, such as the Experian Marketing Engine (EME). While the EME tool has robust and dynamic data, two of our most widely used features — AutoAudiences and AutoInsights — stand out for their impact. Let’s break them down in the simplest way: AutoInsights helps marketers define where, what, and how. AutoAudiences helps reach who to target and when they might be in the market. For further clarification, savvy marketers leverage AutoInsights to strategize and understand their market, then activate AutoAudiences to curate marketing opportunities. With these tools empowering clarity, it’s equally important to focus on building genuine connections with car shoppers. Connection: Personalized experiences that drive sales Building a strong connection starts by truly understanding what consumers need and where they are on their car-buying journey. It’s important to know how consumers plan to use their vehicle and how they have serviced their cars in the past (or how they plan to service them in the future). By focusing on these details, marketers and dealerships can create more meaningful relationships and deliver helpful, relevant experiences that customers value. On the journey to better connections, consider your customers’ communication preferences, 2026 plans, and affordability.3 “Human connection...separates good stores from great ones,” notes Dealer Principal, Matt Birckhead at Sir Walter Chevrolet4 , while General Manager, Michael Wood at Jaguar Land Rover Virginia Beach collaborates with his Digital Director, Ryan Montville, to generate vehicle specs and feature descriptions that connect emotionally with target buyers 5 Key Takeaway: Automotive marketers who leverage data-informed clarity and authentic customer connection are best positioned to drive growth and loyalty in the final days of 2025 into 2026. By using innovative tools like Experian Marketing Engine, focusing on consumer needs, and personalizing every interaction, dealerships, agencies, and OEMs can optimize campaigns and foster lasting relationships. Mastering clarity with data and building emotional connections are the keys to success in automotive marketing today. Ready for clarity and connection with Experian data? Lead the way in creating customer-first experiences that fuel long-term growth. Connect with Experian Automotive and start driving measurable impact. Learn More https://www.coxautoinc.com/insights-hub/q3-2025-ev-sales-report-commentary/ https://www.experian.com/automotive/auto-credit-webinar-form https://news.dealershipguy.com/p/inside-q4-s-new-vehicle-trends-and-how-dealers-are-adjusting-2025-10-28 https://news.dealershipguy.com/p/one-price-vs-negotiation-what-four-operators-say-really-builds-trust-and-gross-2025-10-16 https://news.dealershipguy.com/p/5-powerful-chatgpt-hacks-car-dealers-are-using-to-supercharge-their-business-insights-2025-09-19

Today’s consumers expect more from their banks, credit unions, and financial services providers than just basic transaction services. According to an MX Technologies report, one in three consumers feels providers do not do enough to support their financial needs. At the same time, 50% of banking consumers expect personalized offers for tools, products, and services to help them reach their financial goals.1 The same study found that more than half want financial providers to help them better manage their finances.  As customers increasingly turn to their financial institutions for trustworthy information on achieving financial wellness, these institutions have a great opportunity to offer value-added financial services that meet those needs. Adopting a customer-centric approach—one that enables them to provide the specific resources and guidance customers are seeking—is essential for fostering stronger relationships. This, in turn, can be crucial for driving growth, increasing market share, and gaining a competitive edge.   What are value-added financial services?  Value-added financial services are offerings that go beyond basic financial products, such as bank accounts or loans, to provide additional benefits, convenience or personalized support to customers. These services aim to improve customer satisfaction and set a financial institution apart from competitors, and can include features such as loyalty programs, advanced fraud prevention, data analytics, online access to services and financial planning tools.   How value-added financial services can build engagement and trust  Savvy financial institutions are adapting to the evolving demands of consumers by offering innovative tools that help their customers make informed financial decisions and enhance their financial literacy.  Offering value-added financial services, such as management and planning tools, along with advanced security and fraud protection, provides financial institutions with an essential way to increase customer engagement and foster greater loyalty. By providing deeper insights, better personalization, and reliable financial experiences, institutions can help customers manage their financial health more effectively.  Addressing growing concerns over identity threats  Fraud and identity theft are top-of-mind concerns for consumers these days as incidence of such attacks are on the rise. A recent Security.org study found that a staggering 60% of U.S. credit card holders have been victims of fraud, with 45% experiencing multiple instances.2  Meanwhile, the U.S. Federal Trade Commission (FTC) received over 1.1 million complaints of identity theft in 2024, resulting in financial losses exceeding $12.7 billion.   For financial institutions, this creates an opportunity to address consumer concerns through value-added financial services. Solutions that help detect fraud early and monitor credit health can provide invaluable peace of mind. Institutions that offer services such as credit monitoring, identity alerts, and financial management tools can help customers stay protected while also opening the door to valuable recurring revenue streams.  Best-in-class value-added financial services  Experian® is uniquely positioned to support financial institutions with best-in-class value-added financial services. By leveraging a complete suite of financial health solutions, institutions can engage, educate and empower customers to be more in control of their financial lives.  Our suite of solutions include:  Credit monitoring and alert solutions – These advanced tools help increase retention and keep consumers engaged with robust credit monitoring that detects potential fraud and provides alerts, enabling them to respond more quickly.   Credit report and score solutions – Provides customers with credit information and guidance to better understand, manage and strengthen their financial well-being.  