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In today’s evolving labor market, the employment screening landscape is undergoing a significant transformation. The traditional methods of verifying income and employment are being reimagined to keep pace with economic shifts, digital expectations, and the growing complexity of workforce dynamics. As organizations contend with an influx of applications, resume discrepancies, and evolving workforce structures, the demand for accurate, secure, and efficient verifications has never been more pressing.  A Workforce in Transition  The current employment environment is marked by a distinct shift toward lower-wage industries, which now account for nearly 88% of job growth in 2024. White-collar job creation, in contrast, has declined. Industries such as retail, staffing, food services, education, and healthcare are driving employment gains, while sectors like technology and professional services experience stagnation or contraction. (Experian, 2024)  Geographically, unemployment remains concentrated in regions impacted by remote work trends and industry-specific slowdowns. These changes in job distribution and employment types underscore the need for more adaptive and inclusive verification processes that can accommodate a broader spectrum of worker experiences—from traditional W-2 employees to gig economy participants.  The Verification Bottleneck  At the core of employment screening lies a critical step: verification. While often overlooked, verification has a profound impact on hiring outcomes, onboarding timelines, and organizational risk. The risks of poor verification—from hiring the wrong candidate to facing compliance pitfalls—are high. Resume inconsistencies are increasingly common, making robust verification processes essential to mitigate liability and protect organizational integrity.  Recruiters are also grappling with scale. Many employers report receiving thousands of applications, often from automated tools, creating noise and reducing the signal necessary to identify truly qualified candidates. In high-volume hiring environments, the absence of efficient screening tools can quickly lead to operational inefficiencies and hiring errors.  Modernizing Research Verifications  The industry is at an inflection point. Legacy methods of verification—manual phone calls, faxed documents, and mailed records—are no longer viable at scale. As a result, the sector has shifted toward instant digital verifications sourced directly from employers and payroll providers. These methods, supplemented by consumer-permissioned workflows, offer a scalable and more accurate alternative.  However, not all employees can be verified through instant or consumer-permissioned methods, especially those in small businesses or with multiple jobs. This is where research verifications, long considered a fallback option, are being reengineered.  Today, a digital-first approach is transforming research verifications into a strategic asset. This evolution includes multi-channel support: call centers for live interactions, online smart forms for asynchronous data entry, and conversational AI that guides users through the process intuitively. Such flexibility ensures that verifications are accessible, efficient, and reflective of how people communicate in the digital age.  Consumer Engagement as a Verification Tool  A key innovation in the verification space is the rise of consumer-permissioned access. These workflows empower individuals to authorize access to their payroll or earnings data directly—often through secure, embedded interfaces or mobile prompts. This not only broadens the verification net to include gig workers and contractors but also strengthens data integrity by retrieving information from the source.  Interestingly, many hourly and gig workers are already familiar with this kind of access, given their reliance on apps for earnings and scheduling. As comfort with these tools grows, so too does the potential for consumer-permissioned verifications to become a mainstream standard.  Nevertheless, it's important to acknowledge that not every candidate is willing or able to engage with digital verification methods. That’s why the ongoing development of research verifications remains critical. Ensuring that all candidates—regardless of role, industry, or digital fluency—can be verified effectively is essential to creating an equitable hiring process.  Toward a Holistic Verification Ecosystem  Looking ahead, the employment screening industry is poised to adopt a more comprehensive approach. Income and employment verifications are no longer standalone processes—they are part of a broader ecosystem that includes identity verification, fraud prevention, and compliance validation. Integrating these components through automation and modern digital infrastructure enhances both security and decision-making.  Organizations now play dual roles in this ecosystem: as both verifiers (providing information about current and former employees) and consumers (seeking data for new hires). This dual perspective fosters greater alignment around the need for transparency, efficiency, and data integrity.  The vision for the future is clear. Verification processes must be fast, flexible, and fair—capable of handling the complexity of today’s labor market without compromising on accuracy or candidate experience. By reimagining research verifications through the lens of innovation and inclusivity, the industry is not only solving present-day problems but also laying the groundwork for a more agile and resilient workforce infrastructure.   Explore the Future of Employment Screening  Want to dive deeper into the trends and innovations shaping modern employment verification? Watch the full webinar, Reimagining Research Verifications for Employment Screening, featuring industry experts from Experian. 👉 Watch the webinar now  Troy Huff, Director of Product Management, Experian Employer Services, Reimagining Research Verifications for Employment Screening webinar, 2024. According to Hoff, in 2024, nearly 88% of new job growth occurred in lower-wage industries, highlighting a significant shift in workforce composition post-COVID.         

