Experian's Expansion of Rental Payment Reporting and Its Implications for Consumer Credit and Financial Inclusion

The financial services landscape is undergoing a transformative shift, driven by the integration of alternative data into credit assessment frameworks. At the forefront of this evolution is Experian, a global leader in credit reporting, which has pioneered the inclusion of rental payment histories in credit scoring. This initiative, part of a broader strategy to leverage non-traditional data sources, not only addresses systemic gaps in financial inclusion but also positions Experian as a key player in the rapidly expanding credit technology market. For investors, the implications are clear: Experian’s innovations in rental payment reporting and alternative data utilization represent a compelling opportunity to capitalize on the convergence of financial empowerment and technological advancement.

The Case for Rental Payment Reporting

Traditional credit scoring models have long excluded a significant portion of the population, particularly low-income renters and those with limited credit histories. According to a report by Experian, approximately 26 million U.S. consumers have thin or no credit files, limiting their access to affordable credit and exacerbating cycles of financial instability [2]. Experian’s expansion of rental payment reporting, in collaboration with the Credit Builders Alliance (CBA), seeks to rectify this by enabling landlords to report tenants’ payment histories to credit bureaus. This initiative, supported by the Rent Reporting Technical Assistance Center (RRTAC), reduces administrative barriers for affordable housing providers and empowers renters to build credit through consistent, on-time payments [2].

The impact is measurable. Data from Experian’s Experian Boost® service, which allows consumers to add qualifying rent, utility, and telecom payments to their credit files, reveals that users can see an average FICO® Score 8 improvement of up to 19 points when combined with other positive payment data [1]. For context, a 19-point increase can elevate a subprime borrower (score below 630) into the prime category (630–689), unlocking access to lower interest rates and better financial terms. This not only benefits individual consumers but also reduces systemic risk by fostering a more creditworthy population.

Market Trends and the Rise of Alternative Data

The broader credit technology market is poised for exponential growth, fueled by the adoption of alternative data. A 2025 market report indicates that the global credit bureaus market reached $123.34 billion in 2025 and is projected to grow at a compound annual rate of 11.4% through 2029, reaching $189.65 billion [3]. This growth is driven by lenders’ increasing reliance on non-traditional data sources—such as rental payments, utility bills, and digital transaction histories—to assess creditworthiness.

Experian’s strategic focus on alternative data aligns with this trend. In FY2025, the company reported 6% organic revenue growth in its Business-to-Business (B2B) segment, driven by analytics, mortgage services, and alternative data initiatives [1]. The company’s investment in AI-driven tools to process high-frequency, unstructured data further strengthens its competitive edge. For instance, Experian’s integration of RentBureau Consumer Profile into its Experian Connect API platform enables real-time sharing of rental and credit histories, streamlining tenant screening for landlords while expanding credit access for renters [1].

Competitive Positioning and Financial Metrics

Experian’s dominance in the U.S. credit reporting market—where it operates alongside Equifax and TransUnion—is underscored by its mature core business and aggressive expansion into adjacent markets. While exact U.S. market share figures remain undisclosed, the company’s FY2025 financial performance highlights its resilience and growth potential. Revenue from ongoing activities grew by 8% at constant currency, with Benchmark EBIT rising 11% to $2.1 billion [1]. These metrics reflect strong demand for Experian’s services, particularly in alternative data solutions, which are increasingly critical for lenders navigating tighter bank lending standards and rising interest rates.

Investor sentiment remains bullish. Institutional ownership of Experian’s shares stands at 84%, with major stakeholders like BlackRock and Vanguard increasing their stakes in recent years [1]. This confidence is rooted in Experian’s ability to adapt to regulatory shifts and technological disruptions while maintaining a consistent dividend yield of 1.8% [1].

Investment Implications

For investors, Experian’s initiatives in rental payment reporting and alternative data utilization present a dual opportunity: addressing a pressing social need while tapping into a high-growth market. The credit technology sector’s projected expansion—from $110 billion in 2024 to $189 billion by 2029—offers a fertile ground for companies that can innovate in data analytics and financial inclusion [3]. Experian’s first-mover advantage in rental reporting, coupled with its robust financials and strategic acquisitions (e.g., ClearSale for fraud detection), positions it to outperform peers in this evolving landscape.

However, risks persist. Rising interest rates and fiscal pressures could strain borrowers, particularly in real estate and private credit sectors [3]. Additionally, regulatory scrutiny of data privacy practices may impose operational constraints. Yet, Experian’s proactive approach to compliance and its emphasis on ethical data use mitigate these risks.

Conclusion

Experian’s expansion of rental payment reporting is more than a technical innovation—it is a catalyst for financial inclusion in an era where traditional credit systems have failed to serve millions. By harnessing alternative data and leveraging AI-driven tools, the company is redefining creditworthiness and democratizing access to capital. For investors, this represents a strategic inflection point: a chance to align with a market leader that is not only navigating macroeconomic headwinds but also shaping the future of credit technology. As the lines between financial services and data analytics blur, Experian’s ability to turn non-traditional data into actionable insights will remain a cornerstone of its long-term value creation.

**Source:[1] Experian plc (EXPGY) Valuation Measures & Financial Statistics, [https://finance.yahoo.com/quote/EXPGY/key-statistics/]; Full-year results FY25, [https://www.experianplc.com/newsroom/press-releases/2025/full-year-results-fy25][2] Low-income Tenants Can Get “Credit” for Paying their Rent, [https://www.experianplc.com/newsroom/press-releases/2021/low-income-tenants-can-get-credit-for-paying-their-rent][3] Global Credit Bureaus Market Report 2025, [https://www.thebusinessresearchcompany.com/report/credit-bureaus-global-market-report]