Prove, Experian, Team to Help Identify the Unbanked

Digital identity company Prove Identity has joined forces with Experian in a partnership designed to use identity verification tools to promote financial inclusion.

According to a Tuesday (Oct. 25) news release, the collaboration aims to help companies offer financial services to more customers, including underbanked people who may not have a credit file or lengthy data history.

“Traditionally, underbanked populations have had to default to ‘slow lane’ digital experiences. Prove and Experian’s new partnership will extend ‘fast lane’ digital experiences to more consumers,” per the release.

The partnership will see Prove integrate authentication tools such as Prove Pre-Fill and Prove Identity — designed to validate and onboard customers — into Experian CrossCore, the company’s digital identity and fraud risk mitigation platform.

The collaboration between the two companies arrives one day after Prove announced the launch of Prove Auth, a passwordless login and omnichannel authentication tool that lets companies rely less on passwords and one-time passcodes, letting customers authenticate across phones, desktops, and call centers.

It’s also happening amid a challenging economic era that’s caused a shifting credit landscape, Roy Ng, co-founder and CEO of Bond, wrote in the recent PYMNTS eBook, “What’s Your Plan? Payments Strategies for a Strong 2022 Finish.”

Read more: More Brands Will Offer Secured Credit Cards for Customers During Uncertain Economic Times

More than 150 million individuals in the U.S. are considered financially at risk, Ng said, citing data from Experian and U.S. Census data.

Close to a third of U.S. consumers have a subprime credit score (between 580 to 669), including 40% of millennials, who account for “the highest ratio of subprime consumers of any generation.” In addition, an estimated 49 million U.S. consumers are classified as either “credit invisible” or “unscorable.”

“Businesses and consumers face a tumultuous macroeconomic environment, skyrocketing inflation, and a looming recession,” he wrote. “As a result, there is an opportunity for the credit landscape to shift, and the offering and use of secured credit cards are the solutions that will help brands and consumers alike.”