Financial management solutions – With a suite of comprehensive credit and financial management tools, financial institutions can improve a customer’s experience by providing a single platform to link accounts across different institutions and unify financial data. As customers regularly engage with the platform to manage both short and long-term financial goals, institutions can improve longer-term retention.   Identity monitoring and alert solutions – This tool helps increase consumer engagement with continuous personal data monitoring and alerts. It empowers consumers to spot potential fraud, assess risks, and respond before they become a victim of identity theft.  Identity restoration services – In the face of rising incidence of identity theft, this powerful suite of restoration services helps consumers navigate the complex identity recovery process and mitigate future financial harm.  Gaining a competitive advantage   As consumers increasingly demand exceptional customer service, offering innovative products and personalized solutions is key to preventing customer churn. When financial institutions deliver value-added financial services, they gain a competitive advantage.  Failure to deliver the service, convenience, and personalized products or tools that consumers demand risks losing them to other providers. According to J.D. Powers, up to 54% of consumers will leave their bank in the next year, costing institutions millions. Salesforce reported that 72% of consumers indicated that better deals made them switch to another brand.  Financial institutions that offer innovative value-added financial services benefit from continuous engagement that helps build trust and loyalty while generating recurring revenue through subscription-based offerings.   Our innovative offerings saw:  Credit alert login rates ten times higher than the financial services industry benchmark.  Email open rates for alerts more than two times that of the national average for financial services.  Top-performing clients with over 25% of their enrolled customers log in to the portal at least once per month.  Consumers are opening twice as many credit cards and three times as many savings accounts when using regularly personalized features.  Reasons to partner with us  When it comes to providing accurate, real-time financial data that can lead to crucial insights for better decision making, Experian is an ideal partner. Our personalized, value-added financial service can be seamlessly integrated and embedded into your existing systems, making it easier for you to meet consumer demands for tools that help them make informed financial choices and improve their financial literacy.  Learn more about our value-added financial services 1 https://www.experian.com/content/dam/marketing/na/thought-leadership/business/documents/infographic-fostering-relationships-to-unlock-growth.pdf 2https://www.experian.com/blogs/insights/infographic-stronger-customer-relationships/

After a borrower opens a mortgage, their financial profile doesn’t stay static. Credit scores, debt-to-income ratios (DTI), and annual incomes evolve—sometimes positively, sometimes negatively—depending on both the individual borrower’s specific behavior and situation, as well as broader economic conditions, including factors like unemployment and interest rates. When we factor in rising escrow costs for home insurance and property taxes, the picture becomes even more complex.   Unfortunately, traditional market data for both private label and agency MBS, as well as “servicing” datasets generally used to build analytics for whole loan strategies, contain virtually no information regarding a borrower’s current credit profile. The current pay status of the subject loan is sometimes provided.  However, credit score and DTI values (if provided at all) are as of the origination date only. No information is provided regarding the borrower’s home insurance or property tax premiums.  In other words, as a mortgage loan seasons and the borrower’s credit profile drifts as new debts are added or paid off, payments on auto loans, student loans, credit cards, even other mortgages on the subject property are made or missed, and home insurance policy costs double (or triple!) in some cases, MBS investors using traditional market data only are truly flying blind with respect to the borrowers’ current credit health. Fortunately, more complete alternatives to supplement traditional market data exist. In this article, we’ll analyze Experian’s Mortgage Loan Performance (MLP) data, a monthly-refreshed join across loan level performance, borrower credit profile and property data for all US mortgages since 2005, to explore borrowers’ credit profile drift since loan origination.  This dataset contains current credit scores, tradeline balances and performance, escrow account information, and modeled income for all borrowers.  Section 1: Credit Score Migration Since Origination — Who Improves and Who Slumps?  Using the MLP dataset, we examined current and at-origination borrower credit profiles for over 42 million mortgages originated from January 2020 through July 2025.  Segmenting the data by different mortgage products shows distinct score migration patterns since loan origination as illustrated in Figure 1:  Conventional Loans (FNMA/FHLMC):   Conventional borrowers have experienced strong positive gains in credit score since origination for the 2020–2022 vintages with average VantageScore 4.0 migration of +11 to +22 points  For the more recent 2023-2025 vintages, borrowers have experienced flat or negative drift of averaging -6 to +2 points  FHA Loans:   FHA borrowers have experienced mostly negative VantageScore 4.0 drift of -6 to -19 points, with the steepest decline to date in the 2022–2023 vintages   VA Loans:   We see a positive drift for early vintages, especially 2020 to 2022 vintages, but a slightly negative drift for more recent vintages of -1 to -4 points.  Non-Agency Loans:    Similar to conventional loans, we see a positive credit score drift for 2020–2022 vintages, turning negative for 2024–2025 with an average drift of -1.5 to -4 points  Figure 1:  Vantage 4.0 Migration Drift Since Origination[1] Key Insights: Over the past 6 years, Conventional borrowers have generally improved their credit profile post-origination, notwithstanding small dips to-date for the last couple vintages.  On the other extreme, 4 of the 6 last FHA vintages have experienced credit score deterioration to date.   