The number of regulations imposed on financial institutions has grown significantly over the past five years, and the level of complexity behind each regulation is high, requiring in-depth knowledge to implement and comply. Lenders have to understand the full complexity of both national and international regulations, so they can find the unique balance to meet compliance obligations while identifying profitable business opportunities.
With the rollout of EMV, the credit card industry expected a significant shift in the distribution of the types of fraud perpetrated using payment cards. Since the EMV chip thwarts the replication of the magnetic stripe, criminals are actively probing the credit card industry for new vulnerabilities and resultant opportunities.
Justifying financial investment for compliance and fraud prevention technology is challenging. In addition to understanding the numerous and complex compliance agendas, one also must equate the value of business enablement to the bottom line. Businesses are seeking cost-effective, flexible tools that will allow them to meet current and future guidelines, manage risk and ultimately authenticate as many good customers as possible — all while segmenting out only the real fraudsters and noncompliant identities.
Understanding the benefits of such a robust program that supports both risk mitigation and the customer experience is essential to building the business case for fraud prevention.
What key regulations have shaped the financial services industry over the past 8 years? From mortgage reform to combating fraud to model risk governance – regulators have certainly had a strong hand in evolving the financial services industry over the past eight years. This paper outlines some of the key initiatives drafted and executed during the Obama administration. It additionally sheds light on what could be on the horizon in 2017 and beyond.
If a new company has not yet established a credit history, many lenders turn to the business owner’s personal credit to evaluate risk. But does personal credit alone paint an accurate picture of a new business’s risk? Is there a more optimal way to determine how creditworthy a young company may be?
To find answers, Experian® randomly selected the credit files of 2.5 million U.S. small-business owners and compared them with the records of 1 million consumers. We then looked at the credit history of both groups, as well as key demographic data such as age, education and income. We also reviewed the number of open trades, delinquencies, bankruptcies and business survival rates. The results of this research are explained in this whitepaper.
Data furnishers are facing ever-increasing regulations when it comes to reporting consumer credit histories to the credit bureaus. Read our latest FAQ for answers to your top data reporting questions.
Identity relationship management is the next generation of identity management. Identity relationship
management isn’t just knowing who a person is (or is not) or may (or may not) be at a particular point in time.
Rather, it links people, places and things and enables a dynamic, context-based strategy that organizations
can apply confidently throughout the User or Customer Life Cycle.
While the mortgage meltdown tied to the Great Recession has passed, the peak of loans originating during that downturn continues to be monitored and assessed. Home equity lending was especially popular during the housing boom, and as the end-of-draw period trails, there is a great interest in consumer behaviors and repayment tied to these loans. This Experian analysis explores the spike in end of draw, as well as trends attached to originations and delinquencies.
Home equity lines of credit (HELOCs) continue to be a popular lending product. While much emphasis is placed on origination, it is critical for banks and credit unions to additionally manage this product throughout the consumer lifecycle. Access this one-page checklist to discover six best practices for lenders to consider as they manage and optimize their HELOC portfolios.
To promote transparency and aid in model governance, VantageScore Solutions publishes validations results annually, along with updated odds/performance charts. This paper highlights the most recent validation results and also presents insights gleaned from a decade of credit score model performance validations.
Learn new strategies and modern techniques to maximize auto loan growth. The busy auto sales season offers a prime opportunity for credit unions to grow auto share. Read the latest CU Insights article and hear from leading expert Scott Butterfield.
Email, while a tried-and-true marketing method, isn’t a complete marketing strategy. In this ultimate playbook, you’ll discover new ways to integrate mobile, social, display and TV advertising into your current email program.
Download the eBook now to learn:
Reject inference is the practice of using information to make a probabilistic guess as to the outcome of an application that was declined by a lender. In this paper, we walk through three approaches to iterative reclassification and provide an assessment of their efficacy based on classification accuracy.
Learn how Servicemembers Civil Relief Act (SCRA) protects servicemembers and the compliance solutions available to lenders.
