Financial Services

Nearly 19 million U.S. households remain unbanked or credit-invisible,1 not due to a lack of financial responsibility but because traditional credit models alone may not include key financial behaviors. These individuals often save, earn and budget wisely, yet conventional scoring systems do not recognize them. We’ve recently partnered with Plaid, the trusted leader in open finance, to change that. Together, we’re putting cash flow underwriting front and center — giving lenders access to real-time, consumer-permissioned financial data that paints a fuller, more accurate picture of creditworthiness. Why cash flow data matters now  In the U.S., many consumers with limited credit histories want to build their profiles but don’t know how. Cash flow underwriting bridges this gap. Cash flow insights reveal real-world financial activity — like income patterns, spending habits and account balances — in real time. This empowers lenders to make smarter, faster and more inclusive credit decisions, while helping consumers gain access to the financial services they deserve. What cash flow insights deliver By incorporating cashflow data into your decisioning strategy, you can: See beyond the score with a richer view of a consumer’s financial health. Accelerate approvals with more accurate and timely insights. Expand access to credit while strengthening portfolio diversity and reducing risk. Download our infographic to see how cash flow underwriting is reshaping lending — and how you can lead the change. Download infographic 1Mullen, C. (2024, November 13). Underbanked US population grows to 14.2%, FDIC finds. Banking Dive. 

Credit decisioning has traditionally relied on static data like credit bureau scores, income statements, and past repayment history. As financial behavior becomes more dynamic and consumer expectations shift toward instant decisions, real-time data is emerging as a powerful tool in reshaping how lenders assess risk.

Lending fraud – what is it? Lending fraud is a deceptive practice in which individuals or entities intentionally provide false or misleading information during the loan application process to secure credit or financial gain. This can include using fake identities, inflating income, forging documentation, or applying for loans without the intention of repayment.   The consequences are significant: lenders suffer financial losses, consumers experience identity theft or damaged credit scores, and the economic system bears increased risk and regulatory scrutiny. Loan fraud is a growing concern across consumer, commercial, and mortgage lending sectors, affecting institutions of all sizes. How do I safeguard my organization from loan fraud?    Preventing lending fraud is a complex, ongoing challenge that requires a multi-layered and holistic approach. As fraud tactics become more sophisticated, especially with the rise of generative AI and digital lending channels, financial institutions must continually evolve their defenses.  Strong identity verification is the first line of defense. Lenders should implement advanced authentication tools beyond basic KYC (Know Your Customer) checks. This includes biometric verification, document verification, and device intelligence —technologies that assess the authenticity of the user and the device used during the application process. These tools can help detect synthetic identities — false identities created using a blend of real and fabricated information — increasingly used in loan fraud schemes.  Another crucial strategy is real-time data analytics and behavioral monitoring. Lenders can quickly identify anomalies that may indicate fraudulent activity by analyzing applicant behavior, credit history, device usage patterns, and geolocation data in real time. For example, if an applicant submits multiple loan applications from different IP addresses in a short time frame, that could raise a red flag for potential lending fraud.  Employee training and awareness are also essential. Frontline staff must be equipped to identify warning signs, such as inconsistencies in application documents or rushed, high-pressure loan requests. Regular fraud prevention training helps employees stay alert and aligned with the organization’s risk management protocols.  57% of financial institutions reported direct fraud losses exceeding $500,000 in the past year, with 25% exceeding $1 million.1 Consumers reported losing more than $12.5 billion to fraud in 2024, which represents a 25% increase over the prior year.2 In addition, robust internal controls and auditing mechanisms are critical in prevention. Organizations should regularly audit loan origination processes and investigate unusual approval patterns to detect insider fraud or systemic vulnerabilities.  Finally, consumer education is a vital, often overlooked, aspect of combating loan fraud. Lenders should provide resources to help customers understand the risks of identity theft, encourage them to monitor their credit reports regularly, and empower them to report any suspicious activity. A well-informed customer base can be a valuable early warning system for fraud.  With digital lending becoming the norm, preventing lending fraud means staying ahead of increasingly tech-savvy fraudsters. Leveraging data, technology, and education together builds a stronger, more resilient fraud defense framework.  Lending fraud + Experian – How we can help  With access to the industry’s most advanced fraud detection and identity verification tools, partnering with us gives you a potent edge in combating lending fraud. As a global leader in data, analytics, and technology, our comprehensive and accurate sets of consumer information enable you to spot risks that might be invisible through conventional means. Our approach combines rich data insights with powerful machine learning algorithms, delivering fraud prevention tools that are intelligent, scalable, and highly adaptive.  Our fraud detection technologies are designed to protect every stage of the lending lifecycle. From real-time identity verification and multi-factor authentication solutions to behavioral biometrics and device intelligence, so you can detect synthetic identities, manipulated applications, and other forms of loan fraud before they lead to financial loss.  In an era where trust is currency, partnering with us doesn’t just help protect against lending fraud — it enhances your reputation as a secure, responsible lender. You gain the confidence of your customers by providing safe, streamlined lending experiences while meeting compliance requirements and reducing operational risk. With us, you’re not just reacting to fraud—you’re anticipating it, preventing it, and confidently growing your business.  Learn more 1State of Fraud Benchmark Report. Alloy. (2024). 2New FTC Data Show a Big Jump in Reported Losses to Fraud to $12.5 Billion in 2024. Federal Trade Commission. (2025, March 10). 

