Industries

Pickup trucks are a staple of the automotive industry. Their utility and versatility allow consumers to haul heavy loads or tow large trailers, making them ideal for blue-collar workers. At the same time, pickup trucks offer a sleek appearance that can be aesthetically appealing. And now, we’re seeing the next evolution of the pickup truck: EVs. According to Experian’s Automotive Consumer Trends Report: Q3 2024, of the 292.1 million vehicles in operation, more than 54 million were pickup trucks. Furthermore, 17.4% of new retail registrations this quarter were pickup trucks, while pickup trucks made up 19.2% of used retail registrations. Interestingly, we’re seeing more consumer demand for EV pickup trucks. Over the last 12 months, the Ford F-150 Lightening made up 42.2% of the EV pickup truck market share, closely followed by the Tesla Cybertruck at 37.9%. Rounding out the top five were the Rivian R1T (14.2%), GMC Hummer EV (4.8%) and Chevrolet Silverado EV (0.9%). Still room for the ICE pickup Although we’re beginning to see EV pickup trucks gain some prominence, the overwhelming majority of pickups on the road are gas-powered. In fact, over the last 12 months, 14.5% of new retail pickup truck registrations were attributed to the Chevrolet Silverado 1500, followed by the Ford-150 at 13.4% and the GMC Sierra 1500 (9.1%). Though, data found the preference flipped for the used side, with the Ford F-150 leading at 18.1% of retail pickup registrations and the Chevrolet Silverado 1500 at 13.9%, followed by the GMC Sierra 1500 (6.2%). With more consumers not only maintaining a keen interest in gasoline pickup trucks, but also moving into the EV space, the current data can be leveraged in more ways than one as professionals diversify their sales strategies while optimizing dealership inventory. To learn more about pickup truck insights, view the full Automotive Consumer Trends Report: Q3 2024 presentation or The Trade Desk Brochure.

Whether consumers are shopping for new credit or experiencing financial stress, monitoring their behavior is crucial — even more so in an ever-changing economy. Our latest infographic explores economic trends impacting consumers’ financial behaviors and how Experian’s Risk and Retention TriggersSM enable lenders to detect early signs of risk or churn. Key highlights include: Credit card balances climbed to $1.17 trillion in Q3 2024. As prices of goods and services remain elevated, consumers may continue to experience financial stress, potentially leading to higher delinquency rates. Increasing customer retention rates by 5% can boost profits by 25% to 95%. View the infographic to learn how Risk and Retention Triggers can help you advance your portfolio management strategy. Access infographic

In 2024, the housing market defied recession fears, with mortgage and home equity growth driven by briefly lower interest rates, strong equity positions, generally positive economic indicators, and stock market appreciation. This performance is notable because, in 2023, economists’ favorite hobby was predicting a recession in 2024. Following a period of elevated inflation, driven largely by loose monetary policy, expansionary fiscal policy, and supply chain disruptions brought on by COVID, economists were certain that the US economy would shrink. However, the economy continued outperforming expectations, even as unemployment rose modestly (Figure 2) and inflation cooled (Figure 3). Source: FRED (Figure 1, Figure 2, Figure 3). So, a good economy is good for the mortgage and home equity markets, right? Generally speaking, this statement was true. As monitored by Experian’s credit database, mortgage originations increased by approximately thirty percent year over year as of November 2024 (Figure 4), and Q3 ’24 pre-tax profit for Independent Mortgage Banks (IMBs) averaged $701 per loan.1 So, business in home lending is good — certainly better than it was during the period when the Fed was raising rates, origination volumes shrank as opposed to grew, and IMB profit per loan turned negative. Source: Experian Ascend Insights Dashboard. What constituted this growth in mortgage lending? As we all know, the Fed has lowered interest rates by 100bps since they started reducing rates in September. The market had priced in the September cut weeks prior to the actual announcement (Figure 5), and the market enjoyed a spike in refinance volume as a result (Figure 6). However, in the lead-up to and following the US presidential election, interest rates spiked back up due to the market’s expectations around future economic activity, which will dampen pressure on refinance volumes even after the recent additional rate drop. The impact of further rate drops on mortgage rates is unclear, and refinance volume still constitutes only around three percent of overall origination volume. Source: Figure 5, Figure 6 (Experian Ascend Insights Dashboard). The shift to a purchase-driven housing market What does this all mean? Our view is that pockets of refinance volume (rate and term, VA, FHA, cashout) are available to those lenders with a sophisticated targeting strategy. However, the data also very clearly indicates that this market is still very much a purchase market in terms of opportunity for originations growth. This position should not surprise long-time mortgage lenders, given that purchase volume has always constituted a significant majority of origination volume. However, this market is a different purchase market than lenders may be used to. This purchase market is different because of unprecedented statistics about the housing market itself. The average age of a first-time homebuyer recently reached a record high of 38. The average age of overall homebuyers in November of this year similarly jumped to a new record high of 56, with homes being “wildly unaffordable for young people.” Twenty-six percent of home purchases are all-cash, another record high, and homeowners have an aggregate net equity position of $17.6 trillion, fueling those all-cash purchases. The market is expensive both from an interest rate perspective and a housing price-level perspective, and those trends are driving who is buying homes and how they are buying them.2 Opportunities for lenders in 2025 What do these housing market dynamics mean for lenders? To begin with, lenders should not spend money marketing mortgages to consumers in their 50s and 60s with large equity positions. These consumers are likely to be in the 26 percent all-cash buyer cohort, and that money will be wasted since mortgages are no longer so cheap that even cash-rich buyers would take them. Further, this equity-rich generation has children, and nearly 40% of those children borrow from the bank of mom and dad to purchase their first home. Since roughly a quarter (albeit a shrinking quarter) of homebuyers are first-time homebuyers, and since 40% of those rely on help from parents to facilitate that purchase, it may make sense for lenders to identify those consumers with 1) children and 2) significant equity positions and to offer products like cash-out refinances or home equity loans/lines to help facilitate those first-time purchases. Data is critical to executing these kinds of novel marketing strategies. It is one thing to develop these marketing and growth strategies in principle and another entirely to efficiently find the consumers that meet the criteria and give them a compelling offer. Consider home equity originations. As Figure 7 illustrates, HELOC originations are strong but have completely stalled from a growth rate perspective. As Figure 8 illustrates, this is despite the market's continued growth in direct mail marketing investment. Although HELOC origination volumes are a fraction of mortgage—around $27b per month for HELOC versus $182b per month for mortgage—there are significantly more home equity direct mail offers being sent per month (39 million) for home equity products as there are for mortgage (31 million) as of October ’24.3 This all means that although many lenders have wised up to the home equity opportunity to the point of saturating the market with offers, few have successfully leveraged targeting data and analytics to craft sufficiently compelling offers to those consumers to convert those marketing leads into booked loans. Source: Figure 7 (Experian Ascend Insights Dashboard), Figure 8 (Mintel). Adapting to a resilient housing market In summary, the housing market, comprised of mortgage and home equity products, has experienced persistent growth over the past year. Many who are reading this note will have benefitted from that growth. However, as we have identified, in many respects housing market growth has 1) been concentrated to some key borrower demographics and 2) many lenders are investing in marketing campaigns that are not efficiently reaching or convincing that key housing demographic to book loans, whether it be a home equity or mortgage product. As such, as we move into 2025, Experian advises our clients to focus on the following three themes to ensure they benefit from this trend of growth into the new year: Ensure you effectively differentiate your marketing targeting, collateral, and offers for the various demographics in the market. Ensure your origination experiences for mortgage and home equity products are modern and efficient. Lenders who force all borrowers through a painful, manual legacy process will waste marketing dollars and experience pipeline fallout. Although the market is growing, other lenders are coming for your current customers. They could be coming for purchase activity, refinance opportunities, or they may be using home equity products to encroach on your existing mortgage relationship. As such, capitalizing on growth in 2025 is not merely about gaining new customers; it is also about retaining your existing book of business using high-quality data and analytics. Learn more 1 Although December numbers are available for year-over-year comparison, we excluded them due to the holiday period's strong seasonality patterns. 2 The Case-Shiller index recently topped out at record levels. 3 Mintel/Comperemedia data.