Early warning signs: Are you prepared for a shift in mortgage delinquencies?  As the mortgage industry enters the final quarter of 2025, signs of stress are emerging beneath what still appears, on the surface, to be a relatively stable housing market. Recent mortgage performance data indicates a notable increase in late-stage mortgage delinquencies, particularly among loans reaching 120 days past due (DPD)—a critical inflection point in the credit lifecycle that often precedes more serious default outcomes. (Smith, 2025)  While early-stage delinquencies (30 DPD) have remained volatile but directionally flat, the acceleration observed in later-stage delinquency signals a more concerning trend: a growing cohort of borrowers is struggling to recover once they fall behind. Historically, sustained increases at the 120-day mark have been a leading indicator of elevated 180-day delinquencies and higher foreclosure activity in subsequent quarters. (Smith, 2025)  For lenders and servicers, this shift highlights the importance of taking action before risk becomes fully realized.  A tale of two products: mortgages vs. HELOCs   Interestingly, this deterioration is not evenly distributed across product types. Home equity lines of credit (HELOCs) have continued to show relative stability, with both early- and late-stage delinquency rates holding steady through mid-2025. This resilience likely results in stronger borrower equity positions, more conservative underwriting, and greater borrower flexibility in managing revolving credit obligations.  However, stability should not be mistaken for immunity. Elevated consumer debt, persistent inflationary pressures, and the resumption of certain deferred obligations (including student loans) could introduce risk into home equity portfolios with little advance notice.  The divergence between first-lien mortgage performance and HELOCs reinforces a critical reality: portfolio risk is no longer uniform.  Mortgage risk is increasingly segmented  Today’s risk environment demands more granular analysis. Borrower performance varies significantly based on loan vintage, equity position, income volatility, and broader household debt burdens. Late-stage mortgage delinquency growth is particularly concentrated among specific borrower segments rather than broadly distributed across portfolios.  This fragmentation means lenders can no longer rely solely on aggregate delinquency metrics. Instead, risk strategies can be differentiated by:  Product type (first mortgage vs. HELOC)  Delinquency stage (early vs. mid vs. late)  Borrower behavior and payment hierarchy  Local economic and labor market conditions  Modern risk frameworks increasingly rely on portfolio-specific modeling, continuous monitoring, and forward-looking indicators, rather than relying on lagging performance metrics.  Moving from reactive to predictive risk management  In a market defined by rapid shifts, reactive servicing strategies are no longer sufficient. The most effective lenders are transitioning toward predictive risk management, using near-real-time data to identify stress earlier in the delinquency curve.  Advanced risk monitoring capabilities enable lenders to:  Detect emerging risk before accounts reach irreversible delinquency stages.  Prioritize outreach and loss-mitigation resources more effectively.  Align intervention strategies with borrower behavior and the likelihood of recovery.  Targeted engagement—whether through proactive borrower communication, modified repayment options, or tailored servicing workflows—can significantly improve outcomes when applied during the mid-stage delinquency window, particularly between 60 and 120 days past due.  Strategic insight: Focus on the middle of the curve  Many risk strategies concentrate on two extremes: fully current accounts and severely delinquent loans. However, the greatest opportunity for loss avoidance often exists in the middle.  Borrowers in the 60–120 DPD range are frequently still recoverable, especially when interventions are informed by behavioral data rather than static credit attributes. Understanding which borrowers are likely to self-cure versus those trending toward deeper delinquency allows lenders to deploy capital and servicing resources more efficiently. (Smith, 2025)  A data-driven approach to mid-stage delinquency management can help lenders:  Improve loan-level profitability  Reduce servicing and loss-mitigation costs  Limit downstream foreclosure exposure  Strengthen long-term portfolio performance  The bottom line  The recent rise in late-stage mortgage delinquencies is not merely a short-term anomaly—it is an early warning signal. At the same time, stable HELOC performance highlights how risk dynamics can vary significantly across products and borrower segments. (Smith, 2025)  As the market moves through the remainder of 2025, lenders that adopt differentiated, predictive, and data-driven risk strategies will be far better positioned to navigate volatility, protect portfolio performance, and respond decisively as conditions evolve.  The question is no longer whether risk is changing, but whether your organization is equipped to identify and manage it before losses materialize.  Part of the Series: New Players, New Rules: How Direct Mail Is Reshaping Mortgage and Equity Lending    References  Smith, J. (2025). Mortgage delinquency trends. Journal of Housing Finance, 12(3), 45-60.  Doe, A. (2025). HELOC performance stability. Real Estate Economics Review, 18(2), 101-115. 