Experian is proud to be a Thought Leadership Sponsor at this year’s Federal Identity Forum & Expo (FedID)! We’re bringing the latest innovations in fraud prevention, identity verification, and behavioral analytics – all designed to help government agencies protect access, ensure trust, and stay ahead of evolving threats.

Risk management specialists, marketing departments, and customer success teams often work from different data sets, leading to inconsistent insights and missed opportunities. A unified data strategy can help break down these silos and unlock the full potential of an organization’s ability to turn raw data into actionable insights.

Collaboration between financial institutions and tech companies is essential to stay competitive and enhance the consumer experience.

Understanding generational trends and preferences is more crucial than ever, especially for the financial services industry.

Building loyalty and improving customer retention are sensible business practices, and they're essential banking growth strategies for long-term success.

Experian and Plaid are teaming up to power smarter, faster, and more inclusive lending — fueled by real-time cash flow insights. The financial landscape is becoming more dynamic and digitally connected. Consumers are increasingly turning to digital platforms not only to pay bills and track spending, but to better understand their financial health, monitor their credit standing, and plan confidently for the future. This evolution presents a timely opportunity for innovation in underwriting — one that empowers consumers to take control of their financial futures and enables lenders to make faster, smarter, and more inclusive decisions. What happens when the leading global data and technology company joins forces with the largest open banking network in the world? Experian and Plaid are coming together to solve some of the most pressing challenges lenders face, bringing cash flow insights into credit decisions, seamlessly. Smarter lending: Elevating the credit decision process For lenders seeking a holistic view of borrowers to make faster, more informed decisions, this new collaboration is a game-changer. Experian and Plaid are combining real-time, unmatched cash flow data and analytics to help lenders improve decisioning, pinpoint risk precisely, and drive financial inclusion. This marks a pivotal shift in how credit is assessed, moving us toward faster, and fundamentally smarter lending decisions. This strategic collaboration delivers real-time cash flow insights in a comprehensive solution, built on core principles designed to directly enhance your lending capabilities: Speed and simplicity: Driving efficiency with seamless integration In today’s fast-paced financial landscape, efficiency in underwriting isn’t just an advantage; it’s a necessity. Our combined solution prioritizes speed and simplicity by offering easy integration through APIs. This ensures fast access to meaningful risk insights, streamlining your workflows. Imagine easily leveraging real-time cashflow risk insights directly into your existing processes for faster and smarter lending decisions. This is about delivering modern infrastructure that allows you to move at the speed of today's market, empowering your business to expand with confidence. Broader visibility: Unveiling a holistic consumer view Traditional credit scores are a reliable, crucial tool for measuring a borrower’s creditworthiness. When coupled with real-time cashflow data and risk insights, lenders are empowered with broader visibility, bringing to light a more holistic view of a borrower’s current financial reality and opportunities that may have been missed. You gain a comprehensive consumer financial picture, allowing for more precise identification of both strong financial capacity and potential risks, ultimately helping you target and acquire customers who align with your growth objectives. Smarter decisions: Enhancing models with combined intelligence The power to make truly informed decisions hinges on the quality and depth of your data. Without robust insights, risk models can be limited, impacting precision and speed. With Experian's advanced cash flow analytic capabilities and Plaid's streamlined access to real-time cash flow data via Consumer Report, you can enhance your risk assessment for smarter decisions. This synergy empowers financial institutions to expand credit access and uncover hidden risks, leading to more precise underwriting. It’s about leveraging advanced analytics in real-time to drive improved decision-making and build stronger portfolios. More inclusive lending: Expanding access, responsibly A significant challenge in lending is ensuring access for all creditworthy individuals, including those with limited traditional credit histories who may be overlooked. This represents an untapped market and a vital opportunity for responsible growth. Our solution champions more inclusive