How Building Trust Can Help Avoid “Under-Data’ed” Consumers

Reading the term “under-data’ed” might make you think we are making up words — and to be fair, we are. But this term describes a very real scenario that could become a growing challenge in 2025 and beyond. 

We all know about the challenges faced by unbanked and underbanked households. Nearly 6 million households were considered unbanked in 2023 — meaning no one in the household had a checking or savings account with a bank or credit union. And, another 19 million households are underbanked, meaning they use nonbank products to meet their core financial needs. 

To better serve these underserved consumers, many financial providers are turning to alternative data to improve risk profiling and credit decisioning capabilities. This use of alternative data in credit decisioning brings us close to the goal of financial health and inclusion for all Americans. But what happens when some consumers are wary of sharing their data? 

That’s how we came to the term “under-data’ed.” Consumers who don’t share financial data — or don’t have data to share — have the potential to become a new class of underserved financial consumers. 

Consumers that are unwilling to share their data will be at a disadvantage as financial providers increasingly leverage data to personalize products and offers, improve customer service, and support financial wellness. 

The solution? It’s about building trust by creating relevant, personalized, and transparent experiences for consumers. 

• Relevant: 55% agree they would give their financial provider access to more of their data if they knew it would result in a better experience 
• Personalized: 58% agree they expect their financial provider to leverage the data they have about them to personalize their experience 
• Transparent: 80% agree it’s important for them to know and manage who has access to their financial data

By offering relevant, personalized, and transparent experiences to consumers, financial service providers can build trust that earns access to a consumer’s data and takes one step closer to making financial wellness a possibility for all Americans. 

To see the rest of MX’s predictions for 2025, check out the full whitepaper or watch the replay of our recent webinar.