The mortgage industry stands at a turning point. As acquisition costs climb and regulatory changes reshape long-held practices like mortgage trigger leads, lenders must rethink how they identify and engage qualified borrowers. What’s emerging is a smarter, more strategic approach—one that begins long before a credit application is submitted and leverages alternative data to illuminate borrower readiness, income, and risk.  Traditional lead generation methods, often reliant on credit pulls and costly verification, are becoming less sustainable. Instead, forward-thinking lenders are embracing a layered data strategy—one that aligns each stage of the mortgage funnel with the right type of data at the right time.  Rental History as a Window into Readiness  A consumer’s rental history is far more than a record of where they’ve lived. It’s a powerful signal of their financial behavior, stability, and capacity to take on a mortgage. By analyzing verified rental payment data through sources like Experian RentBureau—the largest such database in North America—lenders can uncover early indicators of income, affordability, and risk.  For instance, rental payments are highly correlated with income, typically showing a 3:1 ratio. This allows lenders to estimate income at the top of the funnel without relying on more expensive, verified income and employment data. It’s a practical way to reduce cost while preserving accuracy in segmentation.  Alternative Data: From Insight to Action  In today’s mortgage market, it’s not just about what data you have—it’s about when and how you use it. A tiered approach to data usage allows lenders to optimize both performance and spend:  Prospecting and Segmentation: Observed data and rental history provide an affordable way to predict income and flag early risk signals without triggering compliance thresholds.  Prequalification: Lightweight verification products help validate consumer-reported income and employment for prequal decisions at a lower cost.  Decisioning: At the underwriting stage, verified income and employment data from trusted sources become critical to ensure compliance and close quality loans.  This progressive framework improves lead quality, reduces fallout, and allows marketing and lending teams to focus their efforts on high-potential borrowers.  Behavioral Indicators That Predict Mortgage Success  Certain data points consistently emerge as predictors of mortgage readiness:  Employment Tenure: Borrowers with more than six months in a verified job are twice as likely to apply for a mortgage.  Rental Payment Behavior: Renters with more than two late payments are four times more likely to become delinquent on their mortgage.  Affordability Thresholds: Consumers tend to feel comfortable with mortgage payments that are 25% to 75% higher than their rent—a range that correlates with lower delinquency and higher satisfaction.  These insights allow lenders to flag risk and readiness early—reducing reliance on one-size-fits-all targeting and creating more meaningful, data-driven engagement.  Preparing for a Post-Trigger Lead Environment  With the elimination of mortgage trigger leads looming, lenders will need to replace reactive lead generation tactics with proactive, insight-driven strategies. Alternative data provides the foundation for this shift. Rather than waiting for a credit inquiry to act, lenders can use rent data, employment patterns, and observed financial behaviors to predict who is most likely to engage—and succeed—on the path to homeownership.  Tools like Experian’s RentBureau and Observed Data platforms enable this transformation by providing access to decision-grade behavioral data earlier in the funnel. These tools not only reduce acquisition costs but also offer a better experience for the consumer—less invasive, more personalized, and more aligned with their financial journey.  Modernizing the Mortgage Funnel  The modern borrower expects a digital-first, seamless experience. For lenders, meeting this expectation requires more than a responsive website or fast application—it requires a reimagined data strategy.  The key is precision. Mortgage lenders that align the right data with the right decision point—from prequal to close—will outperform in efficiency, risk management, and consumer satisfaction. By layering alternative and verified data sources, they can build a funnel that is not only cost-effective but also calibrated to real indicators of borrower success.  Looking Ahead  The future of mortgage lending will be defined by agility, intelligence, and inclusivity. As the market moves away from legacy lead gen tactics and toward data-informed decisioning, the role of alternative data will only grow.  Lenders who adopt this shift early will be positioned to say yes to more borrowers, reduce costs, and deliver a better customer experience. Those who cling to traditional models risk falling behind as the industry evolves.  Now is the time to rethink the mortgage lead strategy. Not just to reduce cost—but to build a better, smarter path to homeownership for the next generation of buyers.  For a deeper dive into how alternative data is transforming mortgage lead generation, watch the recent HousingWire and Experian webinar: “Rethinking Mortgage Lead Strategy: How Alternative Data Sources Can Predict Income, Risk, and Readiness.” Learn how to apply these insights across your funnel—from prospecting to prequalification—and hear directly from Experian product leaders on practical strategies to boost efficiency and performance. Watch the full webinar on demand here.   

