Seventy percent of consumers say they are willing to share their banking information in exchange for better loan rates, financial tools, or personalized spending insights, according to a recently released report from Experian. That’s the clear signal coming from recent research highlighting growing consumer comfort with data sharing and rising expectations for more personalized financial services. But while consumers are ready, U.S. financial institutions have been slow to act. Banks in the UK, EU, Australia, and Canada are already moving quickly to embrace open banking. U.S. banks, by contrast, remain hampered by legacy systems, limited analytical expertise, and gaps in capturing consumer consent. The global open banking market is projected to grow from $29.6 billion in 2025 to more than $300 billion by 2035, making consumer-permissioned data less of a differentiator and more of an expectation.
Generational differences highlight where this shift is strongest. Eight in ten Millennials and three-quarters of Gen Z say they would share banking data if it improved their credit approval odds. Only 60% of Baby Boomers feel the same. For younger consumers with thinner credit files, permissioned cashflow insights, like recurring payments and direct deposits, could open doors to new credit opportunities. Transparency remains critical, as consumers are more likely to grant access when institutions clearly explain what data is being collected, how it is used, and what they receive in return.
The business case for lenders is significant. Incorporating cashflow insights can improve predictive performance by up to 25% compared to conventional credit data. It can also expand credit access, increasing approvals by as much as 30% without requiring changes to risk tolerance. This creates opportunities to better serve underserved groups, including young adults and immigrants with limited credit histories. Beyond credit inclusion, cashflow data helps financial institutions deepen customer relationships, identify cross-sell opportunities, and build stronger loyalty.
Despite the potential, adoption hurdles remain. Many U.S. banks still lack the infrastructure to securely collect consent, ingest transaction data, and convert it into actionable insights. Others face a “cold start” problem, where they lack historical transaction data to train and test new cashflow-based credit models. At the same time, Experian’s 2025 Identity & Fraud Report shows that consumers are both more willing to share data and more anxious about online risks. Identity theft and credit card fraud remain top concerns, with 68% of consumers citing identity theft as their biggest fear. This underscores the need for U.S. financial institutions to balance personalization with clear communication and robust fraud protections.