lending, enabling you to reach underserved communities and empower consumers who demonstrate strong financial capacity. This not only fosters stronger portfolios but critically helps your business grow by efficiently acquiring customers across a broader spectrum. Proven trust: Lending with confidence In the financial industry, the bedrock of any solution is trust – in the data, security, and partners. Lenders require unwavering confidence in the tools they adopt. This collaboration is built on proven trust, leveraging the reach, reliability, and security of two of the most trusted names in financial services. Experian’s expertise in credit data and consumer protection, combined with Plaid’s modern infrastructure and trusted open banking network, offers unparalleled assurance. You can securely integrate these powerful insights, knowing you are backed by industry leaders committed to best-in-class security and compliance, enabling your business to grow with confidence without compromise. Smarter lending starts now The evolution of underwriting demands a more dynamic, inclusive, and precise approach. With Experian and Plaid, you're not just adapting to change; you're leading it. Empower your organization to approve more borrowers, reduce risk more effectively, and make smarter, faster decisions for sustainable success. Ready to transform your lending strategy? Learn more about how to bring cash flow insights into your credit decisions seamlessly. Learn more

Managing credit limits effectively can be a game-changer for both consumers and financial institutions. Understanding the benefits and behaviors associated with increased credit limits helps in appreciating the long-term impacts of this strategy. Proactive credit limit management offers numerous advantages that can significantly improve financial health and stability.

Customer retention is crucial for lenders to maximize lifetime value, especially during economic uncertainty. Increasing customer retention rates by just 5% can boost profits by 25% to 95%. However, many lenders struggle with loyalty, as seen in Q2 2024 when mortgage servicers’ retention rates for refinances dropped to 20%, the second lowest in 17 years. Nonbanks and banks also saw significant declines. This is due to increased competition, changing economic conditions, and a lack of personalization. Key strategies for improving customer retention Lenders can improve retention by leveraging data for personalization, maintaining consistent communication, offering loyalty rewards, and utilizing retention triggers. Leverage data for personalization. Use customer data to offer tailored products and refinancing options based on financial behaviors. Using credit attributes, trended data and alternative credit data (alternative financial services data,  cashflow attributes, etc.) can help provide deeper insights of your customers. Maintain consistent communication. Keep customers informed with regular updates about interest rate changes or new loan products. Use a variety of communication channels, including email and in-app messaging, to ensure customers are kept in the loop. Ensure your customer service team is always available and responsive, offering clear answers to any financial concerns. Offer loyalty rewards. Develop programs that reward repeat business and referrals. Offer special rates or discounts for returning customers or for those who refer friends and family to your services. Increase customer lifetime value (LTV) by offering additional services like financial planning or credit score monitoring. Utilize retention triggers. Identify key events for engagement with automated retention triggers. For example, a borrower who has a mortgage with a fixed rate may be less likely to consider refinancing unless prompted. Experian’s Retention TriggersSM can notify lenders when refinancing might be beneficial to their customer, offering them personalized incentives or new product options at the right time. Why Experian’s Retention Triggers? By integrating Experian’s Retention Triggers, lenders can keep borrowers engaged, increase retention, and boost profitability even in tough economic times. Advanced data insights: Gain deeper insights into your customers’ behavior to identify those at risk of leaving and take proactive action. Personalized engagement: Automate personalized communications based on customer behaviors, ensuring timely engagement. Increased revenue: By offering personalized, timely and relevant offers, you can increase the likelihood of retaining your customers and growing your revenue. Make customer retention a priority In today’s challenging economic climate, lenders who focus on personalized experiences, consistent communication, and relevant offers will stand out and retain borrowers. Leverage tools like Experian’s Retention Triggers to proactively engage customers, reduce churn, and foster long-term relationships for increased profitability and success. Learn more