Transformations in today’s U.S. rental market reflect changing economic and market forces. These dynamic times present challenges and opportunities for property managers and landlords seeking more stability and consistency in their property occupancies. The real estate industry responded positively to the Federal Reserve's recent announcement to cut interest rates by a quarter percentage point, marking a favorable shift from previous actions that kept rates steady. However, uncertainty lingers about the extent and pace of changes in the residential real estate market, including the rental and buying sectors. Experts remain optimistic, predicting improvements as the market heads into next year's busy season. Landlords and property managers looking to attract more stable renters need to understand macro- and micro-market trends, renter demographics and preferences, and other information impacting their specific locales. Experian Housing published its 2024 report on the U.S. rental market, which provides data-driven insights into the current rental landscape. Experts examined today’s renter population, current market trends, the state of housing development, and the market’s future. Who is today’s renter? Today’s renter is still navigating financial constraints and potential marketplace affordability challenges. While location-specific information does influence the affordability of renting versus buying a home, on average, affordability remains an important factor guiding consumer decision-making. Our latest rental report highlights a notable shift in the rental market, with a growing number of younger renters and a decline in the average annual income among renters. According to Experian’s RentBureau®1, over 30% of renters are Generation Z—the youngest adult demographic. Expanding this to include individuals under 34 years old, younger renters now represent over half of all renters in the United States. Experian’s research highlights a shift in rental spending trends, showing the average income for renters now at $52,600. RentBureau data underscores the evolving financial landscape, with rent-to-income (RTI) ratios reflecting a growing commitment to housing. On average, individuals allocate 44.1% of their income to rent, while low-to-moderate-income households dedicate 52.5%. These figures exceed the traditional guideline of keeping rent within 30% of gross monthly income, underscoring the significant economic pressures faced by renters, particularly those with low-to-moderate incomes, as they navigate rising housing costs and limited affordability in the current market. This reality highlights the urgent need for broader systemic solutions to address housing availability and affordability challenges. What is happening in the rental market? Rental market trends reflect several factors, including changes in renter demographics, interest rates, housing supply and demand, and the economy. Overall, vacancy rates have stayed relatively low, which has resulted in rising rent prices, although there are signs of flattening. With fewer housing options available, many renters stay put for longer, which also contributes to availability and affordability. More renters, over 50% of all renters (a 10% increase over May 2023), are paying $1,500 or more in monthly rent, and the nationwide average rent stands at $1,713. A regional look offers greater specific insights for landlords and property managers, which is critical for truly understanding the marketplace. In 2024, 43 of 50 states have RTI ratios above the suggested guideline of 30%. California has the highest median RTI at just over 46%, followed by Massachusetts, Florida, Washington, and New Jersey. Other states facing increasing RTI ratios include Georgia, North Carolina, Colorado, Texas, and Nevada. These high ratios negatively affect affordability. At the same time, Experian Housing research indicates that over 92% of renters hold a single lease over two years. Data also shows 6.7% of renters with two leases in 24 months and others moving three or more times in this timeframe. Older generations, surprisingly, are moving more now than in recent years. Where is development headed? High mortgage rates are constraining housing development, especially for affordable entry-level homes. Roughly 50% fewer starter homes are being built, and multifamily new construction also faces constraints. With that said, multi-family housing units already under construction are coming to market. These units are generally high-end, contributing to increased rental prices. The supply coming to the market is higher-priced due to greater construction costs across the board. Contributors to the rising costs include builds in pricier metropolitan areas as well as features and modern amenities sought after by younger renters. The U.S. Census Bureau reports a slight uptick in new home construction since July 2023. How is the future looking? The U.S. economy is expected to remain stable, which should benefit renters and landlords alike. The outlook for the rental market in 2024 and 2025 remains optimistic with inflation down and the Fed rate cut, but many other factors come into play, specifically, overall economic health and the state of the employment market. For renters, the best tact is to set goals to improve their overall credit profiles and opportunities in the housing market. Individuals benefit from rent reporting. Experian RentBureau helps renters build credit profiles and open the best opportunities for the rental market and moving to the first-time homebuyer market. With rental housing still in high demand, property managers and landlords should focus on tenant screening, rent reporting, and fraud prevention as part of their risk management strategies. Focusing on these areas will increase the chances of finding quality, longer-term tenants. To learn more about the state of the U.S. rental market, download Experian Housing’s 2024 rental report. Access report 1 RentBureau® is the largest rental payment database that contains more than 36 million renter profiles. While RentBureau doesn’t represent the total U.S. rental market population, internal studies reveal RentBureau data aligns closely to historical U.S. Census data studies, which provides confidence in the deeper understandings aggregated in the report.

