Tag: Digital Transformation

Over the past decade, advances in data availability, modelling techniques and machine learning have materially improved predictive performance across retail banking. Credit risk is more finely segmented, fraud detection more adaptive, and customer insight more granular. At the same time, expectations of analytics are changing. Chartis Research, in its inaugural Retail Banking Analytics50, evaluates providers based on how they help financial institutions use analytics to inform strategy, modelling and go-to-market decisions. Experian was recognised as one of the top vendors in the Retail Banking Analytics 50, receiving awards for Best Overall Strategy, Retail Analytics as a Service, and its Retail Analytics Governance Framework. This reflects a broader shift in emphasis – from model performance in isolation to how analytics is applied across the business. From analytical capability to decisioning systems Most financial institutions now operate with a substantial portfolio of models across acquisition, underwriting, fraud and customer management. Many of these models perform well in isolation. The challenge is how they are applied in practice. In many organisations, analytics still sits across fragmented environments, with separate data layers, different deployment approaches and limited feedback between decisions and outcomes. This does not prevent progress, but it does make it harder to achieve consistency at scale. What is emerging instead is a more integrated approach, where analytics is treated as a continuous system across the lifecycle. In its summary, Chartis notes, "Financial institutions are increasingly prioritizing platforms that are straightforward to implement and offer tightly integrated capabilities across the value chain.” Strategy: aligning analytics to outcomes Aligning analytics to business outcomes remains one of the more complex aspects to execute. Different functions optimise for different objectives. Data definitions are not always consistent. Decision strategies evolve independently over time. Even where underlying models are strong, this can lead to divergence in how decisions are made. Addressing this depends on shared data foundations, reusable features and clearer feedback loops between decisions and outcomes. In practice, achieving this level of alignment remains a work in progress for many organisations. Delivery: enabling scalable execution Cloud-based, API-enabled environments are making it easier to deploy models, update them more frequently and embed decisioning into operational workflows. They also allow multiple models to be applied within a single decision process. However, adoption remains uneven. Many financial institutions continue to operate hybrid environments, where newer capabilities sit alongside legacy infrastructure. This can introduce friction, particularly when scaling changes across multiple decision points. Chartis highlights "financial institutions increasingly are adopting a modular approach to retail analytics, seeking best-in-class external solutions rather than relying solely on legacy systems.” This changes how analytics is consumed, but also increases the importance of how it is integrated into decisioning processes. Governance: supporting scale and confidence As analytics becomes more embedded in decisioning, governance is becoming more operational. Expectations around data quality, model explainability and regulatory compliance continue to increase. At the same time, governance approaches are evolving, moving from periodic validation towards more continuous monitoring and control. The challenge is how governance is implemented. When embedded into development and deployment workflows, it can support scale and consistency. When applied retrospectively, it often introduces delay. Chartis states, “solutions that strengthen governance across data, model risk, controls and compliance also streamline regulatory alignment, reducing the operational burden.” For many institutions, embedding this consistently across the lifecycle remains an area of ongoing development. A more realistic benchmark for analytics success Improvements in model performance increase the need for consistent deployment. Faster deployment introduces new governance requirements. Greater alignment depends on more standardised data and features. As a result, analytics success is increasingly defined at the system level. More broadly, this points to a shift towards evaluating how effectively analytics can be applied across the lifecycle, rather than how individual models perform in isolation. For most institutions, progress will be incremental rather than immediate. The next phase of value will come not from isolated advances in modelling, but from the ability to apply those advances consistently across the business, with the right balance of scalability, control and flexibility. Winner's Summary Chartis’ Retail Banking Analytics50 and the winner’s summary provide additional detail on the capabilities shaping retail banking analytics, including integration across the value chain, analytics as a service and governance.