Beyond the obvious increase in delinquency and default risk due to deteriorating credit scores, a borrower’s ability to refinance efficiently is also impacted by credit score deterioration. A loan’s propensity to default or voluntarily refinance is  influenced by the borrower’s current credit score, which is absent from traditional market data, though present in MLP.  In this way, current credit score is a critical field for both nonagency and agency MBS analyses. Section 2: DTI and Income   As illustrated in Figures 2 through 4, even as incomes rise, DTI often climbs faster, signaling potential borrower stress:  Example (FHLMC):  2020 Vintage: DTI +5.9 points, Income +$24K 2023 Vintage: DTI +23.5 points, Income +$28K Figure 2:  DTI and Income Drift Since Origination for all mortgages  Figure 3:  DTI and Income Drift Since Origination for Freddie Mac mortgages Figure 4:  DTI and Income Drift Since Origination for GNMA, VA mortgages  Insights: Across all loan types, on average, borrowers are earning more relative to when they opened the loan but also taking on additional obligations over time at an even faster rate, which inflates their debt-to-income ratio.  Particularly striking is the DTI drift for the 2023 GNMA VA vintage, rising over 30 points in two years!  In addition to elevated risk of delinquency and default, elevated DTI also reduces the borrower’s ability to refinance efficiently by affecting the borrower’s ability to qualify for competitive refinancing rate.  Investors relying solely on traditional market data have no vision into the borrower’s current DTI, thereby limiting their ability to model and manage both default and voluntary prepayment risk.   Section 3: Escrow Pressure—Taxes and Insurance Surge  As illustrated in Figure 5, MLP data reveals that from 2021 to 2024:   Taxes haves increased by an average of 28.8%  Home Insurance rates have increased by an average of 54.4%, becoming the fastest-growing home ownership expense within this period  Higher escrow payments squeeze borrower budgets, driving increased delinquency risk and decreased affordability. Traditional market data contains no information regarding borrowers’ tax or insurance premium burdens. Figure 5: Average escrow payment increases from 2021 to 2024 Conclusion  Score migration, evolving income and DTI, and escalating escrow & tax costs create a dynamic risk environment for borrowers. Borrowers’ constantly changing credit health drives both credit (likelihood of default) and voluntary prepayment (credit score and DTI influence both ability and incentive to refinance) risks. In this context, monitoring borrower credit and income post-origination is critical.  Traditional market data for both private label and agency MBS contains no information related to a borrower’s current credit score, DTI, income or tax & escrow burden. Experian’s Mortgage Loan Performance dataset contains all this information, at the loan level, for ~100% of the US mortgage market, enabling better segmentation, predictive modeling, and risk management for both credit and prepayment risk.  Read our previous blog about Residential Mortgage Prepayments [1] All statistics are derived from Experian's Mortgage Loan Performance (MLP) Dataset

Debt collection is rapidly evolving. Traditional methods are becoming increasingly ineffective as consumer preferences shift, regulations tighten and operational inefficiencies lead to bottlenecks.Agencies and debt buyers that rely on outdated strategies are experiencing the consequences: lower recovery rates, increased compliance risks and weaker consumer engagement. However, there’s good news — modern tools, powered by advanced data, analytics and digital platforms, are transforming these challenges into opportunities. Common collections challenges: Real-world scenarios In our latest e-book, we examine four fictional scenarios that illustrate how collections teams are addressing today’s primary challenges by updating their methods. Here’s a preview: Smarter segmentation = Higher recovery: Sally, head of collections at Midwest Debt Solutions, realized her team’s one-size-fits-all approach was costing them. By adopting advanced segmentation powered by data and analytics, she shifted her focus from chasing low-value accounts to targeting those most likely to repay, boosting recovery rates and team morale. Better data in, better decisions out: Jerry, a risk analyst at Bay & Associates, relied on a legacy credit model that overlooked crucial alternative signals. By incorporating trended credit data, utility payments and behavioral signals, his team significantly enhanced their prioritization approach and forecasting accuracy. Modern engagement for the modern consumer: John, a collections agent, was having trouble reaching consumers through traditional methods, such as phone calls and letters. With a digital self-service platform, John’s team gained real-time insight into engagement preferences and was able to connect through the channels consumers use, like SMS and email. Personalization at scale: Rachel, an account manager at Union Collections, knew manual processes were slowing her team down. By implementing personalized communications and multichannel outreach, they enhanced consumer experiences, increased repayment rates and minimized compliance risks — all while saving time. Why it matters These scenarios share a common thread: with the right tools, data and strategy, collections teams can turn today’s pain points into measurable progress. At Experian®, we help agencies: Prioritize accounts more effectively with advanced segmentation. Make smarter predictions using dynamic, modern scoring models. Streamline operations with self-service platforms and automation. Strengthen consumer relationships with personalized outreach. Download the e-book Want to dive deeper into each use case? Access the full e-book to learn how forward-thinking agencies are adapting their collections strategies to recover more, spend less and build stronger consumer relationships. Download the e-book

