Experian, the multinational data analytics and consumer credit reporting company headquartered in Dublin, Ireland, that collects and aggregates information from 235 million individual U.S. consumers and more than 25 million U.S. businesses, announced last week the launch of Experian Smart Money™ Digital Checking Account & Debit Card, a Mastercard branded debit card issued by CFSB (Community Federal Savings Bank). The debit card will complement Experian Boost®, their existing offering that aims to assist consumers in building and/or improving their credit score by providing unfiltered visibility into basic, monthly recurring utility payments (like energy, water, and telecom).
So, why would a corporation known for being the “credit police” want to enter the payments space with a branded debit card?
Well, it would be a blatant conflict of interest if the reason were to monetize the payments revenue. Perhaps Experian is genuinely sincere in its mandate to help people build and maintain good credit?
Doubtful. Though that strategy could flow indirectly to the firm’s bottom-line through good will and branding, it doesn’t play from a quarterly earnings perspective.
The answer?
It’s a marketplace strategy. Experian has already positioned itself as an online marketplace for third-party financial services companies – credit card issuers, insurance companies, and lenders – to sell their wares. The continued aggregation of proprietary payments and fintech products, whether build, buy, or partner) bolsters this one-stop shop for consumer financial services strategy, with direct bottom-line benefit from advertising revenue and/or affiliate rev-share, from the large, vertically adjacent financial services players who receive flow-through traffic from its website.