Are you aware of the latest enhancements to the Military Lending Act? The Department of Defense passed a Final Rule in July 2015, and all lenders must get compliant by October 2016. Read our free paper on the actions you must take to get compliant and avoid costly fines.
As a group, minority-owned businesses receive far fewer commercial loans and have significantly fewer trade accounts than the general small-business population. At the same time, minority-owned businesses have average business credit scores that should qualify them as viable prospective borrowers. This whitepaper highlights key findings from a recent analysis of minority-owned business data. They include a review of the study, the major insights revealed, and suggestions for how a change in common business practices can deliver “win-win” outcomes for minority businesses and the lenders that extend them credit.
A VantageScore study analyzes consumer score migration. A key question for lenders using credit scores is: How will future events impact a consumer's credit score? This study analyzes consumer credit score migration over time, and how lenders can take these migrations into consideration in order to optimize their decisioning.
Don't get blind sided - Gain insight in establishing an identity management strategy that will adapt to new challenges, authenticating users, mitigating risk, adhering to regulatory constraints without impeding the user experience, and more.
Justifying financial investment for compliance and fraud prevention technology is challenging. Understanding the benefits of such a robust program that supports both risk mitigation and the customer experience is essential to building the business case for fraud prevention.
Data quality is critical to a company's success with consumers, regulators and financial advocacy groups. Ensuring the credibility of reported data ensures compliance and increases competitive advantage.
Many credit marketing leaders are actively evaluating and finding viable consumer populations within the near-prime consumer population today.
Download our latest white paper, Expanding the Marketable Universe, filled with valuable data and analysis that will help you identify strategies for acquiring new accounts in lower-scoring segments.
The Federal Communications Commission (FCC) recently provided additional clarity around the regulations you need to follow to stay compliant with the Telephone Consumer Protection Act (TCPA). Download our checklist to see how your business measures up and identify gaps in your right-party contact call strategy.
Calling your consumers - even once - means you must also adhere to the regulations established by the Telephone Consumer Protection Act (TCPA). Failure to follow the rules can result in per instance fines as high as $1,500. Our two-page paper outlines the details you must know about TCPA, as well as strategies to set up a compliance process and manage accounts.
Hardly a week goes by without the media reporting a large-scale hack of sensitive personal or account information. Increasingly, the public seems resigned to believe that such compromises are the new normal, producing a kind of breach fatigue that may be lowering the expectations consumers have for identity and online security. Still, businesses must continue to apply comprehensive, data-driven intelligence that helps thwart both breaches and the malicious use of breached information and protect all parties’ interests.
While most in the political arena believe Independents and Republicans share many of the same political views, small-business owners who identify as one of the two major political parties also share similarities outside of politics. Business owners who identify as Independents relate more closely to Republicans than to Democrats in a number of areas, including average personal income, education level and credit usage.
The similarities between Independent and Republican small-business owners are a few of the key findings included in a recent Experian analysis examining the characteristics of small-business owners based on political affiliation. In this whitepaper, we go in depth on these findings.
Experian research shows Millennials currently hold only 5% of their accounts with credit unions. Why? This paper explores Millennial trends in the financial services space, and advises how credit unions can adapt to serve this coming-of-age market,
Virtually unheard of just 10 years ago, Web-based companies that offer funding options beyond traditional bank loans have grown considerably. Small businesses — drawn by the easy application process and flexible repayment terms — have become increasingly comfortable working with online lenders, which offer rapid access to capital, a wide array of niche products and a low-friction customer experience. In this article we discuss emerging trends in online marketplace lending we can expect to see over the next several years.
When it comes to matching small-business borrowers to the most appropriate lenders, a new breed of marketplace matchmaker or loan aggregator is finding success bringing the two parties together. Aggregators compare the needs and qualifications of borrowers with lenders in their network matching their target criteria. Think of it as speed dating for business financing. This article explores the various go-to-market strategies and tactics employed by loan aggregators.
In this paper, we'll discuss who millennials are and dive deep into their most profitable segments. We will assess the drivers that affect their decision making and identify where millennials are in their financial journey. Lastly, we will provide best practices and look at innovative strategies banks have employed to reach this growing population.
