What’s on Lenders’ Minds in 2025? A Conversation with Equifax Advisors

Highlights:

• Lenders' primary concerns in 2025 include student loan repayment resumption, trade uncertainty, and auto lending dynamics.

• Equifax Advisors gather insights through one-on-one Market Pulse Advisory sessions, combining macroeconomic context, industry-specific impacts, and credit data trends.

• Key strategies for lenders in 2025 involve using data to address uncertainty, taking a holistic view of consumers, and engaging in scenario-based planning to adapt to evolving market conditions.

The lending environment in 2025 is shaped by shifting consumer behaviors, economic uncertainty, and industry-specific challenges. In the latest Market Pulse podcast episode, Equifax Advisors Maria Urtubey, Emmaline Aliff, Tom O'Neill, Jesse Hardin, and Dave Sojka share what they've heard directly from more than 100 customers conversations this year.

What are the biggest issues lenders are concerned about in 2025?

The Equifax Advisors agree that three topics dominate nearly every client conversation:

1. Student loan repayment resumption: Lenders want to understand how repayment status affects consumer credit scores and delinquency risks. After years of deferments, student loan impacts are finally appearing in portfolios, and some borrowers are experiencing score drops of 100+ points.

2. Trade uncertainty: Rising import costs and trade rule changes are creating uncertainty across industries. Lenders are asking: which sectors will be affected, how deeply, and how quickly? The uncertainty itself is often as disruptive as the increase in import costs.

3. Auto lending dynamics: Credit unions, banks, and captive lenders are all seeing changes in auto loan demand and competition. Auto lending has been "front-loaded" this year, with strong first-half performance, but lenders are now watching affordability and delinquency trends closely.

How are Equifax Advisors gathering these insights?

The advisory team hosts Market Pulse Advisory sessions, one-on-one or small group conversations with lenders across the U.S. These sessions combine:

• Macroeconomic context, including policy change and economic data

• Industry-specific impacts, including auto, mortgage, credit card, fintech

• Credit data trends, including consumer repayment, portfolio health, and score migration

Unlike broad webinars or roundtables, advisory sessions allow lenders to bring their own portfolios to the discussion, making insights more relevant and actionable.

How do concerns differ across industries like banks, credit unions, and fintechs?

Equifax Advisors note that responses vary by sector:

• Fintechs tend to be nimble, quickly adjusting underwriting policies or marketing strategies when new data emerges.

• Banks and credit unions often move more slowly due to committee approvals and regulatory considerations. Many adopt a "wait and see" approach, trending more conservative until more data is available.

• Credit unions specifically remain highly focused on auto lending, as it's a primary driver of new member growth.

This variation underscores the importance of tailoring advisory recommendations-not every strategy fits every institution.

What strategies are sticking with lenders in 2025?

Several recommendations have resonated strongly across clients:

1. Use data to address uncertainty: The best way to navigate unknowns is through consistent data monitoring. Historical patterns on inflation, delinquency, and consumer credit behavior provide guidance for future decisions.

2. Take a holistic view of the consumer: Beyond credit scores, lenders benefit from looking at household assets, income, and financial resilience. This broader view helps differentiate between borrowers who are struggling and those who can weather economic pressures.

3. Scenario-based planning: Rather than relying on static forecasts, lenders are modeling different "what-if" scenarios (e.g., changes in interest rates or repayment trends) to plan for multiple possible outcomes.

Which recommendations have been harder for clients to adopt?

Some ideas look strong in theory but prove difficult in execution:

• Creating "go teams:" Advisors recommend building nimble teams empowered to act quickly on new data. While fintechs can implement this, traditional banks and credit unions often struggle with bureaucracy and slow decision-making.

• Cross-business collaboration: Many financial institutions still operate in silos. For example, card issuers may not share data with deposit teams, missing opportunities to spot risks or opportunities holistically.

How are lenders shifting their strategies mid-year?

Early in 2025, many lenders adopted a "wait-and-see" stance due to policy uncertainty and volatile markets. Now, with more data in hand, they are beginning to adjust:

• Some are tightening credit policies, moving lending toward prime and super-prime segments.

• Others are adjusting marketing strategies to target more resilient consumer segments.

• A few are using data insights to spot growth opportunities in underserved markets, instead of pulling back completely.

This shift reflects a balance between managing risk and capturing opportunity.

What is the key takeaway for lenders in 2025?

The advisors agree on one central message: uncertainty creates both risks and opportunities. Institutions that continuously monitor data, engage in scenario planning, and adopt a holistic view of their customers are better equipped to adapt quickly.

As one advisor put it, "Preparation and opportunity may look like luck, but it's often the counterintuitive choices that transform chance into change."

Why are advisory sessions valuable for lenders?

Market Pulse Advisory sessions provide a two-way exchange. Advisors share top-down insights from macroeconomic trends and credit data, while clients share what they see in their own portfolios. This enriches the conversation and helps Equifax tailor guidance.

Advisory sessions ultimately:

• Cross-check relevance of national trends with local portfolio realities

• Surface blind spots that may not be visible in aggregate data

• Provide actionable steps lenders can take in real time

Final Thoughts

Lenders in 2025 face a complex environment shaped by student loan repayment, tariff volatility, auto lending shifts, and evolving consumer behavior. But with data-driven advisory insights, financial institutions can move beyond "wait-and-see" and position themselves for resilience and growth.

Interested in learning how personalized insights can drive your business forward? Sign up for a complimentary 60-minute Market Pulse Advisory session with one of our advisors.

For more insights, tune in to the full Market Pulse Podcast episode, where the Equifax Advisors share detailed examples and recommendations from their customer conversations. If you have questions or suggestions for future podcasts, please reach out to [email protected].