A Realignment is underway  The U.S. housing market is no longer waiting on the sidelines. After enduring over two years of historically high mortgage rates, the Federal Reserve began implementing rate cuts in fall 2025, with additional reductions forecast for early 2026. For lenders, this marks more than a turning point—it’s a call to action.  Whether you’re targeting first-time buyers, tracking refinance-ready loans, or watching affordability trends, today’s environment demands rapid, strategic adjustments.  Rate cuts are fueling renewed demand  Mortgage rates, which hovered around 7% for much of the past year, have begun to ease. Even a modest drop has the potential to unlock substantial borrower interest—particularly among the 4.4 million U.S. mortgages now “ripe” for refinance.  Expect a spike in both rate-and-term refinances and cash-out activity, as homeowners look to lower payments or access equity. Lenders must scale up quickly, especially around digital capacity, prescreen targeting, and streamlined closings.  Affordability is still a roadblock—Especially for younger renters  Despite improving borrowing conditions, affordability remains a systemic challenge. The national rent-to-income (RTI) ratio stands at 46.8%, up 7.7% since early 2023. In high-cost states like California and Massachusetts, it exceeds 56%.  Experian data reveals that 62% of renters fall into the low-to-moderate income category, spending over half their income on rent. Over 50% now fall into Near Prime or Subprime credit tiers, making alternative credit data—like rental payment history—vital for inclusive underwriting.  Refinance isn't the only opportunity—Target first-time buyers strategically  Gen Z is now the largest segment of the rental population, and many are financially strained yet aspirational. A major opportunity exists in helping these renters transition to homeownership using expanded credit models and customized offerings.  With Federal Housing Finance Agency (FHFA)-approved models like VantageScore 4.0 and FICO 10T on the horizon, lenders should explore how newer scoring frameworks and rent payment reporting can increase access to mortgage credit.  Region-specific strategies are more important than ever  From Miami to Minneapolis, market conditions vary drastically. Some metros, like Kansas City (+16.7%) and Louisville (+14.2%), are experiencing double-digit rent growth, while cities like Atlanta and Jacksonville are seeing declines.  Lenders must tailor outreach based on local affordability trends, migration patterns, and housing supply constraints. Dynamic analytics tools—like Experian’s Ascend or Mortgage Insights Dashboard—can guide regional strategy at scale.  The supply side may not keep pace  Even with rate cuts stimulating demand, housing supply could remain a bottleneck. Multifamily completions are outpacing starts 1.5 to 1, and single-family construction, though recovering, remains cautious.  In markets with tight supply, reduced borrowing costs may drive up prices faster than inventory can absorb, exacerbating affordability for first-time buyers.  What lenders should prioritize now: Build Refinance Infrastructure: Prepare for increased volume with instant income verification tools like Experian Verify to streamline processes. Target First-Time Buyers: Use rental history, cashflow scores, and rent-to-income metrics to assess nontraditional credit applicants fairly. Get Granular with Geography: Align product offerings with local affordability, vacancy rates, and rent growth. Leverage Self-Service Prescreen Tools: Act on opportunities quickly using Experian’s agile targeting platforms. Model with New Credit Scores: Take advantage of the Experian Score Choice Bundle to test VantageScore 4.0 and FICO 2 side by side. Final Thought: The market is not rebounding—It is realigning  The current housing shift is not a return to old norms—it’s the start of a redefined landscape. Lenders who act decisively, invest in technology, and prioritize inclusivity will lead the next chapter in mortgage growth.  Experian is here to support you—with data, insights, and tools designed for this very moment.   

The Quiet But Real Shift in Mortgage Marketing  Despite the media’s focus on digital advertising, the mailbox is quietly becoming a major battleground again for mortgage and home equity lenders. The environment is ripe for this: interest rates are stabilizing near 7 % (which opens up refinance & home equity demand), and consumer credit profiles remain robust yet tightening in certain segments. For lenders, precision outreach is now a key differentiator.  Why Direct Mail Still Works — and Why It Matters Now  According to a 2025 industry study, direct‑mail marketing continues to deliver the strongest ROI: for example, direct mail’s ROI is cited at ~$58 for every dollar spent, compared with ~$19 for PPC and ~$7 for email. PostGrid  A separate piece notes that physical mail pieces still command attention: “Consumers are more likely to trust physical mail than digital ads … response rates can range from 2% to over 5% depending on targeting and message quality.” KYC Data+2Highnote+2  But the most important reason mail is working now: data + personalization. Lenders who combine accurate consumer/credit/property insight with mail campaigns are seeing better alignment of offers and borrowers. A recent article emphasizes that “when backed by high‑quality data sources and AI‑driven triggers, mortgage direct mail can outperform digital‑only campaigns.” Megaleads  For mortgage & home‑equity marketers specifically, Experian’s data shows direct mail and refined segmentation remain growth levers in a market where originations are modest, but competition for good borrowers is intense. Experian+1  Why this matters now, for lenders:  With rates comparatively high, many borrowers are choosing to postpone purchases or full refinances—but still open to tapping equity. That makes mail‑based offers (especially those tailored with relevant property/equity/credit data) very timely.  Digital advertising is crowded, algorithmic, and increasingly expensive — mail provides a differentiated channel.  The exit or pull‑back of certain large players in home equity creates opportunity gaps.   The Data Speaks: From ITA to Prescreen — and What’s Changing  Here’s a breakdown of key shifts:  In May 2025, for mortgage and home‑equity offers:  Mortgage ITA (Invitation to Apply) volume: ~29.2 million  Home Equity ITA volume: ~25.8 million  Mortgage Prescreen volume: ~15.6 million  Home Equity Prescreen volume: ~19.0 million Experian  Further, recent trends report that home equity direct mail offers have now surpassed first‑mortgage offers in some segments — driven by aggressive marketing and AVM‑based personalization. Experian  The latest data from the ICE Mortgage Technology November 2025 Mortgage Monitor shows that falling mortgage rates have expanded the pool of homeowners who can reduce monthly payments via refinance or access home equity, which in turn supports more targeted direct‑mail outreach. Mortgage Tech  What this means for campaign strategy:  Prescreen (where the lender sends offers to pre‑qualified or high‑propensity segments) is edging into prominence over broad ITA campaigns — because it enables targeted, efficient spend and stronger conversion.  