In today’s digital landscape, where data breaches and cyberattacks are rampant, businesses face increasing security challenges. One of the most prevalent threats is credential stuffing—a cyberattack in which malicious actors use stolen username and password combinations to gain unauthorized access to user accounts. As more personal and financial data gets leaked or sold on the dark web, these attacks become more sophisticated, and the consequences for businesses and consumers alike can be devastating.But there are ways to proactively fight credential stuffing attacks and protect your organization and customers. Solutions like our identity protection services and behavioral analytics capabilities powered by NeuroID, a part of Experian, are helping businesses prevent fraud and ensure a safer user experience. What is credential stuffing? Credential stuffing is based on the simple premise that many people reuse the same login credentials across multiple sites and platforms. Once cybercriminals can access a data breach, they can try these stolen usernames and passwords across many other sites, hoping that users have reused the same credentials elsewhere. This form of attack is highly automated, leveraging botnets to test vast numbers of combinations in a short amount of time. If an attacker succeeds, they can steal sensitive information, access financial accounts, or carry out fraudulent activities. While these attacks are not new, they have become more effective with the proliferation of stolen data from breaches and the increased use of automated tools. Traditional security methods—such as requiring complex passwords or multi-factor authentication (MFA)—are useful but not enough to prevent credential stuffing fully. How we can help protect against credential stuffing We offer comprehensive fraud prevention tools and multi-factor authentication solutions to help you identify and mitigate credential stuffing threats. We use advanced identity verification and fraud detection technology to help businesses assess and authenticate user identities in real-time. Our platform integrates with existing authentication and risk management solutions to provide layered protection against credential stuffing, phishing attacks, and other forms of identity-based fraud. Another key element in our offering is behavioral analytics, which goes beyond traditional methods of fraud detection by focusing on users' data entry patterns and interactions. NeuroID and Experian partner to combat credential stuffing We recently acquired NeuroID, a company specializing in behavioral analytics for fraud detection, to take the Experian digital identity and fraud platform to the next level.  Advanced behavioral analytics is a game-changer for preventing credential-stuffing attacks. While biometrics track characteristics, behavioral analytics track distinct actions. For example, with behavioral analytics, every time a person inputs information, clicks in a box, edits a field, and even hovers over something before clicking on it or adding the information to it, those actions are tracked. However, unlike biometrics, this data isn’t used to connect to a single identity. Instead, it’s information businesses can use to learn more about the experience and the intentions of someone on the site. NeuroID and Experian’s paired fraud detection capabilities offer several distinct advantages in preventing credential stuffing attacks: Real-time threat detection: Analyze thousands of behavioral signals in real-time to detect user behavior that suggests bots, fraud rings, credential stuffing attempts, or any number of other cybercriminal attack strategies.  Fraud risk scoring: Based on behavioral patterns, assign a fraud risk score to each user session. High-risk sessions can trigger additional authentication steps, such as CAPTCHA or step-up authentication, helping to stop credential stuffing before it occurs. Invisible to the user: Unlike traditional authentication methods, behavioral analytics work seamlessly in the background. Users do not need to take extra steps—such as answering additional security questions or entering one-time passwords. Adaptive and self-learning: As users interact with your website or app, our system continuously adapts to their unique behavior patterns. Over time, the system becomes even more effective at distinguishing between legitimate and malicious users without collecting any personally identifiable information (PII). Why behavioral data is critical in combating credential stuffing Credential stuffing attacks rely on the ability to mimic legitimate login attempts using stolen credentials. Behavioral analytics, however, can spot the subtle differences between human and bot behavior, even if the attacker has the correct credentials. By integrating behavioral analytics, you can: Prevent automated attacks: Bots often interact with websites in unnatural ways—speeding through form fields, using erratic mouse movements, or attempting logins from unusual or spoofed geographic locations. Behavioral analytics can flag these behaviors before an account is compromised. Detect account takeovers early: If a legitimate user’s account is taken over, behavioral analytics can detect the change in interactions. By monitoring behavior, businesses can detect account takeover attempts much earlier than traditional methods. Lower false positive rates: Traditional fraud prevention tools often rely on rigid rule-based systems that can block legitimate users, especially if their login patterns slightly differ from the norm. On the other hand, behavioral analytics analyzes a user's real-time behavioral data without relying on traditional static data such as passwords or personal information. This minimizes unnecessary flags on legitimate customers (while still detecting suspicious activity). Improve customer experience: Since behavioral analytics is invisible to users and requires no extra friction (like answering security questions), the login and transaction verification process is much smoother. Customers are not inconvenienced, and businesses can reduce the risk of fraud without annoying their users. The future of credential stuffing prevention Credential stuffing is a growing threat in today’s interconnected world, but with the right solutions, businesses can significantly reduce the risk of these attacks. By integrating our fraud prevention technologies and behavioral analytics capabilities, you can stay ahead of the curve in securing user identities and preventing unauthorized access. The key benefits of combining traditional identity verification methods with behavioral analytics are higher detection rates, reduced friction for legitimate users, and an enhanced user experience overall. In an era of increasingly sophisticated cybercrime, using data-driven behavioral insights to detect user riskiness is no longer just a luxury—it’s a necessity. Learn more Watch webinar