Delivering a superior customer experience has become the key goal for nearly every business across almost every industry. The banking industry is no exception. A recent trend highlighting the importance of customer experience is the drop in customer loyalty. Customer expectations are higher than ever, heightening competition between traditional banks and newer market entrants. This creates a need for banks to stand out and succeed by offering a superior customer experience. That experience starts with customer engagement in banking. According to a recent Forrester study, only two out of 10 retail banks regularly engage with customers to enhance their experience. The same study found that when retail banks consistently focus on improving the customer experience, they tend to grow more than three times faster than their competitors that do not. Forrester also found that over 70% of retail banks consider digital customer engagement essential for their current success and future growth.1 The key to customer engagement in banking: understanding the customer The good news for banks is that when they engage with customers by offering the services and guidance they want, those customers tend to respond with increased loyalty. Research indicates that 54% of customers rely on their banks to help them achieve their financial objectives. Most encouragingly, this same research indicates that 71% of actively engaged customers are likely to stay with their bank for the foreseeable future.2 At the heart of today’s evolving efforts to retain customers and build stronger loyalty are innovative tools that deliver on consumer demand for greater personalization and digital experiences in day-to-day engagement with the bank. With rising interest rates and more choices in financial services, consumers are actively seeking better rates for savings accounts, loans, and credit products. A 2024 Salesforce survey reveals that 72% of consumers are motivated to switch providers in search of better deals.3 Another report indicates that 50% of banking customers expect personalized offers for tools, products, and services to help them achieve their financial goals.4 In response to this trend, banks have an opportunity to go above and beyond to attract and retain customers by focusing on delivering exceptional customer service, innovative product offerings and personalized solutions to prevent customer churn. This requires embracing innovative approaches to engagement. For example, banks can leverage customer engagement services that empower customers to better manage their financial well-being. Such services might include smart tools that provide timely alerts and reminders, enabling customers to avoid delinquency and stay current with their payments. Strategies for enhancing engagement Banks aiming to enhance customer engagement can achieve this by utilizing data-driven insights, innovative technologies and customized partner solutions to foster loyalty and long-term trust. Customer  engagement strategies should consider the following: Omnichannel experience – Banks aim to deliver a seamless, consistent experience across all touchpoints, whether it is a branch, mobile device, online platform, or contact center. Customers should be able to start an interaction on one channel and finish it on another without any friction. Connecting physical and digital touchpoints builds trust, convenience, and loyalty. Financial wellness tools and empowerment - Banks can utilize customer engagement services to provide customers with smart financial management tools, including budgeting dashboards, automated savings features, credit score monitoring, and investment advice. Providing customers with real-time insights into their financial health enhances engagement and fosters long-term loyalty. Identity protection and security tools – Banks can build trust through proactive identity protection, continuous monitoring and alerts that help customers feel protected and in control. Customer education and financial literacy – The bank can engage customers through educational content like webinars, tutorials, and in-app tips that help clarify financial products and promote better decision-making. Educated customers tend to be more confident, satisfied, and more likely to expand their relationship with the bank. Personalization through data and analytics – Banks can utilize data to deliver highly personalized recommendations, product offers, and experiences specific to individual life stages, behaviors, and goals. Predictive analytics can forecast needs, such as suggesting mortgage advice when spending and saving habits indicate a possible interest in homebuying, thus improving relevance and connection. It can also alert customers about savings opportunities. This kind of proactive engagement helps build stronger relationships. Customer engagement services: the key to driving revenue growth and enduring relationships At Experian®, we offer world-class customer engagement services that can enable banks to meet customer expectations and build stronger, long-lasting relationships. By providing tailored financial services and credit education, banks can help customers reach their financial goals. At the same time, banks can build stronger trust by empowering customers to avoid risks and take action to recover when identity theft occurs. All our solutions can be smoothly integrated into a bank’s existing ecosystem, making it quicker and easier to deliver these services to customers. As banks continue to seek ways to deliver exceptional customer experiences, it is essential to offer innovative tools and services that better engage customers. Customer engagement in banking is crucial for attracting and retaining clients. When banks go the extra mile to meet the evolving needs of customers, they are repaid with greater loyalty and long-term trust.  Learn more about our customer engagement services Download the infographic 1https://www.kameleoon.com/blog/18-stats-understand-future-cx-optimization-and-banking2https://www.postgrid.com/customer-engagement-strategies-banking/3https://www.experian.com/content/dam/marketing/na/thought-leadership/business/documents/infographic-fostering-relationships-to-unlock-growth.pdf4https://www.experian.com/content/dam/marketing/na/thought-leadership/business/documents/infographic-fostering-relationships-to-unlock-growth.pdf

Why data analytics matters more to fintech lenders Unlike traditional financial institutions, fintechs grow through rapid experimentation. They build, iterate and deploy at a pace that rewards agility but often exposes gaps in visibility. That’s why unified, trusted data has become essential infrastructure. Many fintech leaders note that building technology is rarely the barrier; the real challenge is ensuring their data can move as quickly as their decisions. Analytics plays a central role in closing that gap by providing real-time insight that supports speed, accuracy and confidence. Fintech analytics goes far beyond reporting. It’s about connecting credit, cash flow and behavioral data to reveal intent, detect risk early and personalize offers. The leaders in this space aren’t those with the most data, but those who can turn it into confident, compliant action. How fintechs are using analytics to stay ahead 1. Managing risk in real timeFintech lenders are increasingly recognizing that the boundary between fraud and credit risk is disappearing. Rather than treating them as separate disciplines, leading firms are developing unified approaches that detect early behavioral signals that indicate financial stress or potential fraud well before losses occur. By fusing transactional and credit data, they are creating adaptive risk models that evolve in real time and deliver faster, more confident decisions.  