Lenders can use property and credit data (e.g., equity levels, credit score, loan‑to‑value, tenure) to craft mail offers that align with actual borrower situations (not just “Dear Homeowner”).  The gap left by large players exiting or backing off in home equity means agile lenders can expand mail volume and capture incremental market share.   Market Movers: Who’s Winning — and Why  In the direct mail and home-equity space, a mix of established players and newer entrants is reshaping the competitive landscape. Overall mortgage mail volume is being driven by institutions that lean heavily on prescreen strategies and sophisticated, data-driven segmentation. At the same time, leadership in ITA mail offers is shifting away from traditional incumbents toward organizations using more agile marketing approaches and refined offer logic.  Notably, several non-traditional and alternative-model providers now rank among the top mailers in the home-equity category, signaling growing consumer interest in options such as shared equity or sale-leaseback structures. Fintech and digitally native lenders, in particular, are accelerating home-equity prescreen activity; their speed, experimentation, and product innovation are raising expectations for both relevance and simplicity in borrower outreach.  Meanwhile, pullbacks and exits by some large financial institutions have opened meaningful white space in the home-equity market, creating opportunities for others to capture unmet demand.  For lenders looking to compete, the playbook is becoming clearer: rapid testing and iteration, tight coordination between direct mail and digital follow-up, a strong focus on homeowner equity, and precise, data-driven targeting. The most effective campaigns align product design to well-defined segments – for example, borrowers with substantial equity, strong credit profiles, and established tenure – ensuring offers are both timely and highly relevant.  Prescreen vs. ITA: Why Targeting Wins  The shift from broad ITA to prescreen‑based campaigns might seem nuanced, but its implications are strategic:  Prescreen advantages:  Better alignment with borrower creditworthiness and property profile — because you are sending offers to those who meet risk and propensity criteria.  Improved conversion and campaign efficiency — by reducing wasted mailings to low‑probability recipients.  Lower marketing spend per funded loan — because you spend less to reach the right audience.  Faster speed‑to‑market — thanks to platforms that allow weekly refreshed data and custom lists. For example, Experian’s self‑service prescreen platform offers weekly data updates and FCRA‑compliant targeting.  Regulatory and operational clarity — prescreen infrastructure has matured, with aligned credit data, reason‑codes, and compliance built in.  ITA (Invitation to Apply) still has use cases:  When you want to cast a wider net (e.g., first‑time homebuyers, large volume builds)  When brand awareness is a goal rather than immediate action  When the product is straightforward and broader, not highly segmented  But the winning strategy in 2025 and beyond is data‑driven prescreen + targeted direct mail, especially in home equity. As one blog post notes, direct mail campaigns that are personalized can deliver up to ~44% stronger conversions compared with less personalized campaigns. Megaleads  Strategic Opportunities for Lenders & Marketing Teams  Based on the data and competitive shifts, here are actionable recommendations:  Expand Home Equity Prescreen Offers: With home equity direct mail offers now pushing ahead of first‑mortgage offers in volume (and with tappable equity reaching trillions), this channel is ripe. For instance, a recent BCG report estimates ~$18.3 trillion in tappable equity in the U.S. system. BCG Media Publications+1  Leverage the Player Exits: Large institutions reducing or exiting HELOC/home‑equity lines provide space for nimble lenders to increase direct‑mail volume and connect with households previously under‑targeted.  Integrate Multi‑Channel Touchpoints: While mail is the vehicle, the journey often involves digital follow‑up, landing pages, and timely calls. Studies show layering direct mail with digital channels improves results. Highnote+1  Use Data for Targeting, Not Just Volume: Utilize property, credit, income, and behavioral data (from providers like Experian) to identify segments like: homeowners with >30% equity, 5–10 years of tenure, credit score 700+, and interest in renovations or cash‑out use cases.  Speed Matters: Campaigns should be nimble. Weekly data refreshes, agile list creation, rapid mail deployment, and timely follow‑up matter in a competitive environment.  Measure & Optimize: Track response, conversion, ROI per piece. For example, what are funded loans per 1,000 mail pieces? Which segments convert better? Optimize creative, offer, timing.  Stay Compliant & Transparent: Prescreen offers must follow FCRA rules; mail pieces must clearly disclose terms. Consumers and regulators are increasingly sensitive to over‑targeting or over-personalization — balance personalization with respect and transparency.* Megaleads  Putting It All Together: Rethinking Your Direct‑Mail Strategy  If your marketing playbook still treats direct mail as a “safe‑bet, high‑volume fallback”, it’s time for an upgrade. Today’s borrowers expect relevance, personalization, and fast follow‑through. They are homeowners — not just buyers — and many are seeking home‑equity options rather than traditional purchase refis.  Lenders that find success in this space are likely to:  Use data and analytics (credit + property + behavior) to identify the right audience.  Deploy prescreen‑based campaigns rather than generic blanket offers.  Combine direct mail + digital + phone as an orchestrated funnel.  Monitor performance in near real‑time and iterate quickly.  Offer products aligned with what the borrower wants (e.g., interest‑only draw period HELOCs, fixed‑conversion options, etc).  Operate with speed, precision, and compliance.  As the market shifts, the channel is shifting too. Direct mail isn’t dead — it’s evolving, and those who invest in the right mix of data, targeting, creative, and execution stand to win.   Call to Action  Ready to elevate your direct‑mail and prescreen strategy? Contact Experian’s Mortgage & Housing solutions team to explore how our platform enables:  Weekly refreshed, bureau‑grade credit + property data  Self‑service prescreen campaign build and list generation  Custom segmentation using credit, equity, tenure, and product propensity  Compliance‑ready reason codes and targeting workflows* Visit: experian.com/mortgage or speak with your Experian account executive today.   Next in the Series  Blog Post 3 – “Beyond the HELOC: Why the Future of Home Equity Might Not Involve Loans at All”  *Clients are responsible for ensuring their own compliance with FCRA requirements. 

