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In the dynamic consumer credit landscape, understanding emerging trends is paramount for fintechs to thrive. Experian's latest fintech trends report provides deep insights into the evolving market, shedding light on crucial areas such as origination volumes, average loan balances, and delinquency trends. Let's delve into some key findings and their implications for fintech lenders. Fintech lending origination volume trends The report reveals intriguing shifts in origination volumes for unsecured personal loans and credit cards. While overall origination amounts dipped, fintechs experienced a notable decrease, signaling potential challenges in funding availability and economic uncertainties. Despite this, the total origination volume for fintechs remains robust, underlining their continued significance in the market. Fintech market share versus traditional lenders Fintechs, known for their agility and digital prowess, witnessed fluctuations in market share, particularly in the unsecured personal loan segment. While digital loans continue to drive a significant portion of originations, there's a discernible shift in market dynamics, urging fintech lenders to explore diversification strategies, including expanding into credit card offerings. Fintech lending average loan balance trends Amidst changing economic landscapes, average loan balances for both unsecured personal loans and credit cards exhibited intriguing patterns. Fintech lenders, although maintaining a competitive edge in average balances, face the challenge of balancing risk and profitability, especially amidst rising delinquency levels. Fintech lending delinquency trends One of the most critical aspects highlighted in the report is the uptick in delinquency levels for unsecured personal loans and credit cards. While fintechs navigate through economic uncertainties, there's a growing imperative to enhance risk management strategies and focus on prime and above credit tiers to mitigate potential risks. Understanding the digital borrower As digital borrowing continues to gain prominence, it's essential for fintechs to grasp the nuances of the digital borrower. With millennials emerging as key players in the digital lending landscape, fintechs must tailor their offerings to cater to the unique preferences and behaviors of this demographic segment. Looking ahead to 2024 for fintech lenders As we look to the future, data-driven decision-making and strategic portfolio management are more important than ever for fintechs. With economic uncertainties still in the mix, fintechs must leverage data and analytics to fuel growth while safeguarding against potential risks. Experian's fintech trends report serves as a guiding beacon, equipping fintechs with the knowledge and strategies needed to navigate through uncertainties and unlock opportunities for sustainable growth. The report offers actionable insights, including the imperative to conduct periodic portfolio reviews, retool data analytics and models, and remodel lending criteria to stay ahead in the competitive landscape. Learn more about our fintech solutions and how we can work together to drive profitable growth for your company. Learn more Download the report About the report: Experian's Fintech Trends Report 2024 offers a comprehensive analysis of credit trends, leveraging data from January 2019 to November 2023. The report provides valuable insights into the evolving landscape of unsecured personal loans and credit cards, empowering fintechs with actionable intelligence to thrive in a competitive market environment.

Where in the U.S. would you guess first-time homebuyers are having the most success securing a mortgage? The answer may surprise you. While over one-third of first-time homebuyers reside in our most populous states, California, Texas, Florida, and New York, research from Experian Mortgage reveals they are having greater success securing a mortgage in more affordable locations, such as Minnesota, Iowa, and Indiana. Understanding who is buying properties around the nation and what drives their decision provides insight into where they are buying and why. This knowledge paves the way for mortgage lenders to create more targeted and effective marketing strategies to gain trust and win loyal borrowers. As discussed in a recent blog post on generational behaviors, Generation Z (Gen Z) and Generation Y (Gen Y) account for a sizeable majority of first-time homebuyers and nearly half of repeat buyers. Mortgage lenders who understand what motivates these young buyers and meet them where they are will be better positioned to win. Why understanding buyer traits and their motivations matters Nearly 70% of all renters are in their early 40s or younger. With rents up more than 30% since before the COVID-19 pandemic, many Americans yearn for the stability that homeownership brings to their financial well-being. Younger buyers are increasingly focusing on their overall financial health. Experian's survey of more than 2,000 millennial and Gen Z consumers across the United States revealed: ‘Better understanding personal finance’ is a goal for most consumers within both groups. Nearly 70% are actively searching for a trusted source for personal finance information. Over 30% of first-time homebuyers have a household income under $90,000 annually. They want to make decisions that align with their financial goals and position themselves well for the future, which is likely why we are seeing a higher concentration of first-time homebuyers converting in lower cost of living areas, such as the mid-west. Even for a mortgage lender outside of the geographically preferred states, those who understand their areas with minute specificity and know where opportunity and affordability meet will be best positioned for these buyers. Why strategically positioned lenders will win the day Affordability remains the operative word. The housing supply shortage heavily impacts affordability.  