The credit card market is rapidly evolving, driven by technological advancements, economic volatility, and changing consumer behaviors. Our new 2025 State of Credit Card Report provides an in-depth analysis of the credit card landscape and strategy considerations for financial institutions. Findings include: Credit card debt reached an all-time high of $1.17 trillion in Q3 2024. About 19 million U.S. households were considered underbanked in 2023. Bot-led fraud attacks doubled from January to June 2024. Read the full report for critical insights and strategies to navigate a shifting market. Access report

Scott Brown presents at Reuters Next “If I were to look into a crystal ball, traditional lending methodology and processes will not be replaced; they will be augmented by consumers connecting to banks via APIs, contributing the data they are comfortable with, and banks using that in conjunction with historical credit data to offer newer and better products they didn’t have access to before. The convergence of data, tech and AI leads to more financial inclusion and a more modern way of underwriting.”Scott Brown, Group President Financial Services, Experian North America Scott Brown, Group President of Financial Services for Experian North America, recently presented at Reuters Next discussing the transformative power of AI and data analytics in financial services. The session also covered the top challenges that financial institutions face today and how advances in technology are helping organizations overcome those challenges. This keynote presentation was a timely follow-up to Brown’s previous appearance at the Money20/20 conference in Las Vegas, where he revealed the details of Experian’s latest innovation in GenAI technology, Experian Assistant. Brown, in a conversation with TV writer, producer and anchor Del Irani, spoke about the ethical considerations of AI innovation, what the future of underwriting may look like, and how open banking can drive financial inclusion and have a significant positive impact on both businesses and consumers. “If you are extending a line of credit to a given consumer, how do you do so in a way that’s integrated into their everyday lives? That’s where the concept of embedded finance comes in, and how to embed finance into a consumer’s life, and not the other way around.”Scott Brown, Group President Financial Services, Experian North America By embedding finance into consumers’ lives, and not the other way around, organizations can develop better strategies to balance risk and generate more revenue. He also focused on three foundational steps to take advantage of the capabilities AI offers: data quality, transparency, and responsibility. Areas of focus for implementing AI As organizations rely on more sophisticated approaches, data quality inputs are more important than ever. Inaccurate data can lead to poor business decisions that can have a negative impact on organizations’ bottom line. Transparency is also a crucial component of implementing AI solutions. Companies should be able to explain how their models work and why the end results make sense while avoiding biases. Leveraging data with AI tools allows organizations to get a better view of the consumer, which is a goal of most banks and lending institutions. Using that consumer data responsibly is important for financial institutions to establish and maintain trust with the people who use their services. While incorporating AI solutions into everyday business operations is important for financial institutions to better serve their consumers and remain competitive in the industry, a lack of access to AI tools can prevent some organizations from doing so. A fragmented approach leads to higher costs, lower efficiency, and greater risk Until recently, financial institutions have had to rely on several different technology providers and tools to optimize customer experience and operational efficiency while protecting consumers from the risk of identity theft and fraud. This fragmented approach can result in increased costs for organizations and higher risk for consumers. Now, AI technology is solving this issue by integrating functionality into a single platform, such as the Experian Ascend Technology Platform™. This streamlined access to a comprehensive suite of tools can help accelerate time-to-value while also eliminating compliance risks. Full interview available now Brown’s full interview at Reuters Next reveals more details about how Experian is empowering organizations to better serve their consumers’ financial needs through AI innovation while also helping more than 100 million Americans who don’t have access to the mainstream credit ecosystem due to being credit invisible, unscoreable, or have a low credit score. Watch the full interview to learn more about how Experian is continuing to bring financial power to all through innovative technology. Watch the full interview now

