Experian Boost

Our first step towards a focused HMW question and research objective was to understand the concept of “thin files” in the financial sector, where approximately 53 million Americans lack sufficient credit histories for traditional scoring models. Many individuals display financial responsibility through regular bill payments but are overlooked by conventional credit systems. By utilizing both primary and secondary data and insights from the research participants, we explored how leveraging alternative payment data can transform these overlooked behaviors into valid indicators of creditworthiness. By understanding the “thin files” and the system within it, we hope to start the research work in a manner that grounds us to the realities of the most affected, which we also realized were mainly young adults, immigrants, and lower-income individuals previously deemed invisible by standard methods.

The research utilized an ethnographic approach, conducting 1:1 structured and semi-structured interviews with 50 participants to explore the financial inclusion challenges among marginalized communities, young individuals, and middle-aged adults facing credit struggles. Each 30-to 60-minute interview revealed personal stories that highlighted key insights. The complementary quantitative analysis revealed over $50 billion in unacknowledged monthly utility payments, validating our findings. To refine the solutions further, we engaged 28 users in iterative usability testing, ensuring that our design was simple, transparent, and immediately beneficial while addressing emotional barriers and trust concerns in financial data sharing.

This research identified opportunities to bridge the gap between reliable bill payment data and creditworthiness indicators. Participants managed utility payments and financial commitments but received no acknowledgment of their financial behavior. Our research found that 90% of participants had a low rate of large purchases that build credit but a high rate of consistent utility and rent payments. Annually, over $50 billion in utility payments goes unacknowledged in the US, missing the chance to link these payments to credit reliability. Most participants maintain a “thin file” lacking large credit transactions, yet their bill payments reflect actual creditworthiness. Additionally, 35% of Americans’ monthly rent and utility payments, totaling over $50 billion annually, do not contribute to their credit scores. Many renters do not pay utilities directly, making rental payments an overlooked avenue for credit improvement.

These insights present design interventions in traditional credit scoring methods, particularly for those below the Fico 680 credit score-seeking credit score empowerment. We propose an application to empower users to link accounts and securely streamline rent and utility transaction history. This platform would facilitate a simplified onboarding process, allowing users to enhance their credit scores through demonstrated financial responsibility. The MVP was built based on three use cases that our design solution must have.

• Experience design must have the best practices for usability and accessibility in the financial regulatory fintech space to ensure individuals can quickly link financial data.
• The design must integrate Utility and Rent Data to capture payment histories and translate regular payment behavior into credit-boosting opportunities.
• Experience design augments security measures that ensure users’ data security and ease of use, paramount for fostering trust and encouraging adoption.

Our prototyping process emphasized three essential components: seamless and secure bank linking, clear visualization of potential credit score enhancements, and intuitive step-by-step guidance throughout the app experience. Testing with 28 users provided valuable feedback, leading to refinements in each interaction. Key insights revealed that 92% of users prioritized transparency in financial services, 88% favored mobile-first solutions, and 76% required clear value demonstrations before sharing data. Implementation involved a phased rollout, starting with essential utility connections and gradually adding more payment types as users became comfortable. This process navigated various regulatory requirements and federal laws related to financial data exchange, ensuring compliance with banking institutions’ protocols. We established a secure infrastructure to connect millions of bank accounts while safeguarding user data. Our strategy focused on building trust through progressive feature disclosure, beginning with core security integrations and real-time utility data verification while adhering to privacy standards. This approach resulted in high completion rates and positive user experiences, bridging the gap between utility payments and credit recognition.