In our latest Experian fireside chat, Unlocking Alternative Data for Smarter Fintech Decisions, two powerhouse voices in the industry, Ashley Knight, SVP of Product Management at Experian, and Haiyan Huang, Chief Credit Officer at Prosper Marketplace, came together for an exclusive discussion on how alternative data is transforming risk, marketing and growth strategies across the fintech space. Now available to watch on demand, the conversation reveals the data-driven innovations that are empowering fintechs to reach new markets, improve decision-making, and build more inclusive financial experiences. What you'll learn During the session, Ashley and Haiyan explored how fintech leaders are utilizing alternative data to address real-world challenges with smarter, more scalable solutions. Topics include: Identity matching redefined: Discover how Individual Taxpayer Identification Numbers (ITINs), Clarity insights, and device intelligence empower fintechs to gain a competitive edge in verifying and validating identities for thin-file or underserved applicants. Precision credit marketing: Learn how email and phone intelligence help fintechs more accurately connect with qualified consumers, driving better engagement and higher conversion rates. Enhanced risk management with real-time data: Discover how Buy Now, Pay Later (BNPL) data and open banking insights are providing fintechs with a more comprehensive view of consumer financial behavior, beyond what traditional credit scores can reveal. To understand how fintech professionals are approaching alternative data, we asked attendees to weigh in throughout the webinar. Here's what we learned: What the audience had to say Which alternative asset is most important for the underwriting of the insurance? 50% chose open banking. 38% selected behavioral/device intelligence. 12% pointed to asset ownership. Takeaway: Open banking is leading the way, but fintechs are clearly embracing a multi-dimensional data approach. 2. Are you currently using ITINs or planning to in the future? 53% said yes. 47% said no. Takeaway: The adoption of ITINs is gaining momentum, supporting efforts to expand access to underrepresented segments. 3. What’s the most compelling reason to use open banking data? 70% said to better assess risk. 10% said to say yes to more consumers. 10% said to price more effectively.  10% said to improve marketing and personalization. Takeaway: Risk assessment remains the top use case, but marketers and pricing teams are starting to take notice. Why it matters Alternative data isn’t just a trend; it’s a response to the urgent need for smarter, more inclusive lending models. As fintechs continue to grow, the ability to reach new audiences, personalize offers, and manage risk with greater accuracy is no longer a competitive advantage; it’s a requirement. Whether you're already integrating cash flow, open banking, and behavioral insights, or just beginning to explore the possibilities, this webinar offers valuable frameworks and firsthand examples from industry leaders who are putting alternative data into action. Don’t miss this opportunity to catch up on the conversation that's helping define the future of fintech innovation. Watch on-demand webinar

Rental affordability in the U.S. isn’t just about rising prices—it’s about where those increases are happening. Some cities and states are becoming increasingly unaffordable compared to others, and renters are feeling the financial pressure differently across the country.  Not all rent increases are equal  National rent prices have increased by about 16% in two years, but where you live plays a huge role in how much of your paycheck goes toward housing. In places like California and Massachusetts, the average renter now spends over 56% of their income on rent. That’s nearly double the “affordable” threshold of 30%.  But even traditionally affordable states are feeling the heat. Oklahoma, Kentucky, and Louisiana all saw rent hikes between 6% and 10%—with Oklahoma topping out at 9.7%. These increases are hitting renters in places that used to be considered “safe” from housing inflation.  Regional breakdown:  Here’s how the rent-to-income ratio compares across regions:  West: Rent-to-income ratio of 46.4%  Northeast: 48.1%  South: 43% (but fastest-growing burden)  Midwest: 37.7% (still below the national average, but climbing fast)  Florida, for example, saw its rent-to-income ratio jump by 12.1% since 2023. Arizona isn’t far behind, with an 11.7% increase. These changes are tied to migration patterns—many people moved to these states during the pandemic, and now demand is far outpacing supply.  City-level surprises  Some of the biggest rent increases are happening in cities you might not expect:  Miami, FL: Up 21.1% YOY  Kansas City, MO: Up 16.7%  Louisville, KY: Up 14.2%  Chicago, OH: Up 13%  On the flip side, a few cities have seen rent drops:  Jacksonville, FL: Down 3%  Atlanta, GA: Down 2.2%  Austin, TX: Essentially flat  These shifts show how local economic factors and population trends can quickly change a market’s affordability.  More renters are moving—and struggling to settle  Another sign of pressure: renters are on the move. The percentage of renters with more than one lease has jumped since 2023, especially among Gen X and older millennials. People are relocating more often—sometimes chasing affordability, sometimes being priced out.  At the same time, vacancy rates are rising—from 6.6% to 7.1% nationally. That may sound good for renters, but it’s often a sign of mismatch: more units are being built, but not always where people can afford them.  The bottom line  If you’re a landlord or investor, these geographic insights matter. Rent pressure isn’t universal—but knowing where it’s concentrated can help you adjust screening, pricing, and retention strategies. For renters, this means being more informed and prepared before moving or signing a lease.  In our final post, we’ll explore the macro trends shaping the future—like mortgage rates, construction slowdowns, fraud risks, and how better data is helping landlords and lenders keep up. 