In today's fast-paced financial landscape, demand deposit accounts (DDAs) have become a cornerstone for both consumers and financial institutions. These accounts, which include checking, savings, and money market accounts, offer the flexibility of accessing funds on demand without prior notice. As the financial industry evolves, the demand for consumer DDAs continues to grow, driven by the need for convenient and accessible banking solutions. Why DDAs are critical for financial institutions As a financial institution, consumer DDAs are crucial for you for several reasons: Customer Acquisition and Retention: DDAs can serve as the first point of contact between customers and financial institutions. By offering attractive DDA options, you can attract new customers and retain existing ones, fostering long-term relationships. Revenue Streams: DDAs generate revenue through various channels like interest on account balances, and also provide opportunities for cross-selling other financial products and services, enhancing overall profitability. Data Insights: DDAs offer valuable insights into customer behavior and spending patterns. Financial institutions can leverage this data to tailor their products and services, improve customer satisfaction, and develop targeted marketing strategies. Liquidity Management: DDAs help you manage liquidity by providing a stable source of low-cost funds. The deposits in these accounts can be used to support lending activities and other financial operations, ensuring your financial stability. These points highlight the strategic importance of consumer DDAs in the overall business model of financial institutions, making them a critical component for success. Attracting and retaining Gen Z and millennial customers Gen Z and Millennials are more likely to change financial institutions frequently. Capturing this audience is essential, as Gen Z will likely be the largest and wealthiest generation in the future. Members of this generation value digital capabilities, personalized experiences, and flexibility, often switching banks to find better services and offers. Over 40% of Gen Z switched financial institutions between 2023-2024 1. A few strategies for attracting and retaining these critical generations include: Digital-First Approach: Both Gen Z and Millennials have grown up with technology and expect seamless digital experiences. Offering robust online and mobile banking platforms with features like digital account opening, real-time transaction alerts, and easy fund transfers is crucial. Credit Card Cross-sell Opportunities: Among Gen Z and Millennials, credit cards continue to be the most in-demand banking product2. By pairing attractive DDA offers with compelling credit cards, you can pave the way for DDA opportunities with current card-only customers. Personalization: These generations value personalized experiences. You can use advanced data analytics to offer customized financial products and services that meet individuals’ needs and preferences. Personalized communication and tailored offers can significantly enhance customer satisfaction and loyalty. Financial Education and Tools: Providing educational resources and tools to help manage finances can be a significant draw. Gen Z and Millennials appreciate institutions that offer budgeting tools, financial literacy programs, and personalized financial advice, and are likely to stick with institutions that also act as a trusted advisor. Innovative Features: Offering innovative features like integration with digital wallets, buy-now-pay-later options, and family banking tools can appeal to the tech-savvy nature of these generations. Keeping up with the latest technology trends ensures that the institution remains relevant and attractive. What consumers want in a demand deposit account With today’s high-interest rates and digital banking services, consumers are willing and able to move their money now more than ever.  