Experian Innovation Lab Celebrates 15 Years of Transforming Industries

Homeownership has long been the foundation for financial security, stability, and generational wealth. But for millions of Americans, especially younger renters, the dream of buying a home can feel out of reach. We recently surveyed U.S. renters[1] to better understand their outlook on the prospects of owning a home. The findings reveal a surprising sense of optimism: nearly half (47%) believe they’ll be ready to purchase a home within the next four years, and that figure jumps to 67% when looking over the next eight years. Gen Z and Millennials, in particular, see a future where they will step confidently into homeownership. This optimism is encouraging, but it also underscores the responsibility we share as an industry to help these aspirations become reality. Data plays a significant role. Why modern credit scores matter Every lending decision and credit score is built on a foundation of good data. And in the mortgage market, we believe data has the power to change lives and turn today’s renters into tomorrow’s homeowners. Recent changes in the industry, including the Federal Housing Finance Agency (FHFA) and Director Pulte’s approval of VantageScore® 4.0 for use in mortgage decisions, are a testament to the value of data. Unlike traditional models, VantageScore 4.0 considers alternative data, including rental payments, that reflect how consumers manage their everyday financial commitments. Now, with the introduction of more modern scores in mortgage lending, millions of responsible renters can have a fairer shot at achieving their dreams of homeownership. For renters, this move is significant. Paying rent on time can be a strong indicator of readiness for homeownership, yet it historically wasn’t factored into mortgage credit scoring. Building on Director Pulte’s move to make VantageScore 4.0 available for use in the mortgage market, as well as his call to uncover creative ways to make credit scoring more competitive and mortgages more affordable for Americans, we recently took the step to offer VantageScore 4.0 for free to mortgage lenders. As the first credit reporting agency to include positive rental payments on credit reports, and operator of the industry’s largest rental database with nearly 40 million rental profiles, we understand how beneficial predictive data, such as on-time rental payments, can be for improving consumers’ creditworthiness. We’re well equipped to help the industry leverage these insights while helping renters use their positive payment history to their advantage. This change is an example of how smarter data can create a more inclusive financial system. A shared opportunity for the industry Today’s renters are motivated, ambitious, and ready to invest in their futures. As industry leaders, we have a responsibility and an opportunity to meet them where they are with modern tools and better data. Together, we can help more people unlock the door to homeownership, strengthen financial resilience, and ensure the next generation of homeowners is equipped to thrive. [1] Experian commissioned Atomik Research to conduct an online survey of 2,005 adults throughout the United States. The margin of error is +/- 2 percentage points with a confidence level of 95 percent. Fieldwork took place between May 15 and May 20, 2025.

Across financial services, conversations centered about the power of data, including insights gathered through open banking, are becoming more common – for good reasons. These insights offer a dynamic and holistic view of consumer financial health, capturing not just what has happened in the past, but how consumers are managing their money today. At Experian, we’ve always believed in the power of data to drive financial inclusion. That’s why we’ve combined the full strength of our industry-trusted credit data and alternative data assets with rich, consumer-permissioned cash flow information to create something entirely new: the Experian Credit + Cashflow Score. This innovative model harnesses the unmatched depth and quality of Experian data to deliver a more predictive, fair, and forward-looking view of creditworthiness. We’ve long believed in a future where the power of credit data is augmented by cash flow insights to drive inclusion. And with this new score, we’re taking an important step forward in making that vision a reality. Credit + Cashflow Score serves as a catalyst for a transformative shift in how lenders evaluate creditworthiness. One where innovation and inclusion move hand in hand. This is the latest example of how Experian is moving the industry toward a more connected, transparent, and equitable financial future. Bringing the Best of Credit and Cash Flow Together This is the first credit score to combine the predictive strength of consumer-permissioned cash flow data with our industry-trusted, differentiated data assets, including: Credit data, detailed credit account information on more than 220 million U.S. consumers. Trended data, providing a 24-month view of how consumers manage credit over time. Clarity Services data, the nation’s largest alternative credit bureau, expanding visibility into tens of millions of consumers who use nontraditional financial services and may otherwise lack traditional credit histories. By merging these powerful sets into a singular score, we’re helping lenders unlock a more complete and accurate understanding of consumer creditworthiness – enhancing predictive performance by over 40% when compared to conventional credit scores. Simply put, Experian Credit + Cashflow Score represents the next generation of credit scoring—bringing together the power of traditional credit data and real-time bank transaction insights to create a smarter, fairer system that works better for everyone. Powering Financial Opportunity for All The future of credit decisioning is transparent, inclusive, and powered by data that truly reflects how people live today. As we look forward to this, it’s critical we lean not just on the data itself, but on the infrastructure, trust and stewardship that support it. We are uniquely capable of meeting this moment and enabling our clients to leverage the combined power of cash flow information and differentiated data at scale to drive better consumer outcomes, expand access to credit and ultimately bring financial power to all. As lenders embrace open banking and real-time analytics, Experian is setting the standard for what’s next: responsible innovation that balances opportunity with trust.

Trust begins with knowing who you’re doing business with. In financial services, trust depends on identity verification, protecting people and institutions from fraud while enabling seamless digital experiences. Experian has been named a Leader in the IDC MarketScape: Worldwide Identity Verification in Financial Services 2025 Vendor Assessment (doc #US52985325, September 2025). We believe this recognition reflects years of innovation in data, analytics, and AI to make digital trust simpler and more secure. Rethinking Verification for a Digital World Identity verification has evolved beyond static data checks. Today, it means interpreting signals across systems in real time. Financial institutions must prevent fraud without slowing legitimate customers, and Experian’s Ascend Platform™ helps strike that balance. It unites diverse data sources with intelligent analytics and decisioning tools so organizations can confidently verify identities. “We’re constantly listening to clients and evolving our capabilities, integrating AI, behavioral analytics, and new approaches like ‘know your agent’ to stay ahead of emerging risks,” said Keith Little, President of Experian Software Solutions. From Data to Confidence Experian was recognized for the following strengths: Access to a broad and diverse range of proprietary identity and credit data sources enables multilayered verification across different financial services use cases. The platform incorporates risk-based authentication, progressive onboarding, and behavioral analytics that enable fraud detection with reduced friction. NeuroID integration expands capabilities in behavioral monitoring, including detection of fraud rings and bot behavior during digital onboarding. “Experian demonstrates strength in identity verification by combining broad data assets with scalable workflows,” said Sam Abadir, Research Director for IDC Financial Insights. “This offers financial institutions both the consistency required for compliance and fraud prevention, and the dynamism needed to adapt to evolving customer expectations.” Building the Future of Digital Trust The landscape of identity verification is constantly shifting as regulations tighten and fraud tactics evolve.  We lead by transforming vast data into actionable intelligence that protects people, strengthens businesses, and fosters trust. Experian’s identity verification offering is tackling the challenges of today, but equally important is our commitment to staying ahead of what’s next. To learn more. click here: Financial Services 2025 Vendor Assessment.