Credit marketing is entering a new era of precision. Data privacy, personalization and digital-first expectations are rewriting the playbook for financial services marketers. The winners in 2026 won’t just optimize; they’ll orchestrate, using connected intelligence — the linking of data, AI models and insights across platforms — to find, know and grow the right customers. Our latest checklist breaks down what it takes to compete in this new environment, including how to: Master the new prospecting formula Use data to drive personalization at scale Create cohesive, compliant messaging across channels Whether your focus is to expand your portfolio, deepen existing relationships or improve marketing efficiency, this checklist can help you drive stronger, smarter growth all year round. And if you're interested in diving deeper, register for our upcoming webinar on January 15, 2026 to hear directly from Experian experts. Access checklist Register for webinar

The U.S. housing market is no longer waiting on the sidelines. After enduring over two years of historically high mortgage rates, the Federal Reserve began implementing rate cuts in fall 2025, with additional reductions forecast for early 2026. For lenders, this marks more than a turning point—it’s a call to action. Whether you’re targeting first-time buyers, tracking refinance-ready loans, or watching affordability trends, today’s environment demands rapid, strategic adjustments. Rate cuts are fueling renewed demand Mortgage rates, which hovered around 7% for much of the past year, have begun to ease. Even a modest drop has the potential to unlock substantial borrower interest—particularly among the 4.4 million U.S. mortgages now “ripe” for refinance. Expect a spike in both rate-and-term refinances and cash-out activity, as homeowners look to lower payments or access equity. Lenders must scale up quickly, especially around digital capacity, prescreen targeting, and streamlined closings. Affordability is still a roadblock—Especially for younger renters Despite improving borrowing conditions, affordability remains a systemic challenge. The national rent-to-income (RTI) ratio stands at 46.8%, up 7.7% since early 2023. In high-cost states like California and Massachusetts, it exceeds 56%. Experian data reveals that 62% of renters fall into the low-to-moderate income category, spending over half their income on rent. Over 50% now fall into Near Prime or Subprime credit tiers, making alternative credit data—like rental payment history—vital for inclusive underwriting. Refinance isn't the only opportunity—Target first-time buyers strategically Gen Z is now the largest segment of the rental population, and many are financially strained yet aspirational. A major opportunity exists in helping these renters transition to homeownership using expanded credit models and customized offerings. With Federal Housing Finance Agency (FHFA)-approved models like VantageScore 4.0 and FICO 10T on the horizon, lenders should explore how newer scoring frameworks and rent payment reporting can increase access to mortgage credit. Region-specific strategies are more important than ever From Miami to Minneapolis, market conditions vary drastically. Some metros, like Kansas City (+16.7%) and Louisville (+14.2%), are experiencing double-digit rent growth, while cities like Atlanta and Jacksonville are seeing declines. Lenders must tailor outreach based on local affordability trends, migration patterns, and housing supply constraints. Dynamic analytics tools—like Experian’s Ascend or Mortgage Insights Dashboard—can guide regional strategy at scale. The supply side may not keep pace Even with rate cuts stimulating demand, housing supply could remain a bottleneck. Multifamily completions are outpacing starts 1.5 to 1, and single-family construction, though recovering, remains cautious. In markets with tight supply, reduced borrowing costs may drive up prices faster than inventory can absorb, exacerbating affordability for first-time buyers. What lenders should prioritize now • Build Refinance Infrastructure: Prepare for increased volume with instant income verification tools like Experian Verify to streamline processes. • Target First-Time Buyers: Use rental history, cashflow scores, and rent-to-income metrics to assess nontraditional credit applicants fairly. • Get Granular with Geography: Align product offerings with local affordability, vacancy rates, and rent growth. • Leverage Self-Service Prescreen Tools: Act on opportunities quickly using Experian’s agile targeting platforms. • Model with New Credit Scores: Take advantage of the Experian Score Choice Bundle to test VantageScore 4.0 and FICO 2 side by side. Final Thought: The market is not rebounding—It is realigning The current housing shift is not a return to old norms—it’s the start of a redefined landscape. Lenders who act decisively, invest in technology, and prioritize inclusivity will lead the next chapter in mortgage growth. Experian is here to support you—with data, insights, and tools designed for this very moment.