It’s important to understand what a consumer values in a DDA to stay competitive: Accessibility and Convenience: Consumers want easy access to their funds at any time, whether through ATMs, online banking, or mobile apps. The ability to manage their accounts and perform transactions seamlessly is a top priority3. Interest Earnings: While not all demand deposit accounts offer interest, many consumers appreciate the opportunity to earn interest on their balances. This feature can make a DDA more attractive compared to non-interest-bearing accounts3. Security and Fraud Protection: Security is paramount for consumers. They want assurance that their funds are protected against fraud and unauthorized access, with features like real-time alerts and robust fraud detection systems3. These features collectively enhance the appeal of demand deposit accounts, making them more attractive to consumers seeking reliable and efficient banking solutions. How Experian Partner Solutions can help We offer a suite of tools and services designed to help financial institutions attract and retain your DDA customers: Advanced Data Analytics: We leverage extensive data analytics to understand consumer behavior and preferences. This allows you to create highly targeted and personalized offers that resonate with potential customers. Personalized Financial Insights: By leveraging comprehensive financial data, we can help you offer personalized insights and action plans that help customers manage their finances more effectively. This personalized approach can significantly enhance customer satisfaction and loyalty. Identity Monitoring: Our credit and identity alerts empower your consumers to spot potential fraud, assess risks, and respond before they become a victim of identity theft. By personalizing these alerts, we can drive consumers to your portal to review their risk level and respond in real time, giving you opportunities through additional touchpoints. Financial Wellness Solutions: We offer comprehensive credit and financial management tools to help your customers better understand the credit environment and learn how they can most effectively manage their finances. Educated, financially healthier customers are less likely to miss payments and ultimately pose less risk to your business. By utilizing these capabilities, we can help you attract and retain customers for DDA accounts, ultimately driving growth and enhancing customer satisfaction. The demand for consumer DDAs is on the rise, driven by the need for accessible and flexible banking solutions.  Financial institutions like credit unions and banks attract new deposits by offering competitive interest rates, seamless digital banking experiences, and personalized financial products. As consumers seek more convenience and value, financial institutions must innovate to meet evolving expectations and retain deposit growth. We offer the tools and insights needed to navigate this evolving landscape, helping you thrive in a competitive market. This article includes content created by an AI language model and is intended to provide general information. References [1] Why Gen Z is Switching Banks | Chime [2] 2025 Will Be the Year of the Credit Card | The Financial Brand [3] What Is a Demand Deposit Account? | Banking Advice | U.S. News

