📊 What the Data Is Telling Us:

How Economic Trends, Consumer Profiles & Fraud Are Shaping the Future of Lending

By Anna Fisher, VP of Alternative Finance, Equifax
Presented at the LendSuite Conference 2025 – Great Room Wed, Mar 12, 2025, 11:00 AM - 11:30 AM (EDT)

TL;DR: From economic pressure and savings depletion to shifting borrower behavior and rising fraud, Equifax shared deep insights on how alternative lenders can navigate today’s complex environment using real-time data and modern consumer profiling.

🏦 Economic Landscape: Strong Headlines, Subtle Warnings

While the broader economy continues to report strength—low unemployment and stabilized inflation—Equifax data tells a more nuanced story:

• 📉 Job openings are decreasing despite low unemployment

• 📈 Inflation is creeping back as of late 2024 into 2025

• 🍳 Basic goods like eggs are still costing more—real pain for real people

"Consumers are changing how they spend, save, and borrow—and that affects how lenders must respond."

📉 Originations Snapshot: Lending Is Shifting

Equifax shared year-over-year trends in originations:

💡 These figures represent matches made—qualified borrower + willing lender—not necessarily demand.

🚨 Fraud Is Evolving—Fast

Fraud isn’t just a consumer risk anymore. It’s a macroeconomic force, amplified by:

• AI & synthetic identities (auto fraud up 60% YOY)

• Mobile & digital banking vulnerabilities

• Account takeovers fueled by social engineering & better tech

"Are you confident you’re catching fraud at the beginning of your customer journey?"

🔀 The K-Shaped Economy in Action

Equifax’s economists reference a “K-Shaped Recovery,” where some consumers thrive, while others fall behind.

• Top half: employed, steady income, spending confidently

• Bottom half: savings depleted, living paycheck-to-paycheck, higher reliance on credit

💳 Spending vs. Income: A Tipping Point

Consumers are spending faster than their income is growing—especially visible in late 2024 into early 2025.
In October alone, Americans briefly reined in spending... then ramped right back up for the holidays.

And savings? Way down.

• 🏦 50-year savings average: ~7.5%

• 📉 2024 average: ~2–4%

• 📉 Comparable to 2008–2009 lows

“People are funding lifestyles with savings—and savings are running out.”

📉 Payment Trends: Red Flags in Credit Card Behavior

• Nearly 11% of U.S. consumers are now only making minimum payments on their credit cards—the highest in a decade.

• Indicates mounting financial stress, despite stable employment.

📌 Ask yourself: Where do you sit in your borrower’s payment hierarchy?

🧠 Do You Really Know Your Borrower?

• Is their income self-reported or verified?

• Has their job status changed?

• Are they using savings, income, or debt to pay you?

• Do you know where you fall in their bill priority list?

These details matter more now than ever.

📈 The Rise of the Alt-Finance Borrower

There’s growing demand among consumers who:

• Have prime or super prime credit

• Are unconventionally employed

• Prefer non-traditional financing products

🔎 Equifax data shows:

35% of consumers seeking alternative finance have a prime or super prime traditional score

These consumers could qualify for traditional loans—but they’re choosing alternatives.

👥 Meet the New Borrower

They may:

• Be gig workers, freelancers, or self-employed

• Rent instead of own

• Avoid credit cards

• Choose buy-now-pay-later or lease-to-own options

🧠 They’re not risky—they’re just different.

📊 Demand Trends: What Are Consumers Really Looking For?

💬 Final Takeaway: Meet Borrowers Where They Are

Economic pressure. Evolving fraud. Changing preferences.
You need data, tools, and insight to know:

• Who’s a real borrower

• What they need

• When to offer it

• How to help them stay afloat—or grow

“It’s about right offer, right person, right time—more than ever before.”

Want to explore Equifax’s alternative finance data or consumer insights platform?
📨 Reach out to their team or visit equifax.com.

Ready to Lend Smarter in 2025?
The data is clear—today’s borrowers are evolving, and so should your strategy. LendSuite gives you the tools, integrations, and real-time insights to make confident decisions, fight fraud, and meet modern borrowers where they are.

• Explore the LendSuite Ecosystem and future-proof your lending.

• Request a Demo today and see our powerful software in action.

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