Business Insider Intelligence
Experian Boost factors in a broader range of transactional data into credit scores than does traditional credit scoring, including money earned and spent, council tax payments, savings and investments, and subscription payments to services like Netflix, Spotify, and Amazon Prime. The UK launch follows the 2019 rollout of Experian Boost in the US, which has seen nearly 5 million sign-ups in its first 18 months.
This service will improve UK consumers' access to credit—but it could also dull alt lenders' competitive edge if incumbent banks start regularly incorporating alternative data into credit assessments. Incumbents have struggled to gauge borrowers' true creditworthiness given their reliance on backward-looking data, and incorporating dynamic alternative data could open them up to a wider audience.