Equifax Continues Leadership in Explainable AI, Benefiting Lenders and Consumers

Story highlights:

• In highly regulated financial environments, explainable AI is critical for transparent decision-making and safeguarding consumer interests.

• EFX.AI-powered innovations like the OneScore family of credit scoring models empower lenders and service providers to unlock new opportunities by expanding their view of consumers.

• While traditional credit reports remain a strong indicator of credit history, alternative data can help responsibly expand access to credit and support a more inclusive economy.

For businesses operating across highly regulated environments, the capacity to clearly explain AI-driven decisions is crucial. This is especially true in financial decisioning, which requires strict regulatory compliance to safeguard consumer interests.

Equifax led the way toward an industry standard for explainable AI, which is a unique set of processes and methods that allows humans to understand and trust the output and results from machine learning algorithms - step-by-step patterns or instructions designed to get a result. The company introduced the first machine learning credit scoring system with the ability to generate logical and actionable reason codes for the consumer over a decade ago with NeuroDecision® Technology.

Now, backed by a multi-year, ~$3 billion investment in the Equifax Cloud™, the company is continuing that legacy. By leveraging proprietary data and its EFX.AI technology, Equifax is delivering higher-performing scores, models, and products to help customers grow and open financial services opportunities for more consumers. So far in 2026, over 80% of new Equifax analytical products have leveraged EFX.AI - and with 470+ unique patents supporting its AI approach, the company continues to accelerate its leadership in explainable AI.

Expanding Responsible Credit Opportunities

Explainable AI helps deliver credit decisions that are transparent and easy to understand. By looking at everyday habits, like paying cell phone and utility bills on time, explainable AI technology helps banks and lenders extend credit to more applicants.

One example is OneScore, which shows how explainable AI can help lenders look beyond the traditional credit file without giving up transparency. OneScore leverages EFX.AI and alternative data alongside traditional consumer credit data to provide a more predictive and holistic view of a consumer's financial profile.

That combination helps lenders make more accurate decisions and unlock new opportunities by expanding their view of consumers, which is important as an estimated 76 million U.S. adults have no traditional credit file or have a thin credit file, meaning they have a traditional credit history of four accounts or fewer. While many of these consumers may lack traditional credit tradelines, they may have regularly met other debt obligations that can help to create a fuller financial picture, such as rental, utilities, and telecommunications.

While traditional credit reports remain a strong indicator of credit history and past financial reliability, alternative data can responsibly support a more inclusive economy.

Through Equifax solutions powered by explainable AI, lenders can continue to find hidden potential and deliver tailored financial solutions directly aligned with consumer needs.