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

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.

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