Experian's new global report is now available on how businesses can enhance efficiency, insights, and growth through integration to transform the future of risk strategy. Download report In the ever-evolving financial landscape, the convergence of credit risk, fraud risk, and compliance is becoming a game-changer. Financial institutions (FIs) increasingly recognise the need to integrate these functions to enhance efficiency, gain deeper insights, and drive growth. The 2024 global report on the convergence of credit, fraud, and compliance sheds light on this critical transformation, emphasising how a unified strategy can revolutionise risk management. The report highlights the importance of convergence in shaping the future of financial services. We surveyed 750 leaders in credit risk, fraud risk and compliance in financial services organisations across the world. Inside the report: The need for convergence As technology advances, financial institutions (FIs) face the dual challenge of managing complex systems while simplifying consumer processes. The report reveals that organisations use an average of eight tools across credit, fraud, and compliance, with some using more than ten. This fragmentation leads to inefficiencies and increased risks.In addition, 79% of respondents want to work with fewer vendors to manage credit risk, fraud, and compliance, underscoring the need for streamlined operations. Independent evolution of functions and associated challenges Credit risk, fraud risk, and compliance functions have evolved independently, creating operational silos and technology management challenges. This separation has led to increased fraud and credit losses. The report highlights that only 9% of organisations prioritise these functions equally, with most focusing on fraud. However, 87% of respondents acknowledge the overlap between these areas and are working towards closer collaboration. Regulatory pressures and advanced fraud techniques New regulations in the US, UK, and EU are compelling FIs to reimburse consumers for losses due to scams, increasing the liability for both sending and receiving banks. Penalties for failing to implement effective Anti-Money Laundering (AML) solutions have also intensified. These regulatory demands and advanced fraud techniques necessitate a more integrated approach to risk management. Early stages of convergence While the market is beginning to recognise the benefits of convergence, many FIs are still in the early stages of this journey. The convergence speed varies, but mature organisations have already started or plan to start the process soon. The report shows that 91% of respondents believe that forward-looking companies will centralise these functions within the next three years. However, only 15% prefer a 'point solution', 36% prefer a single integrated solution, and 49% prefer modular integration. The role of technology Technology plays a crucial role in integrating functions and managing risk. Next-generation platforms are essential for adapting to market needs, delivering innovative products, and meeting regulatory requirements. The report emphasises the importance of data aggregation, which combines diverse data for deeper insights, and the integration of credit decisioning and fraud detection solutions to balance risk and growth goals simultaneously. Improving risk management through alignment Correctly identifying consumers, managing fraud risk, making informed credit decisions, and ensuring compliance share common ground. The report shows that 57% of respondents believe aligning credit risk, fraud, and compliance functions leads to better overall risk management. Businesses with more centralised practices report improved risk management effectiveness, operational efficiencies, and data integrity. Benefits of convergence The convergence of credit risk, fraud, and compliance offers numerous benefits, including: Improved risk management effectiveness: Better alignment leads to more effective risk management strategies. Operational efficiencies: Streamlined processes and reduced duplication of efforts enhance operational efficiency. Increased data integrity: Centralised data management ensures consistency and accuracy. Cost reduction: Consolidation of functions and technology reduces costs. Enhanced customer experience: A unified approach improves customer recognition and service across all channels. Read the report to find out how to prove value through integration. Download report

Experian’s 2024 Global Identity and Fraud Report provides a comprehensive view and analysis of consumer and business sentiment towards the latest fraud patterns and fraud mitigation strategies in financial services worldwide.

Why agile data integration is key to profitability and reduced time-to-market for lenders, and how businesses are looking to cloud, alternative data sources and self-serve to enable this opportunity.

Credit professionals from a range of banks, telcos and financial services businesses gathered in London’s Kings Place in June for one of the highlights of the Experian decisioning community: FutureForum. We take a look at the highlights.

New IDC MarketScape: Worldwide Enterprise Fraud Solutions 2024 Vendor assessment provides valuable resource as organizations face increased fraud.

As the lines between authentic and synthetic blur more than ever before, we explore four fraud trends likely to be influenced the most by GEN AI technology in 2024 and what businesses can do to prevent them.

Lenders are using automation across the credit lifecycle and intend to invest further in the next 12 months. We look at the use cases for automation and address the key challenges lenders face when automating decisions.

We take a look at five transformative use cases in lending, and organisational priorities for integrating Gen AI into customer lifecycle processes.

We asked lenders how much Gen AI plays a role in their credit customer lifecycle processes and what Gen AI adoption looks like for them

The growing expectation that businesses recognise and protect consumers online, and the challenges businesses must overcome to build digital consumer trust.

Consumers are more aware than ever before about what they perceive to be a secure digital experience, so what can businesses do to improve consumer trust