Issuers warn of legal fights, tighter credit, and shrinking perks for premium users.

It’s not just for fintechs and credit bureaus.

Equal credit access rules weren’t designed for modern underwriting technology.

We review the biggest credit card movements of the year including the Capital One Discover merger, Sapphire Reserve and Platinum card refreshes, and tightening underwriting standards that are squeezing out middle and lower class families from credit lines.

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.

Consumer loan volume and credit risk are getting harder to gauge as lending moves away from banks and into alternative consumer lending. One estimate says that private funding for consumer lending fintechs could support almost $140 billion in global lending over several years. FIs’ general disinterest in riskier borrowers means that they migrate to fintechs, which may retain the risk or shift it to banks and investors in ways that reveal little about borrowers on the hook for repayment. If the trend continues, widespread defaults could hit the financial system, and few will know exactly what to expect.

In 2026, personal lines insurers will face a market reshaped by changing demand, risk, and consumer expectations. Growth hinges on smarter digital engagement, genAI transformation, richer data, real-time risk insights, and emerging coverage areas.

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.

Plaid introduced a credit risk score based on real-time cash flow data as it dives further into credit scoring amid an industrywide push to monetize formerly unused or underused data sources. The fintech, a huge player in data aggregation, has diversified its business interests as aggregation has commoditized. Consumer-permissioned financial data shows promise as a new pipeline for consumer credit information. But the introduction of new forms of credit data doesn’t guarantee anything will change for consumers who struggle to access credit.

The finding: Interest in electric vehicles (EVs) has ticked up in the past year, per Deloitte’s June 2025 ConsumerSignals report. Globally, 44% of consumers said they would prefer an EV for their next vehicle, compared to 39% one year ago. In the US, 37% of consumers want an EV, up from 34% in June 2024. The rise in EV demand marks a fundamental shift in the risk landscape. Insurers can no longer afford to underwrite EVs as they would a regular car and adjust premiums reactively. Instead, they must move to a proactive model. This will include incentivizing safe driving, and educating consumers about their vehicles and how to keep premium prices as low as possible. Next, insurers should consider acquiring cybersecurity insurance, investing in human-centric security, and implementing advanced security technologies.

The news: New account openings were down 5% across Wells Fargo, Citi, Bank of America, and American Express during Q2 2025, per The Wall Street Journal. Our take: Issuers are going to chase opportunities to increase their payment volume, which explains targeted efforts to boost luxury travel and dining rewards. But looking long-term, banks need to think strategically about loosening their credit guidelines.

The news: The Federal Reserve Bank of Philadelphia recorded the first year-over-year decline in delinquency rates since the fourth quarter of 2021, per a report. Our take: As consumers’ financial situation recovers, banks need to plot out their next move.

The news: The P&C insurance industry posted a 96.6 combined ratio in 2024—its best in 10+ years—despite natural disaster losses. Major reserve boosts, surging premium growth, and smart underwriting (especially in personal auto and homeowners) drove this performance. GenAI adoption further enhanced claims processing and fraud detection. Strategic exits from high-risk areas also curbed losses. Our take: P&C insurers must double down on AI, automation, and risk analytics to sustain profitability amid growing climate volatility and economic headwinds. Innovation in underwriting and pricing, paired with disciplined risk management, will be key to staying resilient in an increasingly unpredictable risk environment.

Block demonstrates an alternative path forward to determining financial health but needs to expand beyond micro loans.

We explore two case studies from credit unions that turned to tech to improve efficiency.

To overcome account opening headwinds, credit card marketers can explore credit card subscriptions, net worth data collection, and wallet-first cardholder experiences.

Insurers’ profitability is under pressure, and waning penetration in homeowners and auto insurance policies isn’t helping. But renters insurance is a bright spot. Here’s a closer look at what our latest P&C insurance forecasts mean for insurers.

ChatGPT and generative AI have taken the business world by storm. But how valid is the buzz around the technology? And how should insurance leaders act on the opportunity in 2023?

IT and technology spending will register anemic mid-single-digit growth throughout our forecast period. Property and casualty tech leaders must maximize spending to support their organizations’ bottom line in a time of extraordinary pressures on profitability.