With cybersecurity threats on the rise, organizations are turning to token-based authentication as a secure and efficient solution to safeguard sensitive data and systems. Data breaches impacted 1.1 billion individuals in 2024, a staggering 490% increase from the previous year.1 Token-based authentication is a method of verifying a user's identity through digital tokens rather than traditional means such as passwords. These tokens are temporary and serve as access keys, allowing users to securely interact with systems, applications, and networks. The goal of token authentication is to strengthen security while improving the user experience. Instead of relying solely on static credentials (like passwords), which can be intercepted or stolen, leveraging a type of multi-factor authentication like tokens adds an additional layer of security by functioning as dynamic access credentials. How token-based authentication works Token authentication unfolds through a series of steps to ensure robust security. Here's a simplified breakdown of how it works in practice: User request and authentication: When a user attempts to log in, they provide their credentials (e.g., username and password). These credentials are verified by the authentication server. Token generation: After verifying the user's credentials, the server generates a token — a cryptographically secured string often containing information like the user's ID and permissions. Token sent to the user: The generated token is sent back to the user or their device to confirm authentication. Token usage for access: Now authenticated, the user uses the token to access the system or application. The token is passed along with each request to ensure the user is authorized to proceed. Token validation: Each time a token is presented to the server, its integrity and expiration are verified. If the token is valid, access is granted; if not, the session is terminated. Token expiration and renewal: Tokens are typically temporary and expire after a set period. Users must either re-authenticate or renew the token for continued access. This limits the time window during which a stolen token can be misused. Types of token authentication methods Token authentication comes in different forms to meet various use case requirements. Common types include: JSON Web Tokens (JWT) Lightweight, self-contained, and easily transferred between clients and servers, JWT is one of the most widely used token formats. It includes claims, which are bits of information about a user encoded within the token, such as roles and permissions. Example: A financial application uses JWTs to ensure only registered users can access private account data. OAuth tokens OAuth is an industry-standard authorization protocol that uses tokens to grant limited access to applications without revealing the user's credentials. It’s often used for third-party service integration. Example: When you log into an e-commerce platform using your Google credentials, OAuth tokens authorize access. Session tokens These are temporary tokens stored on the server to track authenticated sessions, commonly used in web applications to ensure secure browsing. Example: Online banking platforms rely on session tokens for secure user sessions. Refresh tokens Refresh tokens are designed to renew access tokens without requiring the user to log in repeatedly. They extend session durations while maintaining a high-security standard. Example: A subscription service app uses refresh tokens to maintain a seamless user experience without frequent logouts. Benefits of token-based authentication Token-based authentication offers several advantages that make it a preferred security measure for organizations of all sizes. Enhanced security: Tokens reduce the risk of breaches as they are temporary and encrypted. They’re also specific to sessions, applications, or devices, meaning unauthorized users cannot reuse stolen tokens effectively. Elimination of password reliance: Tokens reduce dependence on static passwords, which are often reused and susceptible to brute-force attacks. This bolsters an organization’s overall cybersecurity posture. Improved user experience: Token authentication allows for more seamless interactions by minimizing the need for repeated logins. With features like single sign-on (SSO), users enjoy convenient access to multiple platforms with a single token. Scalability: Tokens are flexible and can adapt to varied business use cases, making them ideal for organizations of all scales. For instance, application programming interfaces (APIs) and microservices can communicate securely via token exchanges. Supports compliance: Token-based authentication helps organizations meet regulatory compliance requirements by offering robust access control and audit trails. This is critical for industries like finance, healthcare, and e-commerce. Cost efficiency: While implementing token-based authentication may require an initial investment, it reduces long-term risks and costs associated with data breaches, system downtime, and customer trust. How Experian can help strengthen your authentication process At Experian, we recognize that strong security measures should never compromise the user experience. That's why we offer cutting-edge identity solutions tailored to meet the needs of organizations. Our tools allow you to integrate token-based authentication seamlessly into your systems while ensuring compliance with security best practices and industry regulations. Are you ready to take your business's security and user experience to the next level? Visit us online today. Learn more 12024-2025 Data Breach Response Guide, Experian, 2024. This article includes content created by an AI language model and is intended to provide general information.