Today’s fast-paced, digital-first hiring environment calls for a more comprehensive approach to pre-employment screening. With growing pressure on employers and HR teams to make swift, accurate, and secure hiring decisions, having access to the tools and data to enhance efficiency and security is more important than ever. By evolving beyond traditional screening methods, background screeners can better meet these needs and deliver added value to their clients.  Fraud remains a significant challenge. In fact, fraud scams resulted in a staggering $485.6 billion in losses in 20231 — and hiring teams aren’t exempt from these risks. Fraudulent resumes, synthetic identities, and the risk of non-compliance with evolving regulations create a challenging landscape for pre-employment verifications. What if there was a way to make smarter, faster, and more secure hiring decisions? This article explores how background screeners can optimize pre-employment verification processes, reduce fraud risks, and ensure compliance — all while delivering a positive candidate experience. What is pre-employment screening? Employers conduct pre-employment screenings to thoroughly evaluate job candidates and make informed hiring decisions. It’s designed to verify key details about candidates, such as their identity, employment history, and references among others to assess their suitability for a role and ensure compliance with industry regulations. Enhancing traditional screening processes For decades, pre-employment background checks have been a cornerstone of the hiring process. While effective, many traditional methods face challenges in keeping up with the evolving demands of modern hiring. Delays in hiring: Background checks can oftentimes rely on manual processes, which could extend timelines leading to delays of days or even weeks. This not only slows down hiring cycles but can make it harder for employers to compete for top talent in a tight labor market. Errors and inaccuracies: Human errors, incomplete data, and inconsistencies across systems can lead to missed insights or red flags. Fraudulent activity: As hiring becomes increasingly digital, identity theft and synthetic identities present growing challenges to verifying candidate-provided data.  Regulatory challenges: With regulations like the Equal Employment Opportunity Commission (EEOC) and Fair Credit Reporting Act (FCRA), companies must navigate complex compliance requirements to avoid legal and financial repercussions. 1 in 3 HR professionals report losing top candidates due to slow pre-employment screening processes.2 These challenges highlight the opportunity to build on existing screening practices with tools that enhance speed, provide actionable insights and prevent fraud. Adapting to the evolving fraud landscape Employment fraud is becoming increasingly sophisticated, fueled by trends like the rise of remote work and digital applications. In fact, the employment sector accounted for 45% of all false document submissions in 2023, making it the most targeted industry for fraud.3 From fake references and degrees to synthetic identities created using stolen personal information, the risks are higher than ever. Synthetic identity fraud: This form of fraud — where fake identities are created by combining real and fabricated data — makes up more than 80% of all new account fraud.4 Fake credentials: Many candidates falsify qualifications or work histories to enhance their chances of securing a role. Compliance risks: Failure to verify candidate information accurately can result in legal penalties, brand reputation damage, or internal security breaches. Modernizing pre-employment screening The good news? Experian offers advanced solutions that complement existing screening processes, empowering background screeners to deliver more efficient, secure and reliable results for their clients looking to higher faster, and with greater confidence.  Gain a more holistic view of a candidate’s risk profile: Experian’s nationwide database contains files on more than 245 million credit-active consumers, providing the most current, accurate, and comprehensive information available in the industry. Conduct real-time identity verification: Leverage a range of identity verification solutions to authenticate and verify a candidate’s identity by accessing a breadth set of non-credit and credit data sources to create a robust social footprint that defines each consumer as unique individuals. Integrate advanced fraud detection: Powered by purpose-built analytics and machine learning algorithms, Experian’s fraud detection tools can detect synthetic identities, inconsistencies, and other red flags while ensuring a seamless candidate experience. Enhance compliance efforts: Experian’s solutions are designed to help businesses navigate complex compliance requirements with ease. Fraud prevention playbook in preemployment Uncover essential strategies for fraud prevention and identity verification in employment screening. Download now The pre-employment screening landscape is evolving, and staying ahead requires tools that enhance the efficiency and effectiveness of your processes. Experian’s advanced solutions are designed to complement your existing screening services, helping you reduce fraud risks, maintain compliant, and deliver data-driven insights that empower smarter hiring decisions. Get started today Ready to transform your pre-employment verification process with fraud mitigation and identity verification solutions? Explore our innovative solutions today. Learn more 1 Nasdaq finds scams led to $486 billion in losses in 2023, 2024. 2 Research reveals Candidates’ Frustrations with Hiring Process, 2024. 3 Employment Identity Fraud: Do You Know Who You’re Hiring, 2024. 4 Report: Synthetic identity fraud is growing, 2024.

Electric vehicle (EV) registrations are re-gaining momentum as a wave of more affordable models hit the market, pushing more consumers than ever to make the transition. According to Experian’s State of the Automotive Finance Market Report: Q3 2024, EVs made up 10.1% of new vehicle financing this quarter, increasing more than 30% from last year. Furthermore, 45% of EV consumers leased their vehicle in Q3 2024—resulting in EVs accounting for 17.3% of all new vehicle leasing. Of the top five transacted EV models this quarter, Tesla accounted for three—with the Tesla Model Y leading at 31.8%, followed by the Tesla Model 3 (14.3%) and Tesla Cybertruck (4.9%). Rounding out the top five were the Ford Mustang Mach-E (3.9%) and Hyundai IONIQ 5 (3.7%). Interestingly, data in the third quarter of 2024 found that consumers’ financing decisions vary based on the EV model they’re looking at. For example, 76.5% of consumers purchased the Tesla Model Y with a loan and 13.1% opted for a lease; on the other hand, only 8.5% of consumers bought the Hyundai IONIQ 5 with a loan and 78.7% chose to lease. Despite the rising interest in leasing as more incentives and rebate programs roll out, some consumers still prefer to purchase their EV with a loan. Understanding financing patterns based on different models is key for professionals as they cater to the diverse preferences and determine the long-term viability of certain EVs and their potential for leasing renewals. Snapshot of the overall vehicle finance market As the finance market continues to stabilize, it’s notable that the average interest rate for a new vehicle fell year-over-year, going from 7.1% to 6.6%, respectively. However, average new vehicle loan amounts increased $736 from last year, reaching $41,068 in Q3 2024, and average monthly payments went from $732 to $737 in the same time frame. On the used side, average interest rates saw a slight uptick to 11.7% in Q3 2024, from 11.6% last year. Meanwhile, the average loan amount dropped from $1,195 over the last year to $26,091 this quarter and the average monthly payment declined from $538 to $520 year-over-year. With the overall market shifting and EVs re-sparking interest, automotive professionals should leverage how consumers are purchasing their vehicles based on average payments and the fuel type as more incentives are being offered. Monitoring these insights can unlock opportunities for tailored financing solutions that meet the needs of consumers as preferences continue to evolve. To learn more about automotive finance trends, view the full State of the Automotive Finance Market: Q3 2024 presentation on demand.