2. Unlocking value from cash flow and alternative dataFintechs are finding that cash flow tells a richer story than credit alone. By layering bank transaction data on top of bureau insights, many have improved model accuracy and expanded their reach to consumers who might otherwise be overlooked. Analysis of BNPL activity, primary account behavior and income patterns is also helping lenders tailor offers with greater precision and fairness.  3. Accelerating innovation with governed AIAI is driving model development and decisioning speed, but governance remains a universal concern. Fintech leaders acknowledge the challenge of balancing innovation with regulatory transparency, emphasizing the need for faster validation, clearer audit trails and explainable outputs. The next frontier isn’t just building smarter models but ensuring those models are trusted by compliance teams, investors and consumers alike. Persistent pain points in fintech data integration For many fintechs, they are challenged by knowing, that the data exists, but the stitching between sources slows everything down. Even the most advanced fintechs face familiar challenges: Fragmented data ecosystems: Transactional, credit, and behavioral data often live across disconnected systems, creating blind spots and latency. Data quality and recency: Incomplete or outdated information weakens the accuracy of AI models. Scalability and governance: Rapid growth amplifies infrastructure strain and regulatory complexity. Where Experian gives fintechs an edge Fintechs have a need for control, speed and trust — a balance that’s difficult to achieve with point solutions or legacy integrations. That’s where Experian differentiates. The Experian Ascend Platform™ brings data, analytics and decisioning together in a single, secure environment so fintechs can: Access unified, model-ready data that combines credit, cash flow and alternative sources. Build, test, and deploy predictive models through sandbox capabilities that mirror real-world conditions. Enhance transparency and compliance with built-in AI governance and audit tools. Integrate seamlessly through flexible APIs designed for engineering-led teams. Several fintech leaders have stated that Experian’s Ascend platform’s performance and transparency help them move faster without compromising oversight, giving them the speed of an in-house build with the reliability of a proven data partner. The takeaway: from data collection to confident decisioning For fintech lenders, analytics is no longer a back-end function. It is a strategic capability that drives every decision. Those who unify their data, operationalize insights responsibly and automate decisions with transparency will set the pace for the next wave of credit innovation. Experian continues to partner with leading fintechs to transform fragmented data into real-time intelligence, powering smarter lending, sharper risk controls and stronger customer experiences built on trusted data. Discover how Experian’s fintech solutions are helping fintechs harness analytics to accelerate growth and innovation. Learn more

As we enter the end of the year (and holiday sale season), auto marketers are motivated to deliver “Hail Mary” plays —bold, high-impact campaigns designed to resonate with today’s consumers and drive last-minute wins. This post is the third installment in our Experian Automotive Series, spotlighting what leading marketers are prioritizing in the second half of the year. Our first post unpacked how to measure marketing effectiveness using GA4 and attribution strategies. The second post focused on consumer communication—highlighting how texting, direct mail, and zip code targeting are reshaping engagement. Now, we turn our attention to building Fourth Quarter wins with a marketing playbook. From assigning a campaign “Quarterback” to leveraging CPO and service strategies, this post outlines four actionable plays to help you finish the year strong. Playbooks aren’t just reserved for football season. Well-prepared auto marketers are leveraging strategic frameworks to execute their marketing campaigns seamlessly. Whether it’s navigating inventory shifts, optimizing service campaigns, or refining audience targeting, building a marketing playbook tailored to your goals can turn fourth-quarter pressure into performance. Before you close out 2025, make sure the following plays are called: 1) Appoint a Dedicated in-house “Product User” (aka ‘Quarterback’) Just like a winning football team assigns key roles to execute plays seamlessly, successful marketers must have a go-to leader who knows the tools and resources they’re leveraging. This designated resource can rally your team, collaborate on the right plays, and determine the audiences to target—ensuring your products score big with every campaign. Pro-Tip: With Experian Marketing Engine, success comes when a dedicated Lead user can view their AutoInsights and consistently download AutoAudiences. 2) Data with Direction: Guide Every Play The best football players and the best marketers don’t just ‘set’ a plan and ‘forget’ it. They study footage or analyze trends and adjust based on the challenges they face. As a result, marketers need more than one data source. Passes and assists matters—Autotrader notes, "Today's average car buyer has 62 touchpoints on the path to purchase, but the average dealer only tracks 2.” 1 Dealers, Agencies, and OEMs need to interpret multiple data sources, adopt multi-touch attribution (MTA), and adjust their marketing plan. Being data-guided means using insights with context, deploying targeted campaigns, estimating ROI across touchpoints, aligning with all available data sources— and knowing when to call an audible. Pro-Tip: Stay ahead of the curve and measure the effectiveness of your automotive campaigns with Experian Auto Solutions. 