When attempting to determine a small business's credit risk, which is more useful, the company's credit history or its owner's? For decades, conventional wisdom has held that a business owner's personal credit history alone can be used to judge his or her company's creditworthiness. Many lenders have tended to see small businesses and small-business owners as one and the same, their funds so frequently commingled as to make the two entities virtually indistinguishable. However, this strategy is not always successful. A business owner with good personal credit still can have a failing company, and someone whose personal credit is messy still can own a successful business. Since a bad call can cost a creditor thousands, perhaps tens of thousands, of dollars, Experian® decided to test the conventional wisdom for itself.
As an industry, marketplace lending has enjoyed considerable success over the past five years. In some entrepreneurial circles, names such as Lending Club, Fundera, Creditera and Funding Circle are as well-known as Citibank, Bank of America and Wells Fargo. Many full-service banks see these newer online platforms as opportunities to increase their own efficiencies as well as a way to capture future long-term customers. In this article we explore how financial institutions are aligning with online marketplace lenders.
The evolution of commercial lending over the past seven years has certainly had its share of ups and downs. Remember the ominous days leading up to the financial crisis when it seemed like everything was teetering on collapse? During that uncertain time, commercial lenders took a lot of criticism from several directions. On top of those worries, a new channel emerged, ¿online marketplace lending.¿ In this article, Charles H. Green from Advice On Loan shares his perspectives about how financial institutions can play to their strength, and play to win with online marketplace lenders.
Online lenders represent a valuable resource for small businesses in need of working capital. Also known as "alternative" lenders, they are particularly useful to new businesses lacking the long, detailed credit history that banks and traditional lenders usually require to underwrite a commercial loan. In this article we explore the various new data sources being used by online lenders to make lending decisions.
The Responsible Business Lending Coalition, a group of non-bank small-business lenders announced a self-regulatory program that is designed to bring greater clarity and consistency to its industry¿s pricing and consumer protections. In this paper we talk about self-regulation in the online marketplace lending sector and what the Small Business Borrower's Bill of Rights is all about.
Online marketplace lenders, have caused quite a stir over the past couple of years by offering alternative financing products to serve consumers and businesses. But what¿s so radically different about what they do, other than using a Website rather than a drive-up branch to initiate a financial relationship?
Over the past two to three years, online marketplace lending (OML) — also called alternative lending — has made dramatic changes in the landscape of small business lending. In this paper, the first in a series of eight articles, Experian experts discuss this exploding fin-tech-driven market from several angles.
Today's customers have an array of choices at their fingertips. They no longer accept the idea of "one size fits all." Gain their business and their loyalty by offering these highly informed consumers personalized products and services that focus on their individual needs.
Experian's Income Insight helps you give line increases to consumers who have the greatest ability to pay.
Today's consumer is well versed in understanding tools such as credit scoring and data reporting. Now more than ever, they are looking for a fair and accurate representation of their financial history. Data furnishers need to be at the forefront of understanding their reporting and management options. Learn how to improve the customer experience by being proactive and prepared with complete consumer data reporting.
Consumer expectations are changing rapidly, and there has never been a better time to create a more customer-centric organization. But companies need to do more than simply survey customers and develop new strategies. They need to take aggressive steps to develop an in-depth understanding of their customers, then develop and implement a comprehensive customer experience program.
Financial institutions have invested in Big Data for many years, and new advances in technology infrastructure have opened the door for leveraging data in ways that can make an even greater impact upon your business.
Big Data is not just about increased data and storage. It is about finding opportunity in your existing data sources and scaling for the future.
Consumers can often be excluded from building or establishing their credit based on traditional payment data history. As the credit industry continues to evolve, financial institutions seek methods to help their customers gain access into the financial mainstream. Learn more about how alternative payment data, such as positive energy-utility reporting can help your customers gain access to the financial services they need.