The financial services industry faces increasing pressure to innovate in today's fluctuating interest rate environment. For regional banks and credit unions, effective deposit growth strategies involve more than just offering attractive rates. Leveraging data and analytics is key to enhancing deposit portfolios, improving customer engagement, and fostering financial wellness. By prioritizing consumer-focused solutions, institutions can achieve dual benefits: driving organizational growth while meeting customer needs. For a deeper dive into this subject, check out our on-demand webinar “Growing Beyond Interest Rates: The Opportunity for Demand Deposit Accounts.” The current state of interest rates and market dynamics As interest rates change, financial institutions encounter shrinking margins and heightened competition. The stakes are high: 54% of consumers plan to leave their banks within the next year1, often citing unmet expectations for personalized services and financial guidance2​​. This competitive environment requires innovative strategies to retain customers and attract new ones without solely relying on interest rates. Key challenges: Shrinking margins due to rate volatility. Increased competition from fintechs and alternative providers. Rising consumer expectations for personalized, proactive services. Leveraging data and analytics in your deposit growth strategies Regional banks and credit unions can distinguish themselves by investing in advanced data analytics and personalized engagement tools. These strategies help create value for customers while improving the institution’s operational efficiency and revenue potential. 1. Personalization through financial insights According to Experian data, more than half of consumers expect their financial provider to actively support their financial wellness2. However, one-third feel that current efforts fall short3​. Offering tools like spending trackers, budgeting resources, and personalized credit score improvement plans can help close this gap. 2. Engagement-driven solutions Consumers are more likely to stay loyal to institutions that provide actionable insights. Experian’s partners have seen a 5% lift in 12-month retention rates among customers enrolled in credit and identity programs according to data reported by partners2​. Alerts for credit monitoring and financial updates not only keep customers informed but also help drive monthly logins, enhancing cross-sell opportunities. 3. Identity and data protection as value-added services With the increasing threat of identity theft, proactive identity monitoring and restoration services are becoming critical. Banks offering these features—branded under their name—can boost customer satisfaction and loyalty​​. Practical steps for regional banks and credit unions To capitalize on these opportunities, financial institutions should consider the following steps: Step 1: Develop a customer-centric engagement program Tailor programs to different demographic groups. Millennials and Gen Z are particularly drawn to tech-savvy solutions that integrate seamlessly with their financial lives. By consolidating financial management tools within one portal, banks can help simplify customers’ lives and enhance engagement. Step 2: Focus on retention and cross-sell opportunities Consumers engaged with financial tools, such as credit score trackers or budgeting aids, exhibit stronger loyalty and are more likely to adopt additional products​. Use insights from these tools to offer personalized product recommendations that align with their financial journey. Step 3: Offer premium tiers Institutions can create tiered service packages, starting with free offerings (e.g., basic credit monitoring) and progressing to paid premium packages that include advanced identity protection or financial management analytics​​. Step 4: Utilize advanced analytics for targeting By analyzing anonymized customer data, banks can identify high-value segments and tailor marketing efforts to their specific needs. This targeted approach fosters more meaningful relationships and improves ROI on acquisition campaigns​. Case for Action: Why consumer engagement matters A customer engagement program does more than enhance loyalty, it helps drive measurable outcomes: Retention rates: Over 98% for free services and 91% for paid programs.4 Improved credit scores: Subprime consumers enrolled in credit-building tools see an average credit score increase of 32 points​​.5 Higher satisfaction scores: Some institutions offering comprehensive financial tools report a lift in Net Promoter Scores (NPS)​. Conclusion The path forward for regional banks and credit unions lies in moving beyond rate-based competition and looking to multipronged deposit growth strategies. By leveraging data, analytics, and consumer-focused programs, financial institutions can enhance their deposit portfolios and deepen customer relationships. Now is the time to transform engagement into a growth engine, ensuring long-term success in a dynamic market. Ready to elevate your deposit portfolio with our tailored solutions? Click below to learn more or contact us to schedule a consultation and design a program that meets your organization’s goals. Learn more Watch the webinar 1 Retail Bank Customer Satisfaction Holds Steady but Trust Declines, J.D. Power Finds, 2024 2 Experian internal analysis, 2024 3 MX, What Influences Where Consumers Choose to Bank, June 2023 4 Experian Core metrics analysis, October 2023 5 Experian Data, Credit Score Rates with subprime consumers, June 2022 – June 2023

