How trust, data and AI will define the next era of financial services

With nearly 16 million people using its consumer services in the UK, Experian has a unique view of financial behaviours, needs and emerging challenges. According to Edu, the landscape is changing fast, but what people want from financial brands remains consistent.

“Change is reshaping every part of the financial landscape, from digital transformation to economic conditions,” he explained. “But people still ultimately want financial brands that are fast, dependable and trustworthy.”

People are also looking for services that genuinely help them feel more confident with their money, and many are increasingly interested in how technology can help them make smarter day-to-day decisions.

One particular shift is the use of AI powered tools. Research cited by Experian shows almost half of consumers in the US now use generative AI for early financial guidance. Importantly, however, they still turn to recognised brands when it comes to making decisions.

“Consumers often go to those tools for generic answers first,” Edu shared. “But when they are ready to make an actual decision, we know people still want to use brands they trust and companies that have unique data about them to support those decisions.”

Data and AI are enabling true personalisation

These changing expectations are pushing the industry to rethink its approach and look at the convergence of data and advanced technology to better support customers.

Data gives financial services the ability to tailor products to what people actually need, but relevance matters more than volume. In today’s market, lenders can now draw on a much wider set of signals and alternative data sets.

“You used to have only traditional bureau data. Now you have bureau plus behavioural data and cashflow data,” Edu explained. “With that wider insight into someone’s financial behaviour, lenders can understand customer needs in ways that weren’t possible before and offer experiences that arrive at the right moment.”

“Personalisation is also evolving fast, with real time analytics now tailoring services based on each person’s behaviour as it happens,” added Edu.

The real step change, however, comes from combining high quality data with AI. Data provides the deeper understanding of consumers’ needs and challenges, and responsible AI turns that insight into faster, smarter and more inclusive outcomes.

Ultimately, what modern tools can do is read vast amounts of data in real time, learn what’s changing and respond instantly, which delivers personalised experiences at scale.

Technology is transforming debt consolidation

One area where Experian sees strong potential is debt consolidation.

Through its ReFi capability, consumers can combine multiple debts into a single loan with a potentially lower interest rate.

Historically, lenders struggled to assess affordability when borrowers intended to use a new loan to repay existing debt. ReFi solves this by paying off those balances directly, giving lenders greater clarity and simplifying the process for consumers.

“What we do is pay the accounts directly on behalf of the consumer. That guarantees those balances are settled and makes the risk assessment clearer for lenders,” Edu explained.

Experian estimates the potential scale of the opportunity is substantial. Internal analysis suggests around 40% of consumers searching for credit through Experian are looking for debt consolidation solutions. If widely adopted, the model could free up significant household spending power.

“We could be talking about introducing around £15bn back into the UK economy by allowing people to consolidate debt and pay less interest,” Edu confirmed.

Why financial education and partnership matter more than ever

Partnerships will always be essential to tackling financial vulnerability at scale. One example is Experian’s work with Fair4All Finance to accelerate adoption of debt consolidation models. The partnership includes funding to help lenders integrate the technology and launch new products, lowering the barriers to innovation and adoption.

“If the market supports debt consolidation effectively, it supports financial inclusion,” Edu said. “Consumers pay less interest, lenders see better repayment performance, and more people stay sustainably in the credit market.”

When it comes to financial education, despite rapid advances in data and automation, Experian believes it will remain essential.

“Because consumers now have access to so much data and guidance, financial education becomes even more critical. Without it, there’s a risk those tools are not used in the right way,” Edu notes.

Experian is expanding its efforts in this area, including new initiatives targeting university students.

A recently launched student ambassador programme at universities in Manchester trains students in financial literacy and Experian’s free consumer tools, allowing them to share guidance with peers in accessible ways.

The programme uses gamification and simple, jargon-free communication to engage younger audiences, a group that often faces major financial decisions for the first time.

The future: adaptive financial services

Looking ahead, more and more financial brands now see themselves as “financial copilots”, partners guiding people through everyday financial decisions. To live up to that role, adaptability will be key.

“Brands that will stay ahead will have one thing in common: adaptability,” Edu said. “That comes from real time understanding of customers, collaboration across the industry and shortening the gap from learning to doing by using AI, automation and modern tech stacks.”

In addition, AI-driven agents may eventually help consumers navigate financial decisions or even execute transactions on their behalf. But even in that scenario, trust will remain at the centre of the relationship between consumer and financial brands.

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