Generative AI (GenAI) is transforming the financial services industry, driving innovation, efficiency and cost savings across various domains. By integrating GenAI into their operations, financial institutions can better respond to rapidly changing environments. GenAI is reshaping financial services from customer engagement to compliance, leading to streamlined operations and enhanced decision-making. The strategic role of GenAI in financial services Adopting GenAI in financial services is now a strategic imperative. A 2024 McKinsey report (The State of AI in 2024) notes more than a 10% revenue increase for companies using GenAI. As institutions strive to stay competitive, GenAI provides powerful tools to enhance customer experiences, optimize operations, accelerate regulatory compliance, and expedite coding and software development. Key areas where GenAI is making an impact Enhanced customer engagement Financial institutions use GenAI to offer personalized products and services. By analyzing real-time customer data, GenAI enables tailored recommendations, boosting satisfaction and retention. Streamlining and optimizing operations GenAI automates tasks like data entry and transaction monitoring, freeing up resources for strategic activities. This accelerates workflows and reduces errors. Further, GenAI-driven efficiency directly cuts costs. By automating processes and optimizing resources, institutions can lower overhead and invest more in innovation. Deloitte’s Q2 2024 study found AI automation reduced processing times by up to 60% and operational costs by 25%. Accelerating regulatory compliance GenAI simplifies compliance by automating data collection, analysis and reporting. This ensures regulatory adherence while minimizing risks and penalties. According to a 2024 Thomson Reuters survey, AI-driven compliance reduced reporting times by 40% and costs by 15%. Developer coding support for efficiencies GenAI is an invaluable tool for programmers. It aids in code generation, task automation and debugging, boosting development speed and allowing focus on innovation. Gartner’s 2024 research highlights a 30% improvement in coding efficiency and a 25% reduction in development timeframes due to GenAI. Accelerating credit analytics with Experian Assistant Within the credit risk management space, GenAI offers a powerful solution that addresses some known pain points. These relate to mining vast amounts of data for insight generation and coding support for attribute selection and creation, model development, and expedited deployment. Experian Assistant is a game-changer in modernizing analytics workflows across the data science lifecycle. Integrated into the Experian Ascend™ platform, it’s specifically designed for analytics and data science teams to tackle the challenges of data analysis, model deployment and operational efficiency head-on. Capabilities and skills of Experian Assistant Data tutor: Offers comprehensive insights into Experian’s data assets, enabling users to make informed decisions and optimize workflows Analytics expert: Provides tailored recommendations for various use cases, helping users identify the most predictive metrics and enhance model accuracy Code advisor (data prep): Automatically generates code for tasks like data merging and sampling, streamlining the data preparation process Code advisor (analysis): Generates code for risk analytics and modeling tasks, including scorecard development and regulatory analyses Tech specialist: Facilitates model deployment and documentation, minimizing delays and ensuring a seamless transition from development to production Driving more-informed decisions Adopting GenAI will be key to maintaining competitiveness as the financial services industry evolves. With projections showing significant growth in GenAI investments by 2025, the potential for enhanced efficiencies, streamlined operations and cost savings is immense. Experian Assistant is at the forefront of this transformation, addressing the bottlenecks that slow down analytical processes and enabling financial institutions to move faster, more informed and with greater precision. By integrating the capabilities of the Experian Assistant, financial institutions can leverage GenAI in credit risk management, automate data processes, and develop customized analytics for business decision-making. This alignment with GenAI’s broader benefits—like operational streamlining and improved customer experience—ensures better risk identification, workflow optimization, and more informed decisions. To learn more about how Experian Assistant can transform your data analytics capabilities, watch our recent tech showcase and book a demo with your local Experian sales team. Watch tech showcase Learn more

In the ever-evolving landscape of mortgage lending, efficiency and responsiveness are paramount. Greg Holmes, Chief Revenue Officer at Xactus, shares his insights on how their partnership with Experian has significantly enhanced their operations and client satisfaction. He highlights the dual nature of their relationship with Experian, describing it as strategic and tactical. This multifaceted partnership allows Xactus to swiftly address day-to-day business issues while focusing on long-term strategic goals. Experian’s willingness to listen and incorporate feedback has been a cornerstone of this successful collaboration. Holmes said, "Their willingness to listen to us and take feedback that we've been able to provide has really helped separate them." Commitment to mortgage lending According to Holmes, one of the standout aspects of Experian's service is its unwavering commitment to the mortgage lending process. This dedication is evident in their continuous investment in the sector, which has enabled faster and more accurate loan closures. He also notes, "You can truly see the investment that Experian has put into our space, which has enabled homeowners to close loans faster and more accurately for lenders." Technological advancements and automation Experian's technological advancements have played a crucial role in enhancing Xactus's operations. The integration of Experian Verify, particularly in the verification of income and employment data, has streamlined the process, contributing to the goal of achieving a digital mortgage. This automation speeds up loan origination and closure and ensures greater accuracy and efficiency. Cost control and flexibility Another key benefit of partnering with Experian is the cost control and flexibility it offers. The single price point for orders and the robust integrations with loan-origination software companies have been particularly beneficial. These integrations allow Xactus to leverage Experian's data effectively, providing a seamless experience for lenders and borrowers alike. Greg emphasizes, "They love the fact that it helps with cost control. That single price point with orders has been extremely important." The testimonial from Xactus’ Greg Holmes clearly shows how Experian's proactive approach, technological innovations, and commitment to the mortgage lending industry have made a tangible difference. According to Holmes, by listening to client feedback and continuously investing in their services, Experian has positioned itself as a vital partner in the quest for optimal efficiency in mortgage lending. Learn more about Verify