In today’s fast-evolving digital landscape, fraud prevention is no longer a reactive function, it’s a strategic imperative. As financial institutions, fintechs and government agencies face increasingly sophisticated threats, the need for scalable, transparent and AI-powered solutions has never been greater. Experian stands at the forefront of this transformation, delivering proven technology, unmatched data intelligence and regulatory-ready innovation that empowers organizations to stay ahead of fraud. One platform. Every fraud challenge. Experian’s fraud prevention ecosystem delivers scale, speed and sophistication. Unlike fragmented solutions that require patchwork integrations, Experian offers a unified platform that spans the entire fraud lifecycle from identity verification to transaction monitoring and case management.  With the exciting acquisition of NeuroID, Experian is delivering more value than ever before with our shared commitment to staying ahead of emerging fraud threats.   Embedding NeuroID’s behavioral expertise into Experian’s data systems and platforms is transformative. Together, we’re redefining what fraud prevention can look like in a real-time, AI-driven world. – Kathleen Peters, Chief Innovation Officer, Experian With tools like NeuroID, FraudNet and Precise ID, Experian delivers real-time decisioning and orchestration across diverse use cases. These technologies are not just buzzwords, they’re battle-tested engines driving measurable impact across millions of daily decisions. Data dominance that drives accuracy Experian’s proprietary datasets and global consortia provide unparalleled access to fraud intelligence. This data advantage enables clients to detect anomalies faster, reduce false positives and optimize fraud strategies with precision.  Experian supports over five billion fraud events annually across the largest banks, fintechs and government agencies. That’s 10x more fraud and identity use cases than most competitors can manage across industries and institutions of all sizes. AI innovation with guardrails While many vendors are just beginning to explore AI, Experian has spent the last two decades embedding it into its core products and services. The launch of the Experian Assistant for Model Risk Management exemplifies this commitment. Integrated into the Ascend Platform and powered by ValidMind technology, this AI assistant streamlines model governance, enhances auditability, and accelerates deployment, all while remaining compliant with evolving regulations. Experian’s AI is not a black box. It’s explainable, auditable and developed with governance in mind. This transparency gives clients the confidence to innovate without compromising compliance.  Compliance is built in, not bolted on Experian’s solutions are designed with compliance at the core. From FCRA and GLBA to KYC and CIP, Experian has a long-standing track record of aligning with regulatory frameworks. The company’s ability to demystify machine learning and make it transparent and explainable sets it apart in an industry where trust is paramount. As AI adoption accelerates, Experian’s governance models ensure that innovation doesn’t outpace accountability. Clients benefit from automated documentation, synthetic data generation and model transparency which are all essential for navigating today’s complex regulatory landscape. Empowering clients to own their outcomes Experian doesn’t just deliver tools, it empowers users. With self-service model building, clients can customize fraud strategies, optimize performance, and respond to threats in real time. This flexibility ensures that organizations aren’t just reacting to fraud, they’re proactively shaping their defenses.  Experian’s fraud prevention solutions are designed to be intuitive, scalable, and user-centric, enabling teams to make smarter decisions faster. A global brand you can trust Trust is earned, not claimed. Experian’s decades-long commitment to data stewardship, innovation and client success has made it a globally recognized authority in fraud prevention. With thousands of enterprise clients and strategic partnerships, Experian delivers unmatched reliability and scale. From supporting the largest financial institutions to enabling fintech startups, Experian’s infrastructure is built to manage complexity with confidence. Thought leadership that moves the industry  Experian continues to lead the conversation on fraud prevention and identity verification. As a sponsor of the 2025 Federal Identity Forum & Expo, Experian showcased its latest innovations in behavioral analytics and fraud detection, helping government agencies stay ahead of evolving threats.   The company’s U.S. Identity & Fraud Report, now in its tenth year, provides actionable insights into shifting fraud patterns and consumer behavior reinforcing Experian’s role as a trusted thought leader. In a market flooded with noise, Experian delivers clarity. Its unified fraud prevention platform, backed by decades of AI innovation and regulatory expertise, empowers organizations to protect their customers, optimize operations, and lead with confidence. Experian isn’t just keeping up with the future of fraud prevention, it’s defining it. Learn more

E-commerce is booming. Global online sales continue to rise with forecasts predicting growth to $7.89 trillion by 2028. 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. 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. 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

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 

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

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

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. Experian Decisioning 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