It’s not just for fintechs and credit bureaus.

Amazon has partnered with the fintech Slope to offer AI-underwritten financing to Amazon sellers and reduce friction in the lending process. Eligible US Amazon merchants will be able to apply for and access loans through their seller accounts. Amazon could position itself as the go-to platform for higher-volume sellers as well as a more sophisticated alternative to financial institutions—and compete aggressively based on accuracy of underwriting and the time between applications and loan funding. It is the wise move for banks to move into embedded lending for ecommerce rather than try to sell loans to these merchants directly.

The share of rental applicants who are more than 90 days delinquent on student loans increased from 15% in January 2025 to 32% in May, according to a just-released TransUnion report. Credit score data reflects these delinquencies, with lower-scoring consumers faring the worst. Consumers’ struggles with student loan repayments highlight a problem for financial institutions (FIs) on the hook for private-loan defaults. And as consumers delay expensive financial decisions like buying a house in favor of reducing student loan debt, demand for credit like mortgages and auto loans will suffer.

FICO has partnered with Plaid to incorporate cash flow data from consumers’ checking, savings, and money-market accounts into its UltraFICO Score. The updated scoring model is designed to give lenders a more comprehensive view of a customer’s creditworthiness than legacy credit files indicate. Consumers who have credit products can access more, but those who don’t are less likely to be approved. Yet in a short time, scoring has evolved to better reflect consumers’ everyday financial behaviors and their willingness and ability to pay. This should get more credit products into more consumers’ hands.

US consumers’ rejection rates for new lines of credit hit a series high of 24.8%, up from 23.1% in June, while application rates remained stable (excluding credit card limit applications, which increased), per the Federal Reserve Bank of New York’s SCE Credit Access Survey. As issuers tighten the purse strings for working-class consumers, buy now, pay later (BNPL) have an opportunity to steal market share. Integrating their buy buttons at point-of-sale (POS) and marketing their BNPL debt cards can help reach these consumers where they shop.

The news: The average VantageScore credit score dropped one point since last month, meaning the average customer’s creditworthiness is declining. And there are other signs of credit stress that should be alarming to banks. Our take: With the average credit score dropping and delinquencies rising across all tiers—including among historically reliable superprime borrowers—financial institutions (FIs) are facing a higher-risk environment. This requires a proactive approach to risk management. FIs should tighten their underwriting standards—particularly for mortgages and auto loans, which are showing the largest increases in late payments. In addition, FIs must proactively engage with customers to help prevent delinquencies from turning into defaults. By using data to identify at-risk borrowers and reinforce customer loyalty, FIs can reach out with support and resources like loan modifications or personalized financial guidance.

As card demand contracts and consumers pay down debt, banks may be sidelining spend-ready customers before stagflation takes hold.

The news: Capital One, after acquiring Discover, plans to significantly expand its card businesses using Discover's network. This allows the bank to boost profitability and enhance offerings. CEO Richard Fairbank emphasized new services, including attractive rewards for debit cards and compelling credit card deals, funded by increased interchange revenues. Our take: Capital One's Discover acquisition maximizes its expanded infrastructure. Owning a payment network allows Capital One to capture more interchange revenue, reinvesting it into more competitive debit and credit card products. This approach will appeal to consumers facing financial uncertainty, promising better rates and rewards, strengthening Capital One's market position and ability to attract/retain customers.

In today’s episode, we talk about how much debt consumers have, which buckets it lives in, and the likelihood of a ‘debt jubilee’. Join the discussion with host and Head of Business Development Rob Rubin, Senior Analyst Grace Broadbent and Senior Director of Forecasting Oscar Orozco.

The personalized rewards offering will help the credit card stand out against other no-annual-fee credit cards

So far, neither network has seen signs of a consumer spending slowdown despite plummeting consumer sentiment

Consumers became more cautious with their spending, a trend that could worsen with Trump’s reciprocal tariffs

Many may turn to BNPL to make these purchases, providing a growth opportunity for providers

Exclusive events—even when cardholders have to pay to access them—have helped the brand make big gains with Gen Z and millennials.

Delinquency fears hit the highest since 2020. We look at how issuers can tailor their offerings for a new era of uncertainty.

Investing in card-linked installment offerings can help credit unions and community banks compete with larger issuers

Higher prices could impede volume growth and raise credit card issuers’ delinquencies

The tie-up also makes Marqeta a more attractive card partner for fintechs