This series will explore our monthly State of the Economy report, which provides a snapshot of the top monthly economic and credit data for financial service professionals to proactively shape their business strategies. The U.S. economy remains on solid footing, as GDP grew at a healthy 2.8% rate in Q3, driven by consumer spending. Alongside growth, inflation ticked up, while the labor market eased across several measures. In response to these developments, the Federal Reserve announced a quarter-point cut in November, with another cut penciled in for December. The November State of the Economy report fills in the rest of the macroeconomic story. This month’s highlights include: Annual headline inflation ticked up from 2.4% to 2.6%. 12,000 jobs were added in October, amid hurricane and strike impacts. Retail sales increased by 0.4% in October. Check out the full report for a detailed analysis of the rest of this month’s data, including the latest trends in originations, job openings, and growth. Download November's report As our economy continues to fluctuate, it’s critical to stay updated on the latest developments. Subscribe to our new series, The Macro Moment, for economic commentary from Experian NA’s Chief Economist, Joseph Mayans, with additional economic resources, including our new Election Eve’s Scenario Forecasts report. For more economic trends and market insights, visit Experian Edge.

We are squarely in the holiday shopping season. From the flurry of promotional emails to the endless shopping lists, there are many to-dos and even more opportunities for financial institutions at this time of year. The holiday shopping season is not just a peak period for consumer spending; it’s also a critical time for financial institutions to strategize, innovate, and drive value. According to the National Retail Federation, U.S. holiday retail sales are projected to approach $1 trillion in 2024, , and with an ever-evolving consumer behavior landscape, financial institutions need actionable strategies to stand out, secure loyalty, and drive growth during this period of heightened spending. Download our playbook: "How to prepare for the Holiday Shopping Season" Here’s how financial institutions can capitalize on the holiday shopping season, including key insights, actionable strategies, and data-backed trends. 1. Understand the holiday shopping landscape Key stats to consider: U.S. consumers spent $210 billion online during the 2022 holiday season, according to Adobe Analytics, marking a 3.5% increase from 2021. Experian data reveals that 31% of all holiday purchases in 2022 occurred in October, highlighting the extended shopping season. Cyber Week accounted for just 8% of total holiday spending, according to Experian’s Holiday Spending Trends and Insights Report, emphasizing the importance of a broad, season-long strategy. What this means for financial institutions: Timing is crucial. Your campaigns are already underway if you get an early start, and it’s critical to sustain them through December. Focus beyond Cyber Week. Develop long-term engagement strategies to capture spending throughout the season. 2. Leverage Gen Z’s growing spending power With an estimated $360 billion in disposable income, according to Bloomberg, Gen Z is a powerful force in the holiday market​. This generation values personalized, seamless experiences and is highly active online. Strategies to capture Gen Z: Offer digital-first solutions that enhance the holiday shopping journey, such as interactive portals or AI-powered customer support. Provide loyalty incentives tailored to this demographic, like cash-back rewards or exclusive access to services. Learn more about Gen Z in our State of Gen Z Report. To learn more about all generations' projected consumer spending, read new insights from Experian here, including 45% of Gen X and 52% of Boomers expect their spending to remain consistent with last year. 3. Optimize pre-holiday strategies Portfolio Review: Assess consumer behavior trends and adjust risk models to align with changing economic conditions. Identify opportunities to engage dormant accounts or offer tailored credit lines to existing customers. Actionable tactics: Expand offerings. Position your products and services with promotional campaigns targeting high-value segments. Personalize experiences. Use advanced analytics to segment clients and craft offers that resonate with their holiday needs or anticipate their possible post-holiday needs. 4. Ensure top-of-mind awareness During the holiday shopping season, competition to be the “top of wallet” is fierce. Experian’s data shows that 58% of high spenders shop evenly across the season, while 31% of average spenders do most of their shopping in December​. Strategies for success: Early engagement: Launch educational campaigns to empower credit education and identity protection during this period of increased transactions. Loyalty programs: Offer incentives, such as discounts or rewards, that encourage repeat engagement during the season. Omnichannel presence: Utilize digital, email, and event marketing to maintain visibility across platforms. 5. Combat fraud with multi-layered strategies The holiday shopping season sees an increase in fraud, with card testing being the number one attack vector in the U.S. according to Experian’s 2024 Identity and Fraud Study. Fraudulent activity such as identity theft and synthetic IDs can also escalate​. Fight tomorrow’s fraud today: Identity verification: Use advanced fraud detection tools, like Experian’s Ascend Fraud Sandbox, to validate accounts in real-time. Monitor dormant accounts: Watch these accounts with caution and assess for potential fraud risk. Strengthen cybersecurity: Implement multi-layered strategies, including behavioral analytics and artificial intelligence (AI), to reduce vulnerabilities. 6. Post-holiday follow-up: retain and manage risk Once the holiday rush is over, the focus shifts to managing potential payment stress and fostering long-term relationships. Post-holiday strategies: Debt monitoring: Keep an eye on debt-to-income and debt-to-limit ratios to identify clients at risk of defaulting. Customer support: Offer tailored assistance programs for clients showing signs of financial stress, preserving goodwill and loyalty. Fraud checks: Watch for first-party fraud and unusual return patterns, which can spike in January. 7. Anticipate consumer trends in the New Year The aftermath of the holidays often reveals deeper insights into consumer health: Rising credit balances: January often sees an uptick in outstanding balances, highlighting the need for proactive credit management. Shifts in spending behavior: According to McKinsey, consumers are increasingly cautious post-holiday, favoring savings and value-based spending. What this means for financial institutions: Align with clients’ needs for financial flexibility. The holiday shopping season is a time that demands precise planning and execution. Financial institutions can maximize their impact during this critical period by starting early, leveraging advanced analytics, and maintaining a strong focus on fraud prevention. And remember, success in the holiday season extends beyond December. Building strong relationships and managing risk ensures a smooth transition into the new year, setting the stage for continued growth. Ready to optimize your strategy? Contact us for tailored recommendations during the holiday season and beyond. Download the Holiday Shopping Season Playbook