With increasing scrutiny on the financial services industry, the number of regulations continues to grow. This along with new regulators and ever-changing data, can prove to be challenging when operating in the collections industry. Learn more about what new regulators are focused on and how you can position yourself for operational efficiency to strengthen business practices while maintaining compliance.
As the playing field is stabilizing for the credit card industry, lenders are in a position now more than ever to grow their profits. Consumers are motivated to manage their cash flows, and improve their credit health; and they are transferring card balances, seeking the best rates. Learn how to attract the right audience, segment the surfers and deleveragers, and build customer loyalty.
Deepen relationships with your customers and enhance loyalty by anticipating their financial services needs. Discover the best ways to increase monetization in the mobile banking channel. And, learn how to target and connect with qualified customers and prospects, offering in-the-moment credit offers.
Fraud continues to grow and evolve, affecting consumers, businesses and agencies alike. As technologies evolve and information security tightens, the savvy nature of fraudsters becomes more sophisticated. Fraudsters are continually striving to be one step ahead of the next fraud-prevention strategy. As consumers move from face-to-face interaction to online and mobile transactions, there is a pressing need for more elaborate and accurate fraud prevention.
Mastering data quality are you ready for governance? Beyond data quality metrics, is your data credible? This is the next line of questioning that may come your way from regulators and other external parties charged with testing and sampling your data. We can help you stay ahead of potential upcoming regulations. To learn how we can help you take a proactive approach to data accuracy and dispute resolutions, complete the form to download our perspective paper.
Empowered consumers know that their credit health is more than just a score. Providing access to a consumer's credit score is a great first step. But an even greater opportunity for consumer engagement lies in the ability to provide access to the core factors affecting their credit. Help them learn what that score means with credible, detailed, rich educational content to help them make better financial decisions.
This white paper demonstrates that a different way of understanding consumer behavior is the key to creating the necessary strategies to create a profitable portfolio. It will show that considering only a current view of consumer credit does not provide the necessary and precise knowledge about how to market to or underwrite that consumer. You will discover that a "trended" view of the consumer will provide the information required to redefine static lending approaches and to create the breakthrough strategy that will deliver profit.
The US is the leading provider of affordable, fair, wider and more portable access to credit. But the American consumer has little appetite for mistakes when it comes to the accuracy of credit data. We believe that the next generation of lenders will compete on dispute response rates and accuracy of reporting. Download this complementary paper for a fresh perspective on how to take a proactive approach to: -Providing customers with an optimal experience -Correcting inaccurate data -Preparing for regulatory review -Understanding reporting practices as benchmarked to peers
The Rekindling Success white paper uncovers your portfolio's hidden potential using advanced triggers to prevent risk
This white paper evaluates how price optimization not only delivers improved profitability, but also provides the business with a better understanding of the overall business performance. For many organizations, the real benefits are gained through improved operational and financial management and the ability to respond to changing economic and competitive environments more dynamically.
Companies pursuing higher performance must find ways to simultaneously adapt to change. They have to work harder to rapidly pull insights about customer behavior and market trends from huge quantities of their own data as well as data from other sources. They work harder just to surmount process gaps and obstacles caused by traditional methods of developing and deploying decisioning strategies and tools. Incompatible software, different data formats, and lack of integration between strategy design and execution mean that too much time is being spent just on the mechanics of customer decisions.
As the economy gains strength, lenders are engaging in an increasingly fierce competition to entice the best candidates to their portfolios and to grow their lending business.
Lenders must look even more frequently and much more closely at their loan portfolio and “dig in” to consumers’ behavior to set short-term portfolio management strategies.
The economy’s recovery from the Great Recession may have started slowly, but it is accelerating – and it’s genuine. Economic indicators tell the story of improving business prospects. For credit issuers, the message is real, too. Now’s the time to look with fresh eyes at your post recession lending strategies. It’s time to rethink your approach to growth in this market and reassess the profile of the consumer prospect in relation to profitability and market share gains.
Credit marketing experts who evaluate the right data assets to supplement targeting efforts will emerge quickly over the next 18 months as leaders in portfolio growth. The key is getting the right product to the right consumer at the most appropriate time.