The Digital Future of Consumer Finance

by Guest Contributor 3 min read October 2, 2019

digital future of consumer finance

As customer service continues its rapid shift to digital channels, consumer-finance companies have a powerful opportunity to engage customers and add value to the user experience. Credit education solutions can give customers valuable, personalized information and help lenders deliver relevant, prequalified credit offers that meet customers’ needs.

The digital shift is well under way. The U.S. Consumer Financial Protection Bureau (CFPB), in its 2017Consumer Credit Card Market Report, documents ongoing customer migration to digital platforms for every stage of the consumer interaction with creditors.

In a survey of card lenders the CFPB characterizes as “mass market issuers,” which represent the majority of general-purpose and private-label credit cards issued in the U.S:

  • In the past, mail and in-branch credit applications were the most popular conversion points for lenders, but today digital applications dominate, crushing direct mail as the biggest application generator.
  • Beyond increasing customer acquisition and providing a channel for new applications, digital solutions are reshaping the entire consumer-finance process, creating a new end-to-end experience for banking consumers

As consumers increasingly adopt digital channels for dealing with their finances, consumer finance companies face both a major opportunity and a significant challenge. Digital channels offer a powerful conduit for marketing additional products and services to customers, but fostering customer engagement with platforms can be tricky, as customer expectations are constantly evolving.

The hallmark of digital channels is their convenience, which can be a double-edged sword for financial institutions. Quick, efficient digital services don’t give customers much reason to linger, and that can make it hard to create and act on cross-selling opportunities. So consumer finance companies that hope to boost engagement—and cross-sell opportunities—with their digital platforms must do so with valuable, compelling solutions—ideally interactive financial wellness tools that are personalized and highly relevant to the customer:

Accenture, in its 2019 Global Financial Services Consumer Study, found significant majorities of consumers place high value on services including:

  • Advice that is more relevant to personal circumstances
  • Personalized services/ information that helps to reduce the risk of injury, loss, etc.

Partnering with Experian, enables consumer-finance companies to provide customers with the kind of useful, high-value information customers want: Experian’s Credit Education services can help improve customers’ financial lives, Experian Identity Protection can help detect identity fraud and data theft.

  • Experian’s credit-education services use customer credit data to help them set and track credit-improvement goals.
  • Experian identity protection services can alert consumers immediately when suspicious activity is detected on their accounts (or in the names of their children) and can even help resolve cases of data abuse.

The same access to credit data that powers Experian’s credit education services can help consumer-finance partners precision-target credit offers as their customers’ evolve in their needs and creditworthiness.

Experian offers credit education and identity protection services as turnkey solutions, including fully hosted white-label platforms, hybrid options and APIs. Consumer-finance companies can quickly deploy these solutions, adapted to their own brand, to increase engagement and cross-sell opportunities and add meaningful value to the user experience.

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Cash Flow Insights: Powering the Next Evolution in Lending

For decades, credit data has given lenders a trusted foundation for assessing risk. Now, consumer-permissioned cash flow data is adding another layer of insight into consumers’ financial lives, including income, spending, liquidity and changing financial obligations. The opportunity is significant. Nearly one in five consumers lacks access to or has damaged credit. New Experian research also shows that 60% of consumers who have previously been denied credit or received less favorable terms than expected believe the outcome would have been different if lenders had considered their recent income and banking activity alongside their credit history. 1,2 For lenders, cash flow insights can provide additional context about a consumer’s financial capacity and support more informed underwriting decisions. The next challenge is making those insights easier to use consistently and responsibly at scale. What are cash flow insights? Cash flow insights are derived from consumer-permissioned banking data and provide visibility into how money moves into and out of a consumer’s accounts. Depending on the information available, cash flow data can provide insight into financial behaviors such as: Income and income stability: Regular and irregular income streams and changes over time Spending and recurring expenses: Everyday spending patterns and ongoing financial obligations Account balances and liquidity: Available funds and changes in account balances Debt obligations: Loan payments and other recurring debt commitments Cash flow patterns: How money moves into and out of accounts over time Traditional credit information provides a rich history of how consumers have managed credit. Cash flow insights add context about their current financial activity and capacity, providing lenders with a more complete view of financial health. Cash flow insights can also add predictive value to risk assessment. Experian analysis shows Cashflow Score can deliver up to a 25% lift in predictive performance over conventional credit scores when tailored to targeted risk tiers.3 How lenders can put cash flow insights to work at scale As interest in cash flow insights grows, the conversation is moving beyond what the data can reveal to how financial institutions can use it consistently and responsibly. That requires standardized consumer reporting, clear governance and decision-ready insights that can work within established lending processes. The launch of Experian Cashflow Data Bureau at Vision 2026 reflects this shift from access to adoption. The new consumer reporting agency operates under the Fair Credit Reporting Act (FCRA) and is designed to help financial institutions adopt consumer-permissioned cash flow insights at scale. A key part of that foundation is the cash flow consumer report, which organizes consumer-permissioned banking information into a standardized consumer report regulated under the FCRA. This gives lenders a consistent foundation for incorporating cash flow information into lending decisions while providing consumers with access to the information in their report. Turning greater visibility into better decisions The next evolution in credit isn’t about choosing between traditional credit and cash flow data. Each provides a different perspective. Traditional credit information offers deep insight into how consumers have managed credit over time. Cash flow insights can add context about financial activity and capacity. Bringing those perspectives together can give lenders greater visibility into consumers’ financial health and help them better distinguish between risk and resilience, support more informed decisions and identify opportunities to responsibly expand access to credit. As cash flow adoption continues to grow, its value will come from how effectively it complements the information lenders already use. The opportunity isn't simply to see more data. It's to turn that additional visibility into smarter, more informed decisions. Explore how Experian Cashflow Data Bureau is helping financial institutions put consumer-permissioned cash flow insights into practice at scale. Learn more [1] Federal Reserve Bank of New York, The Market for Credit Building: Demand, Product Characteristics and Consumer Uses, 2026. [2] Experian commissioned Atomik Research to conduct an online survey of 2,000 U.S. adults age 18+. Fieldwork took place July 16–21, 2026. Margin of error: +/- 2.2 percentage points at a 95% confidence level. [3] Based on Experian analysis when Cashflow Score is compared with conventional credit scores, tailored to targeted risk tiers. Predictability based on KS.

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