2026 Predictions: Why Consumer Permissioned Data is the New Standard for Relevance

Looking back at 2025, we saw the groundwork being laid for a massive shift in how financial data is used. For this year, the focus isn’t just on having digital tools derived from data insights —it’s about driving relevance through data, particularly as it relates to credit and attracting younger consumers. Here are my five predictions for the credit and fintech landscape in 2026.

1. Zillennials Will Take Control of Their Data

Gen Z and Millennials (or “Zillennials”) are tired of the “chicken and egg” credit trap where you need credit to get credit. Roughly 46% of Gen Z and 57% of Millennials have been denied a loan in the past five years. They are no longer passive; they are actively seeking tools to build and improve their credit history, with 73% of subprime/near-prime Zillennials willing to open a new checking account if it reports their rent and utilities. They currently use fintech credit building tools on an almost 3:1 ratio versus using their bank or credit union, but 2/3rds of Zillennials have seen no or minimal improvements to their credit history as a result of using those tools.

In 2026, we will see these generations move away from traditional “debt-only” models of credit and embrace platforms that let them use their own payment history as a financial asset.

2. Consumer Permissioned Data (CPD) Is Becoming Mainstream

For decades, the credit system was “all stick and no carrot,” reporting only when someone fell behind. In 2026, Consumer Permissioned Data (CPD), where users link their accounts to prove creditworthiness through recurring payments, will become industry standard. This movement is being led by influential FI’s like Navy Federal Credit Union, proving that when the largest players “reimagine checking” to include data-driven credit building, the rest of the market follows.

We’ve already seen the proof of concept with services that allow consumers to provide recurring non debt payments like rent, utilities, and telecom bills to credit bureaus. As a result, millions of previously “scoreless” users establish a credit score for the first time, with many others seeing a significant increase in their credit score. In 2026, this won’t be a niche feature; it will be a core requirement for any leading bank or payment company.

3. The “Checking Account” Will be Renamed

Given that physical checks are going the way of the dodo, why do we still call them “checking accounts”? It’s time to rename deposit accounts for what they DO which is to enable people to pay their bills. In many ways, they are the center of a consumer’s financial life, and they can contribute to their financial wellness by helping consumers get credit for their monthly payment behavior. For example, over 100 million people have either a thin file, or no file, or poor credit. If we enabled their deposit accounts to report their recurring bill payments to the credit bureaus, they could build credit without incurring or needing to take out a credit card or loan . Of course, this is also the essence of our product Bloom+. But my point isn’t to hawk a product or feature, it’s to beg all of us to reimagine deposit accounts as opportunity creation accounts for credit underserved populations. And, in that vision, I see renaming the checking account for its greater role and leaning into something more to help consumers beyond providing a mechanism to pay their bills. It would not only bring millions of people into the mainstream credit ecosystem, it would also create new lending opportunities for financial institutions. They’ll have a front row seat as their customers and members see their credit build by reporting the recurring payments in their debit account. Think of it as a “financial wellness account”, enabling the cross-selling of loan products and building share of wallet for the financial provider.

4. Deposit Accounts Will Become Relevant Again

Community banks and credit unions have faced a massive deposit outflow, with over $3 trillion has been moved to high-yield savings and investment accounts since 2020. To reverse this trend, institutions must offer more than just competitive interest rates.

Integrating credit reporting into checking accounts represents a $110 billion deposit recapture opportunity. When consumers use an account for credit building, they don’t just open it; they engage with it. Data shows that users move 4.6 more bills to a credit-building account within a single quarter of enrollment, and that deposit inflows increase by 11% on average. This means that financial institutions can pull off a rare “double double”…

5. Doing Good for Consumers While Doing Well for Financial institutions

The most successful firms in 2026 will realize that financial wellness is a powerful growth strategy, not a charity project. By helping consumers report recurring payments, institutions can help them see a credit score increase of 20-25 points within just 24 hours.

This “doing good” translates directly to “doing well” for the institution:

• Increased Deposits: Our Bloom+ clients are seeing an 11% increase in deposit inflow within a quarter of enrollment.
• Higher Engagement: Credit building is the most attractive checking feature, outranking rewards for investing or bundled subscriptions.
• Lifetime Value: Improved credit history makes it more likely for consumers to qualify for future loans, creating a sustainable lending pipeline.
• CRA and LMI impact: By improving the credit of thin, no file, and underbanked customers, financial institutions can improve the financial wellness in their communities.

Bonus Prediction: Turning “No” into a Path for “Yes” for Lending to Zillennials

Historically, a loan denial meant the end of a member or customer relationship. For many financial institutions, it’s the number one reason consumers defect. In 2026, the leading institutions will use CPD to transform these denials into “credit coaching” opportunities.

Among Zillennials turned down for a loan, 70% said they would have used a free credit-building service if the institution had offered it at the time of denial. By providing a path to “Yes,” banks, credit unions, and fintech companies can retain these customers and eventually convert them into profitable borrowers as their scores improve.

Thank you for spending a few moments with me and my predictions for 2026. As the year progresses, we’re going to test each of these ideas. First up, we envision a webinar and series inviting you all to help us rename and reimagine the checking account. Visit us at bloomcredit.com to learn more. Happy New Year!