Experian launches AI platform with real-time underwriting

Experian has launched Experian Activate, an AI-enabled decisioning platform for its consumer marketplace. The product brings real-time underwriting criteria into a comparison service used by more than 90 million members.

The system operates within Experian Marketplace, which compares credit cards, personal loans and motor insurance. It uses credit data, consumer-permissioned financial information and lender-defined criteria to match borrowers with offers they are more likely to qualify for.

Unlike marketplace models that rely on pre-screened lists or periodically refreshed data, the platform assesses consumers while they are actively shopping for credit. This allows lenders to apply their own underwriting rules in real time and gives consumers offers based on more current information.

The same real-time credit intelligence also extends to third-party experiences, including ChatGPT, allowing lenders to reach borrowers through other digital channels where consumers search for financial products.

Cash flow data

A central part of the launch is adding cash flow insights to the marketplace. Participating lenders can use consumer-permissioned bank account data alongside traditional credit information to build a broader picture of a borrower's finances.

Consumers can connect their bank accounts through a single link, allowing Experian to analyse income and spending patterns during the same session. The connected account data can also be used with Experian Boost, a service that adds eligible bill payment history to a consumer's Experian credit file.

According to Experian, this approach could help lenders identify applicants conventional credit scoring alone might overlook. It may also let lenders offer different terms to borrowers whose recent income or banking activity provides a fuller picture of affordability.

The launch comes amid broader concerns about financial inclusion in consumer lending. Experian cited research showing that 60% of consumers previously denied credit or offered worse loan terms than expected believed the outcome would have been different if lenders had considered recent income and banking activity alongside credit history.

That finding points to a gap between traditional credit assessments and more current indicators of a consumer's financial position. Experian aims to address that gap by bringing cash flow data into the decisioning process at the point consumers compare products.

"Experian Activate brings together the full power of Experian's data, analytics, marketplace reach and AI capabilities to create a more intelligent lending experience," said Rakesh Patel, Executive Vice President, Experian Marketplace at Experian. "We're uniquely positioned to help lenders make better decisions with greater confidence while helping consumers discover financial opportunities that are more personalized and relevant to their needs. It's another example of how Experian is using AI and innovating to create better outcomes across the financial ecosystem."

Marketplace role

Experian Marketplace is one of the company's consumer-facing financial services products, alongside its credit reporting and score-related tools. The launch of Activate expands its role from comparison shopping to in-session decisioning based on lender rules and user-permissioned data.

For lenders, that could reduce the number of consumers shown offers they do not qualify for. For users, the aim is to narrow the gap between browsing products and being approved for them.

The model also reflects a broader shift in consumer finance toward alternative data and more tailored underwriting. Banks and lenders have been testing ways to use transaction data, income signals and spending patterns to supplement credit bureau files, particularly for borrowers with limited credit histories or uneven scores.

Experian's proprietary analytics are built into the product alongside lender-specific criteria. This means lenders can choose how much to rely on cash flow indicators as part of their risk assessment and offer selection.

Ashley Knight, Senior Vice President of Product Management, Financial Services and Data at Experian, said the addition of cash flow data is intended to broaden access and refine lending decisions.

"Cash flow data is transforming how we understand consumer behavior, assess risk and open doors for consumers who have been historically left out of the mainstream financial ecosystem," said Knight. "By bringing consumer permissioned cash flow insights directly into the Experian Marketplace experience, we're helping lenders extend more competitive offers to more consumers while creating a more seamless experience for people shopping for financial products that best meet their needs."

Experian, a FTSE 100 data and technology company, employs about 25,200 people across 33 countries.