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Day 1, Vision 2016: Top 10 Takeaways

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It’s impossible to capture all of the insights and learnings of 36 breakout sessions and several keynote addresses in one post, but let’s summarize a few of the highlights from the first day of Vision 2016.

1. Who better to speak about the state of our country, specifically some of the threats we are facing than Leon Panetta, former Secretary of Defense and Director of the CIA. While we are at a critical crossroads in the United States, there is room for optimism and his hope that we can be an America in Renaissance.

2. Alex Lintner, Experian President of Consumer Information Services, conveyed how the consumer world has evolved, in large part due to technology:

  • 67 percent of consumers made purchases across multiple channels in the last six months.
  • More than 88M U.S. consumers use their smartphone to do some form of banking.
  • 68 percent of Millennials believe within five years the way we access money will be totally different.

3. Peter Renton of Lend Academy spoke on the future of Online Marketplace Lending, revealing:

  • Banks are recognizing that this industry provides them with a great opportunity and many are partnering with Online Marketplace Lenders to enter the space.
  • Millennials are not the largest consumers in this space today, but they will be in the future.
  • Sustained growth will be key for this industry. The largest platforms have everything they need in place to endure – even through an economic downturn.In other words, Online Marketplace Lenders are here to stay.

4. Tom King, Experian’s Chief Information Security Officer, addressed the crowds on how the world of information security is growing increasingly complex. There are 1.9 million records compromised every day, and sadly that number is expected to rise. What can businesses do?  “We need to make it easier to make the bad guys go somewhere else,” says King.

5. Look at how the housing market has changed from just a few years ago:

  • Inventory continues to be extraordinarily lean. Why? New home building continues to run at recession levels. And, 8.5 percent of homeowners are still underwater on their mortgage, preventing them from placing it on the market.
  • In the world of single-family home originations, 2016 projections show that there will be more purchases, less refinancing and less volume.
  • We may see further growth in HELOC’s. With a dwindling number of mortgages benefiting from refinancing, and with rising interest rates, a HELOC may potentially be the cheapest and easiest way to tap equity.

6. As organizations balance business needs with increasing fraud threats, the important thing to remember is that the customer experience will trump everything else. Top fraud threats in 2015 included:

  • Card Not Present (CNP)
  • First Party Fraud/Synthetic ID
  • Application Fraud
  • Mobile Payment/Deposit Fraud
  • Cross-Channel FraudSo what do the experts believe is essential to fraud prevention in the future? Big Data with smart analytics.

7. The need for Identity Relationship Management can be seen by the dichotomy of “99 percent of companies think having a clear picture of their customers is important for their business; yet only 24 percent actually think they achieve this ideal.” Connecting identities throughout the customer lifecycle is critical to bridging this gap.

8. New technologies continue to bring new challenges to fraud prevention. We’ve seen that post-EMV fraud is moving “upstream” as fraudsters:

  • Apply for new credit cards using stolen ID’s.
  • Provision stolen cards into mobile wallet.
  • Gain access to accounts to make purchases.Then, fraudsters are open to use these new cards everywhere.

9. Several speakers addressed the ever-changing regulatory environment.

  • The Telephone Consumer Protection Act (TCPA) litigation is up 30 percent since the last year.
  • Regulators are increasingly taking notice of Online Marketplace Lenders.
  • It’s critical to consider regulatory requirements when building risk models and implementing business policies.

10. Hispanics and Millennials are a force to be reckoned with, so pay attention:

  • Millennials will be 81 million strong by 2036, and Hispanics are projected to be 133 million strong by 2050.
  • Significant factors for home purchase likelihood for both groups include VantageScore, age, student debt, credit card debt, auto loans, income, marital status and housing prices.

More great insights from Vision coming your way tomorrow!