3) Consider CPO and Service as Part of Your ‘Special Teams’ Just like kick returns and field goals can decide a game, your CPO and service strategies can create a margin of victory for a dealership. CPO and Used vehicles are in high demand. Review the stats: CPO sales increased 7% MoM from August and are running 2.6% higher YTD when considering the same period from last year 2 Used cars outsell New ones 2:1 3 When it comes to Service, the cost of a repair order (RO) is increasing, and dealers need to stay agile. According to Car Dealership Guy, “The next era of [Service department] growth probably won’t come from charging more —it will come from operating smarter and more efficiently” 4 Pro-Tip: Explore Experian’s CPO Affinity Audience and Service Affinity Audience to identify customers likely to make a CPO purchase or schedule service within a given timeframe. With a Service Affinity, try:(1) Promoting bundled offers tied to seasonal repair (Cold Weather Readiness Check: Tire rotation + Cabin Air Filter Replacement)(2) Sending timely service coupons or Miles Driven reminders.Encourage customers to choose your dealership. 4) Transparency with Data Integration can make a Dealer an MVP with Customers Between a strong omnichannel experience, Vehicle History Data, and truly understanding customers’ needs, each dealer has to have a competitive edge. Cox Automotive’s, Lori Whittman emphasizes, 80% of Consumers expect to work with a dealer...[customers] want to figure out what they can afford. 5 Create a personalized experience by connecting data and reducing customer frustration. Pro-Tip: Experian is the only primary data source for vehicle data, consumer data, and credit data. Experian Marketing Engine helps dealers reach (I)n (T)he (M)odel (M)arket (ITMM) customers where they are in their purchase journey. With a decline in financing incentives and loan & lease payments increasing 6 lean into EME’s Sales Affinity Audience. Consider targeting customers that have a propensity to lease, finance, or trade in their vehicles (amongst other purchase type options). Key Takeaway: Whether you are a Dealer, OEM, Agency, or Lender, as you close out 2025, remember that success in automotive marketing requires both strategic planning and adaptability with compliant data that fits your unique needs. Remember these 4 Pro-Tips when optimizing your playbook: Assign dedicated platform users Integrate multiple data sources to deliver targeted, effective campaigns Include CPO and Service strategies as essential game-changers Transparent integration can keep your dealership in the end zone Decide where you can capture valuable margins based on trends, consider your data consultants, and collaborate on seamless experiences that meet consumer expectations. Ready for Growth Opportunities with Experian Data? Find out more about the data and solutions you need to make critical business decisions. Connect with Experian Automotive and start engaging with the right audiences at each stage of their car buying journey. Learn More Sources: https://www.coxautoinc.com/insights-hub/autotrader-finds-dealers-miss-key-sales-and-wasted-ad-budgets-with-92-of-vehicle-sales-untraceable/ https://www.coxautoinc.com/insights-hub/used-retail-vehicle-sales-august-2025/ https://news.dealershipguy.com/p/used-car-pipelines-are-transforming-here-s-how-dealers-are-building-multiple-buying-channels https://news.dealershipguy.com/p/service-profits-soar-to-record-highs-but-dealer-pricing-power-has-its-limit-report-2025-08-19 https://www.coxautoinc.com/insights-hub/watch-now-2025-cox-automotive-leadership-roundtable-sessions/ https://www.experian.com/automotive/auto-credit-webinar-form

Buy now, pay later (BNPL) has rapidly matured into a $175 billion market in the U.S. alone, according to PYMNTS, reshaping how consumers approach short-term financing. While early BNPL adoption was often associated with younger, higher-risk borrowers, recent data paints a far more nuanced and encouraging picture. Today’s BNPL consumers are showing signs of financial responsibility, planning, and discipline — offering lenders new opportunities to empower financial futures. BNPL adoption is widening Though Millennials and Gen Z remain the largest user base, usage among Gen X and Baby Boomers continues to grow steadily. Between 2021 and 2025, BNPL adoption among Gen X is projected to rise by 13.7%, and by 8.6% for Baby Boomers. According to a Morgan Stanley report, much of this growth is being fueled by the perceived ease and predictability of BNPL terms. In fact, Experian research1 shows 41% of U.S. adults have used BNPL, with nearly half of those users tapping into the service once a month or more. This increased use of BNPL appears to reflect that BNPL has moved from a niche payment option to a mainstream financial tool. The rise of intentional and responsible spending Contrary to outdated perceptions, most BNPL users are not overleveraged impulse spenders. Instead, Experian data shows: 73% of BNPL users report making payments on time and as agreed.2 75% cite convenience and flexible payments as their primary motivations.3 The desire for control and flexibility is a consistent behavioral theme. Investopedia notes that leading BNPL platforms are leaning into this demand by offering budgeting tools and automatic payment reminders. Why this shift matters for lenders When BNPL data becomes available to lenders, the data it generates will offer a powerful lens into consumer behavior. Beyond challenging old assumptions, these insights can be leveraged to strengthen risk assessment, identify new growth opportunities, and serve consumers who may otherwise be overlooked: Enriched credit risk models BNPL payment data can add an additional layer of insight into consumers’ financial health and behaviors. By integrating this information into their underwriting process, lenders can more accurately assess risk. Serving thin-file consumers  Thin-file consumers, such as young adults, may often be overlooked by traditional credit models. BNPL data can provide greater visibility into their financial habits, helping lenders expand credit access more equitably and support greater financial inclusion. Evolving with the BNPL consumer Today’s BNPL users are not who they were five years ago. They are increasingly financially literate, focused on credit health and integrating BNPL into everyday budgeting. When BNPL data becomes available, lenders will have a chance to: Sharpen risk models with alternative data Personalize offers with greater precision Expand financial access to underserved groups BNPL users are changing — and lenders who understand this shift will be ready to serve a broader, more responsible borrower base when the data becomes actionable. We continue to work closely with BNPL providers to support expanded data furnishing and bring greater visibility to both consumers and the industry. Visit our webpage to discover the latest insights and developments on BNPL data. Learn more 1-3Experian commissioned Atomik Research to conduct an online survey of 2,005 adults throughout the United States. The margin of error is +/- 2 percentage points with a confidence level of 95 percent. Fieldwork took place between May 15 and May 20, 2025.