A lack of new housing construction and limited existing home sale inventory contributed largely to the limited for sale stock. Lower interest rates can influence the affordability outlook, but rising inflation and the Federal Reserve not yet moving to lower rates has resulted in mortgage interest rates creeping upward this year.1 Additionally, overall economic indicators influence the housing market. While the Federal Reserve does not directly dictate mortgage interest rates, mortgage rates are influenced by the actions they take. Federal Reserve Chairman Jerome Powell’s recent remarks that the Fed will not likely lower rates until much later in the year due to inflation signals mortgage rates are unlikely to decrease soon.2 Mortgage lenders who dive into buyer behaviors, geographical nuances, and truly service these potential buyers will benefit. By employing market and buyer savvy strategies that resonate, you can drive both short and longer-term business growth. For more information about the lending possibilities for first-time homebuyers, read our latest white paper and visit us online. Download white paper Learn more 1 “Mortgage Rates Move Toward Seven Percent as Markets Digest Incoming Data,” freddiemac.com 2 “Federal Reserve Issues FOMC Statement,” March 20, 2024, federalreserve.gov

Financial institutions are constantly searching for ways to engage their consumers while providing valuable services that keep them financially sound and satisfied. At the same time, consumers are looking for ways to limit their risk and grow their financial power while improving and protecting their financial health. Here’s the good news: both can be accomplished through personalized financial experiences. But first, we need to explore why market conditions and consumer demand deem these experiences necessary. An uncertain market landscape leads to lower consumer financial confidence Volatile market conditions have caused consumer sentiment to decline. The United States (U.S.) Federal Reserve reported that bank deposits have dropped over $200B1 year over year, and experts are anticipating another drop soon. According to our recent State of the Economy Report, personal savings rates in the U.S. have dropped by 4.1% YoY2. And according to a Financial Health & Advice Satisfaction Study from J.D. Power, nearly a third of bank customers have moved deposits away from their primary banks.3 In addition, interest rates and lending standards are weighing heavily on originations, with slowdowns occurring across market segments. As a result, fewer consumers are opening new lines of credit, limiting their purchasing power and hindering revenue growth for financial institutions. These stats reveal evidence of an overall decrease in consumers’ economic power and confidence in financial institutions. However, these circumstances also present a unique opportunity for banks and lenders to stand out by offering high-value solutions that meet consumer demands. Consumers want financial protection and support In response to the constantly growing threat of identity theft, most consumers expect financial institutions to offer protective measures to help decrease their risk of identity theft and fraud. 57% of consumers want their primary bank to provide an identity protection solution, and when fraud occurs, consumers hold their banks accountable4. 58% of consumers say it’s not their responsibility to protect their own personally identifiable information, and 60% say their financial institution is responsible for making them whole again if identity fraud occurs.5 While consumers need identity protection, financial institutions need new ways to engage their customers and drive more revenue. Fortunately, offering identity protection and credit education is an effective way to maintain a sticky relationship with your customers while delivering an enhanced, engaging experience. Engaged consumers drive revenue The combination of identity protection and credit education solutions can have a positive impact on consumer engagement. Research shows that consumers who interact with financial management features spend more with their banks; a recent MX case study found that consumers opened twice as many credit cards and three times as many savings accounts when interacting with a bank’s financial management solutions6. This can lead to a potential 20% increase in revenue for financial institutions, according to a Global Banking Consumer Study from Accenture.7 Credit monitoring also plays an important role in bolstering consumer engagement. For example, credit alerts can lead to an average of 53% open rates and 75% post-alert login rates.8 In addition, financial management features can drive consumers to spend 3X more time in a bank’s financial app environment.9 These engaged consumers may have a greater potential to open more new accounts, borrow more, and remain loyal, long-standing customers. The key is to offer these solutions through personalized financial experiences. Getting started Join us on Thursday, May 30 as we share insights into monetizing personalized financial experiences through identity protection, credit education, and fraud protection and restoration. Get ready to learn the formula for how to: Increase upsell and cross-sell opportunities De-risk client portfolios Drive more wallet share Generate persona data Raise consumer credit limits Register now 1US savers get savvy ditching and switching banks, BBC, April 16, 20232State of the Economy Report, Experian®, June 20233J.D. Power Financial Health & Advice Satisfaction Study, 20234Javelin, 2022 Identity Fraud Study Shifting Angles5Javelin, 2022 Identity Fraud Study6MX Case Study Research, October 20227Accenture, Global Banking Consumer Study, Reignite Human Connections, August 20228Experian® D2C Financial Management reported as of May 20239Experian® Employee Benefits Financial Management as of May 2023