 Technology has dramatically transformed the financial services landscape, fostering innovation and enhancing operational efficiency. In an interview at this year’s Money20/20 conference, Scott Brown, Group President of Financial and Marketing Services for Experian, sat down with Fintech Futures’ North America Correspondent Heather Sugg to share how Experian is leveraging data, analytics, and artificial intelligence (AI) to modernize the financial services industry. During the discussion, Scott highlighted the recent launch of Experian Assistant — our newest generative AI tool designed to accelerate the modeling lifecycle, resulting in greater productivity, improved data visibility, and reduced delays and expenses. While Experian Assistant is a business-to-business solution built alongside our clients, Scott also noted its broader impact — helping increase credit access for underserved consumers. “At Experian, we’re really focused on addressing the underserved community who doesn’t have access to credit,” said Scott. “And we think that this tool helps lenders reach those customers in an easier way.”  Learn more about Experian Assistant and watch our tech showcase to see the solution in action. Learn more Watch tech showcase

Do you know where your customers stand? Not literally, of course, but do you know how recent macroeconomic changes and their personal circumstances are currently affecting your portfolio? While refreshing your customers’ credit data quarterly works for some aspects of portfolio management, you need more frequent access to fresh data to quickly respond to risky customer behavior and new credit needs before your portfolio takes a hit. Use triggers to improve portfolio management Event-based credit triggers provide daily or real-time alerts about important changes in your customers’ financial situations. You can use these to manage risk by promptly responding to signs of changing creditworthiness or to prevent attrition by proactively reaching out to customers who are shopping for credit. Risk Triggers℠ and Retention Triggers℠ offer a real-time solution that can be customized to fit your needs for daily portfolio management. What are Risk Triggers? Experian’s Risk Triggers alert you of notable information, such as unfavorable utilization rate changes, delinquencies with other lenders and recent activity with high-interest, short-term loan products. This solution allows you to monitor how your customers manage accounts with other lenders to get ahead of potential risk on your book. You can use Risk Triggers to get daily insights into your customers’ activity — allowing you to quickly identify potentially risky behavior and take appropriate action to limit your exposure and losses. Types of Risk Triggers Choose from a defined Risk Triggers package that could help you identify high-risk customers, including: New trades Increasing credit utilization or balances over limit New collection accounts An account is charged-off A credit grantor closes an account New delinquency statuses (30 to 180 days past due) Consumers seeking access to short-term, high-risk financing options Bankruptcy and deceased events How to use Risk Triggers You can use the daily alerts from Risk Triggers to help inform your account management strategy. Depending on the circumstances, you might: Decrease credit limits Close or freeze accounts Accelerate payment requests Continue monitoring accounts for other signs of risk Spotlight on Experian’s Clarity Services events Included in Risk Triggers are events from Experian’s Clarity Services, which draw on expanded FCRA-regulated data* from a leading source of alternative financial credit data.  For example, you could get an alert when someone has a new inquiry from non-traditional loans. These triggers provide a broader view of the customer – offering added protection against risky behavior. What are Retention Triggers? Experian’s Retention Triggers can alert you when a customer improves their creditworthiness, is shopping for new credit, opens a new tradeline or lists property. Proactively responding to these daily alerts can help you retain and strengthen relationships with your customers — which is often less expensive than acquiring new customers. Types of Retention Triggers Choose from over 100 Retention Triggers to bundle, including: New trades New inquiries Credit line increases Property listing statuses Improving delinquency status Past-due accounts are brought current or paid off How to use Retention Triggers You can use Retention Triggers to increase lifetime customer value by proactively responding to your customers’ needs and wants. You might: Increase credit limits Offer promotional financing, such as balance transfers Introduce perks or rewards to strengthen the relationship Append attributes for improved decisioning  By appending credit attributes to Risk and Retention Trigger outputs, you can gain greater insight into your accounts.  Premier AttributesSM is Experian's core set of 2,100-plus attributes. These can quickly summarize data from consumers' credit reports, allowing you to more easily segment accounts to make more strategic decisions across your portfolio.  Trended 3DTM attributes can help you spot and understand patterns in a customer's behavior over time. Integrating trended attributes into a triggers program can help you identify risk and determine the next best action. Trended 3D includes more than 2,000 attributes and provides insights into industries such as bankcard, mortgage, student loans, personal loans, collections and much more.  By working with both triggers and attributes, you'll proactively review an account, so you can then take the next best action to improve your portfolio's profits. Customize your trigger strategy When you partner with Experian, you can bundle and choose from hundreds of Risk and Retention Triggers to focus on risk, customer retention or both. Additionally, you can work with Experian’s experts to customize your trigger strategy to minimize costs and filter out repetitive or unneeded triggers: Use cool-off periods Set triggering thresholds Choose which triggers to monitor Establish hierarchies for which triggers to prioritize Create different strategies for segments of your portfolio Learn more about Risk and Retention Triggers. Learn more *Disclaimer: “Alternative Financial Credit Data” refers to the use of alternative data and its appropriate use in consumer credit lending decisions, as regulated by the Fair Credit Reporting Act. Hence, the term “Expanded FCRA-Regulated Data” may also apply in this instance, and both can be used interchangeably.