In today’s fast-moving financial services landscape, fintechs face a dual challenge: scaling profitably while managing increasingly complex risk. From credit underwriting to fraud prevention, every decision carries both opportunity and exposure. That’s why forward-looking fintech leaders are turning to data-driven credit risk management strategies to sharpen decision-making, enhance compliance and unlock growth. Why data-driven risk management matters in fintech Fintechs are navigating an environment shaped by rapid innovation, shifting regulations and evolving consumer expectations. Within this landscape, three challenges come to the forefront: Evolving fraud threats: Fraudsters are advancing quickly, exploiting digital onboarding and consumer data. Siloed functions: Traditionally, credit, fraud and compliance were separate, but as fraud detection becomes a higher priority, forward-looking companies are now integrating these functions, with84% planning to share more data across the industry to help prevent fraud.1 Operational complexity: Fintechs must balance growth with compliance, often with lean teams, tech-debt that demands a strong return on investment (ROI)and aggressive timelines. These challenges make it clear that static, one-dimensional risk measures are no longer sufficient. By leveraging a unified decisioning platform that incorporates behavioral data and advanced analytics, fintechs can gain a more holistic view of consumer financial behavior. This broader perspective not only improves the accuracy of credit assessments but also strengthens defenses against sophisticated fraud threats. Driving efficiency through automation A data-driven risk management strategy is only as effective as its ability to be executed at scale. This is why automation is no longer a nice-to-have, but a competitive necessity in an industry defined by speed, complexity and rising consumer expectations. By embedding automation into credit and fraud risk management processes, fintechs can create systems that are more efficient, resilient and compliant. Key advantages include: Increased underwriting efficiency: Combined with data-driven insights, automated decisioning platforms allow fintechs to evaluate applications quickly and more accurately, resulting in faster and fairer credit decisions. Portfolio growth: Leveraging expanded data and automation allow enables smarter customer segmentation and more precise risk-based pricing, driving broader market reach and greater profitability. Fraud mitigation: Automated identity verification helps fintechs quickly validate customers, reduce friction in the onboarding process and block fraudulent activity before it impacts portfolios. Regulatory readiness: Unified, automated risk processes enable fintechs to adapt quickly to regulatory shifts, fraud trends and market disruptions, building long-term sustainability. Comparing legacy and modern credit risk approaches in fintech Data and automation have become essential for executing risk strategies at scale, highlighting just how far credit risk management has evolved. Below are key differences between traditional and modern approaches to credit risk. FeatureLegacy approachData-driven approachRisk detectionPoint-in-time scoresTrajectory-based modelingFraud preventionManual reviewAutomated, behavioral analyticsComplianceSiloed functionsUnified decisioning platformCustomer experienceSlow, manualFast, fair, automated Why fintechs choose Experian® As fintechs navigate an environment of increasing regulation, fraud sophistication and consumer expectations, the winners will be those who embrace a data-driven, automated and converged approach to credit and fraud risk management. Experian offers fintechs a partner with unmatched data accuracy, robust alternative data capabilities and end-to-end decisioning solutions designed for today’s converged risk landscape, including: Trended 3DTMattributes capture 24 months of key consumer credit activity, enabling fintechs to better manage portfolio risk and determine next best actions. Cashflow Score leverages consumer-permissioned banking transaction data to predict the likelihood of a borrower going 60+ days past due in the next 12 months, providing deeper visibility into financial health and repayment capacity. PowerCurve® is a unified, automated decision engine that incorporates data, strategy design, decision automation and detailed monitoring and reporting to help fintechs streamline credit decisions with speed and consistency. Our behavioral analytics capabilities, powered by NeuroID, provide a seamless, invisible gauge of user risk, allowing fintechs to proactively mitigate fraud while creating a secure, low-friction customer experience. Frequently asked questions What is data-driven risk management in fintech? It’s the application of advanced analytics, behavioral data and automation to help fintechs improve credit risk assessment, fraud prevention and compliance in digital-first environments. How does automation help fintechs manage credit risk? Automation enables fintechs to scale efficiently by streamlining underwriting, minimizing manual errors and ensuring consistent decision-making. What are the benefits of unified decisioning platforms? Unified platforms integrate credit, fraud and compliance decisions into a single workflow, helping fintechs onboard customers faster, respond quickly to fraud threats and maintain compliance without slowing down innovation. Discover how our fintech solutions can help your fintech strengthen credit risk management, reduce fraud and accelerate growth. Learn more 1Experian Vision

Continuing our in-depth exploration of what automotive marketers are prioritizing, we’re taking a closer look at how refining communication and messaging strategies can help enhance the connection with consumers.  As communication preferences continue to evolve for consumers, businesses have to rethink how they engage.  By creating strategic plans to stay ahead, dealers, along with their advertisers and agencies, can build stronger relationships and drive better outcomes across various departments. Here are three ways to align your messaging with today’s consumers:   1. Leverage the Preferred Method of Communication for Consumers:  Text messages are read 98% of the time and within 3 minutes 95% of the time, while answer rates for phone calls from unknown numbers have dropped below 15%. ¹  When it comes to Fixed Ops, Derek Simonds, Executive VP of Automotive at Numa,  quotes Cox Automotive and CDK, “Over 90% of service customers would rather text with the service department than they would talk to them.” ²    According to J.D. Power, client retention is key, with 82% of consumers choosing to cut ties with a dealership due to poor communication alone.  