Fintechs Create Inroads with Credit Education

Published: August 15, 2019 by Joe Talbott

Consumers love to use fintech services for the instant accessibility and convenience they provide; but as more and more providers are entering the financial technology space and offering the same services, it’s harder for consumers to tell providers apart.

Fintech customers, not unlike all seasoned consumers of digital media, are  bombarded with what experts estimate are up to 4,000 to 10,000 digital ads and promotions each day¹. How can fintechs cut through the ‘noise’ to present the right offer at the right time to their customers? By differentiating their product mix with Experian’s premium credit education services.

Providing customers with highly sought-after credit education services can help fintechs create inroads with customers where the competition can’t follow. Experian’s solutions create a valuable user experience that gives customers credit context and the ability to accept curated financial offers at the right time.

Millennials: Sorting Out Financial Milestones

For fintechs, digital-centric millennials are a big opportunity to build relationships⁠—they have an average near-prime credit score of 638², and per the Experian Boost™ 2019 Customer Survey, they have a strong sentiment to further improve their credit standing³.

Consider the example of Mallory, a 23-year-old, recent graduate with a degree in software engineering. Actively recruited by several e-commerce companies, she’s earning a competitive salary in her first post-college job, and comfortably covering the student loan payments she just began making.

Smart and hard-working with a bright future, Mallory takes her finances seriously: She’s never missed a loan payment, failed to pay her rent on time, or overdrawn her checking account. She fits the description of a low risk credit profile but, as she discovered when acquiring her first credit card, her credit score was too low for her to qualify for a no-fee card. What Mallory didn’t understand was the context around the factors powering her credit score.

Credit Education Creates Focus

Things changed when Mallory’s bank added a set of credit-education tools to its mobile app and invited her to check her credit score and learn about managing it. Mallory enrolled in a score-monitoring service, and the mobile app began sending her alerts and follow-up emails, noting her score’s regular increases (and occasional dips), with links to relevant credit-education information. She learned that she hadn’t qualified for a no-fee card because her credit file contained very little information, simply due to her lack of account history. As time went on, Mallory began exploring the e-bank’s credit-education and planning tools and working to build her score.

When fintechs deliver credit education tools and advice based on customers’ individual credit scores, users get valuable help focusing on and prioritizing their financial goals. Experian credit education tools help demystify credit reports and credit scores. They also help individuals understand how they can take action, based on their specific credit usage and habits, to improve their credit scores. Experian’s suite of credit education services can help consumers set score-improvement goals, track their progress, and understand how good credit habits increase borrowing power and reduce costs over time.

The same technology that delivers customized credit advice can give fintechs deeper insights into their customers’ needs and changing creditworthiness. Experian’s exclusive RightOffer platform enables fintechs to show customers highly specific, relevant product offers based on individual credit scores.

Get Educated About Credit Education

Fintechs should take advantage of the opportunity to set themselves apart in a flooded market by offering Experian’s premium credit education services to their customers.

Experian offers flexible turnkey products through an easy-to-use white-label platform or a hosted solution, giving fintechs the ability to offer a comprehensive set of credit-education tools. Want to know more? Download our complimentary eBookHow Credit Education Can Help Fintechs Grow.

  1. RedCrow Marketing, Accessed via the web 2019. https://www.redcrowmarketing.com/2015/09/10/many-ads-see-one-day/
  2. Experian-created statistically relevant aggregate sampling of our consumer credit database that may include use of the FICO®Score 8 version. Different sampling parameters may generate different findings compared with other similar analysis. Analyzed credit data did not contain personal identification information. MSA is the acronym for metropolitan statistical area, which groups counties and cities into specific geographic areas for population censuses and compilations of related statistical data.
  3. Results may vary. Some may not see improved scores or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost.
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