As data breaches become an ever-growing threat to businesses, the role of employees in maintaining cybersecurity has never been more critical. Did you know that 82% of data breaches involve the human element1 , such as phishing, stolen credentials, or social engineering tactics? These statistics reveal a direct connection between employee identity theft and business vulnerabilities. In this blog, we’ll explore why protecting your employees’ identities is essential to reducing data breach risk, how employee-focused identity protection programs, and specifically employee identity protection, improve both cybersecurity and employee engagement, and how businesses can implement comprehensive solutions to safeguard sensitive data and enhance overall workforce well-being. The Rising Challenge: Data Breaches and Employee Identity Theft The past few years have seen an exponential rise in data breaches. According to the Identity Theft Resource Center, there were 1,571 data compromises in the first half of 2024, impacting more than 1.1 billion individuals – a 490% increase year over year2. A staggering proportion of these breaches originated from compromised employee credentials or phishing attacks. Explore Experian's Employee Benefits Solutions The Link Between Employee Identity Theft and Cybersecurity Risks Phishing and Social EngineeringPhishing attacks remain one of the top strategies used by cybercriminals. These attacks often target employees by exploiting personal information stolen through identity theft. For example, a cybercriminal who gains access to an employee's compromised email or social accounts can use this information to craft realistic phishing messages, tricking them into divulging sensitive company credentials. Compromised Credentials as Entry PointsCompromised employee credentials were responsible for 16% of breaches and were the costliest attack vector, averaging $4.5 million per breach3. When an employee’s identity is stolen, it can give hackers a direct line to your company’s network, jeopardizing sensitive data and infrastructure. The Cost of DowntimeBeyond the financial impact, data breaches disrupt operations, erode customer trust, and harm your brand. For businesses, the average downtime from a breach can last several weeks – time that could otherwise be spent growing revenue and serving clients. Why Businesses Need to Prioritize Employee Identity Protection Protecting employee identities isn’t just a personal benefit – it’s a strategic business decision. Here are three reasons why identity protection for employees is essential to your cybersecurity strategy: 1. Mitigate Human Risk in Cybersecurity Employee mistakes, often resulting from phishing scams or misuse of credentials, are a leading cause of breaches. By equipping employees with identity protection services, businesses can significantly reduce the likelihood of stolen information being exploited by fraudsters and cybercriminals. 2. Boost Employee Engagement and Financial Wellness Providing identity protection as part of an employee benefits package signals that you value your workforce’s security and well-being. Beyond cybersecurity, offering such protections can enhance employee loyalty, reduce stress, and improve productivity. Employers who pair identity protection with financial wellness tools can empower employees to monitor their credit, secure their finances, and protect against fraud, all of which contribute to a more engaged workforce. 3. Enhance Your Brand Reputation A company’s cybersecurity practices are increasingly scrutinized by customers, stakeholders, and regulators. When you demonstrate that you prioritize not just protecting your business, but also safeguarding your employees’ identities, you position your brand as a leader in security and trustworthiness. Practical Strategies to Protect Employee Identities and Reduce Data Breach Risk How can businesses take actionable steps to mitigate risks and protect their employees? Here are some best practices: Offer Comprehensive Identity Protection Solutions A robust identity protection program should include: Real-time monitoring for identity theft Alerts for suspicious activity on personal accounts Data and device protection to protect personal information and devices from identity theft, hacking and other online threats Fraud resolution services for affected employees Credit monitoring and financial wellness tools Leading providers like Experian offer customizable employee benefits packages that provide proactive identity protection, empowering employees to detect and resolve potential risks before they escalate. Invest in Employee Education and Training Cybersecurity is only as strong as your least-informed employee. Provide regular training sessions and provide resources to help employees recognize phishing scams, understand the importance of password hygiene, and learn how to avoid oversharing personal data online. Implement Multi-Factor Authentication (MFA) MFA adds an extra layer of security, requiring employees to verify their identity using multiple credentials before accessing sensitive systems. This can drastically reduce the risk of compromised credentials being misused. Partner with a Trusted Identity Protection Provider Experian’s suite of employee benefits solutions combines identity protection with financial wellness tools, helping your employees stay secure while also boosting their financial confidence. Only Experian can offer these integrated solutions with unparalleled expertise in both identity protection and credit monitoring. Conclusion: Identity Protection is the Cornerstone of Cybersecurity The rising tide of data breaches means that businesses can no longer afford to overlook the role of employee identity in cybersecurity. By prioritizing identity protection for employees, organizations can reduce the risk of costly breaches and also create a safer, more engaged, and financially secure workforce. Ready to protect your employees and your business? Take the next step toward safeguarding your company’s future. Learn more about Experian’s employee benefits solutions to see how identity protection and financial wellness tools can transform your workplace security and employee engagement. Learn more 1 2024 Experian Data Breach Response Guide 2 Identity Theft Resource Center. H1 2024 Data Breach Analysis 3 2023 IBM Cost of a Data Breach Report