2. Assess Your Local Audience and Use Direct Mail to Connect:  Rural markets may still appreciate traditional direct mail in smaller marketers. ³  When used strategically, direct mail could remind consumers of a dealer's presence and offerings.    Dealers in these areas may find that physical mailers are still effective, especially when paired with offers or event invites that speak directly to the needs of the community.  3. Generate Offers by ZIP Code:  Consider a ZIP code strategy and monitor local trends to move inventory with offers that focus on affordability for consumers.  Do what makes sense for your ZIP, dial in what’s moving, what’s not, and experiment with messaging.4  Let your ZIP code data guide you: spot trends, adjust offers, and refine your message accordingly. This kind of geotargeting ensures you’re marketing to the right audience.  Key Takeaway:   Having a strong understanding of your consumer base and how they prefer to communicate is essential. Leading dealers and marketers constantly test, learn, and evolve.  Right now, texting might be a preference for most consumers and direct mail could work in remote areas but be sure to pair these insights with a strategy that creates a well-rounded, responsive experience.  Need help getting started?  The Experian Marketing Engine can help with ZIP code targeting and unlock more meaningful consumer engagement. We empower automotive marketers to identify the right audience, uncover the most appropriate communication channels, develop messages that resonate, and measure the effectiveness of their marketing activities.  Our data driven and predictive modeling audiences can identify consumer preferences and needs proactively. Connect with Experian Automotive and start reaching in-market consumers today!    Discover More Sources:  https://news.dealershipguy.com/p/dealers-are-saving-thousands-in-labor-in-fixed-ops-2025-05-30 https://news.dealershipguy.com/p/customers-calling-the-service-deptartment-best-dealerships-are-evolving-longo-toyota-numa-2025-07-18  https://news.dealershipguy.com/p/the-road-to-40-stores-within-10-years-proven-frameworks-to-scale-effectively-2025-07-25 https://news.dealershipguy.com/p/new-vs-used-car-sales-how-zip-code-specific-strategies-are-shaping-dealer-results-07-29-2025

Since mortgage rates have remained high even after recent Federal Reserve rate-cutting activity, there is limited rate incentive to refinance for the vast majority of borrowers. In the absence of significant rate incentive, borrower mobility and behavioral tendencies have become outsized drivers of both prepayment speeds and origination volumes. Unfortunately, traditional MBS market data does not contain adequate information for investors to analyze either borrower mobility or behavioral tendencies like sources of payoff funds (i.e., cash payoff, refinance of existing loan, opening of a new lien on a 2nd home, etc.).  By using Experian's Mortgage Loan Performance (MLP) Dataset, a monthly-updated time series featuring combined loan, borrower, and property-level details covering nearly the entire US mortgage market since 2005, it's possible to examine patterns in behavior for borrowers who have prepaid their loans early, such as: The proportion of paid-off borrowers who retain the subject property (“stayers”) versus those who move (“movers”); and for both of these subsets, the percentage of people who re-enter the mortgage market with a new loan ("returners") compared to those who leave the mortgage market after paying off their loan ("leavers"). Classification as returner or leaver in the charts below is based on whether the paid-off borrower opened a new mortgage loan as of the end-of-August observation date. Sources of mortgage payoff funds — what proportion of pay-off was via refinance of the subject property vs. opening a new lien on a 2nd home or investment property?  What proportion pays off in cash resultant from a sale of the subject property or cash out-of-pocket while retaining the subject property? For the set of returners, what is the typical time lapse between payoff and opening of a new mortgage, i.e., are most payoffs simultaneous or are a significant number of borrowers utilizing bridge financing, or paying off a current loan while they shop for a new home and new loan? For the set of leavers, what are the credit, income and demographic characteristics of these borrowers?  Are they leaving the mortgage market because they are unable to get a new loan due to weak credit or insufficient income? Mobility and source of payoff cash dynamics are summarized below for a sample of ~ 63,000 mortgage payoff events, drawn from MLP, which occurred from February to July 2025.   Amongst other trends, we see that approximately 70% of borrowers who paid off their loan exited the mortgage market (~40% retained property after a cash payoff + ~4% sold property and bought a new property in cash + ~24% sold property and didn’t purchase another property).  This high proportion is probably driven in part by the relative lack of rate/term refinance and purchase activity given the current rate environment. When we look at all payoffs in MLP over the same time period — 2.3 million payoff events — the ~70% proportion of leavers holds. Within this larger sample, we also break down time to re-entry for the returners.  Unsurprisingly, of the 30% returners, the vast majority open a new loan just prior to or within a month of prepayment: Since MLP contains monthly-refreshed, joined credit profile data for every mortgaged borrower, we can also examine the credit and income characteristics of leavers to determine if poor credit or limited income prohibited re-entry. This analysis reveals that leavers are generally not credit or income limited; the pool of leavers is characterized by the following average metrics: 746 current Vantage 3.0 credit score 49 years of age $99,759 current modeled income 34.8 back-end DTI The following table stratifies the leaver population by generation: Further segmentation by loan servicer, originator and borrower credit profile (e.g., dollar amount of student loan debt outstanding) and past behavior (e.g., how many mortgages has this borrower refinanced in the past?) across all tradelines are potential next steps. As the rates environment evolves, we will monitor mobility trends, the ratio of borrowers paying off loans while moving versus those staying, and how borrowers decide to finance their prepayments. In addition to rates, changes in HPI, unemployment and underwriting guidelines will influence these behaviors. By leveraging new datasets like MLP which capture not only loan performance, but also regularly refreshed credit profile, behavioral trends and property details over the entire credit lifespan of a consumer and all their tradelines, investors can incorporate a 360-degree view of loan, borrower and property into their predictive analyses.