Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Experian introduces digital checking account and debit card to enhance credit scores

EditorHari G
Published 10/03/2023, 08:53 AM
Updated 10/03/2023, 08:53 AM
© Reuters.

Credit reporting company, Experian (OTC:EXPGF), has unveiled a digital checking account and debit card to assist its customers in improving their credit scores. The newly launched products incorporate the firm's open banking-enabled feature, Experian Boost, which integrates a variety of payments like subscription services into people's credit scores.

The debit card and checking account will facilitate customers' utilization of this credit-boosting feature, thereby enhancing their credit profiles. Jeff Softley, Experian group president of consumer services, emphasized the company's commitment to revolutionizing how credit and everyday finances intersect. He stated that this offering is the next logical step in using their technology to grant consumers greater credit-building power and financial control.

Experian, with a market cap of $29.62 billion and a P/E ratio of 38.24, introduced 'Experian Go' last year, a service that enables 'credit invisible' consumers with little or no credit history to establish an Experian credit file for the first time. Through both Boost and Go, Experian claims to have empowered millions of individuals who regularly pay bills to leverage their positive payment history to augment their credit profiles. This is in line with the InvestingPro Tip that highlights the company's high earnings quality, with free cash flow exceeding net income. For more insightful tips like this, consider checking out InvestingPro's product here.

More than 14 million customers have connected to Boost via their existing checking account or credit card since its inception in 2019. This has further reinforced the company's mission for 'financial power for all'. The average Fico Score 8 has seen a rise of 13 points among those who experienced an increase after connecting to Experian Boost.

The company's revenue growth, while impressive at 5.26% LTM2023.Q4, has been slowing down recently, another point noted by InvestingPro Tips. Despite this, Experian has been profitable over the last 12 months, with a Gross Profit of $2.626 billion and an Operating Income of $1.508 billion.

In addition to integrating with Boost, the new account will offer customers access to over 55,000 fee-free ATMs worldwide and the option to receive their paychecks up to two days early. This development comes as part of Experian's continuous efforts to provide innovative solutions for Americans to build their credit without accumulating debt. The company's commitment to its shareholders is also evident in its maintenance of dividend payments for 44 consecutive years, as noted by InvestingPro Tips.

With these new offerings and its strong financial performance, Experian continues to solidify its position in the market, even as it trades near its 52-week low.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.