Credit & Risk
Today’s changing economy is directly impacting consumers’ financial behaviors, with some individuals doing well and some showing signs of payment stress. And while these trends may pose challenges to financial institutions, such as how to expand their customer base without taking on additional risk, the right credit attributes can help them drive smarter and more profitable lending decisions. With Experian’s industry-leading credit attributes, organizations can develop precise and explainable acquisition models and strategies. As a result, they can: Expand into new segments: By gaining deeper insights into consumer trends and behaviors, organizations can better assess an individual’s creditworthiness and approve populations who might have been overlooked due to limited or no credit history. Improve the customer experience: Having a wider view of consumer credit behavior and patterns allows organizations to apply the best treatment at the right time based on each consumer’s specific needs. Save time and resources: With an ongoing managed set of base attributes, organizations don’t have to invest significant resources to develop the attributes themselves. Additionally, existing attributes are regularly updated and new attributes are added to keep pace with industry and regulatory changes. Case study: Enhance decision-making and segmentation strategies A large retail credit card issuer was looking to grow their portfolio by identifying and engaging more consumers who met their credit criteria. To do this, they needed to replace their existing custom acquisition model with one that provided a granular view of consumer behavior. By partnering with Experian, the company was able to implement an advanced custom acquisition model powered by our proprietary Trended 3DTM and Premier AttributesSM. Trended 3D analyzes consumers’ behavior patterns over time, while Premier Attributes aggregates and summarizes findings from credit report data, enabling the company to make faster and more strategic lending decisions. Validations of the new model showed up to 10 percent improvement in performance across all segments, helping the company design more effective segmentation strategies, lower their risk exposure and approve more accounts. To learn how Experian can help your organization make the best data-driven decisions, read the full case study or visit us. Download case study Visit us
Today's lenders are using traditional and alternative credit data, including consumer permissioned data, to enhance their credit decisioning.
Credit unions are working toward financial inclusion, but it's a process that requires establishing best practices, partnerships and engaging leadership.
With the pandemic waning, now is the time for financial institutions to take action on financial inclusion. Read on to learn more!
Learn four best practices for improving consumer engagement while furthering your financial inclusion efforts. Read more!
Discover the dos and don’ts when it comes to implementing a successful strategy for income and employment verification for mortgage. Read more!
These days, the call for financial inclusion is being answered by a disruptive force of new financial products and services. Read more!
According to Experian’s State of the Automotive Finance Market Report: Q1 2022, credit unions had their highest total share in five years
Learn how you can use credit attributes to identify qualified prospects, set initial limits, manage credit lines and limit credit losses.
Many financial institutions have made inclusion a strategic priority to expand their reach and help more U.S. consumers access affordable financial services. To drive deeper understanding, Experian commissioned Forrester to do new research to identify key focal points for firms and how they are moving the needle. The study found that more than two-thirds of institutions had a strategy created and implemented while one-quarter reported they are already up and running with their inclusion plans.1 Tapping into the underserved The research examines the importance of engaging new audiences such as those that are new to credit, lower-income, thin file, unbanked and underbanked as well as small businesses. To tap into these areas, the study outlines the need to develop new products and services, adopt willingness to change policies and processes, and use more data to drive better decisions and reach.2 Expanded data for improved risk decisioning The research underlines the use of alternative data and emerging technologies to expand reach to new audiences and assist many who have been underserved. In fact, sixty-two percent of financial institutions surveyed reported they currently use or are planning to use expanded data to improve risk profiling and credit decisions, with focus on: Banking data Cash flow data Employment verification data Asset, investments, and wealth management data Alternative financial services data Telcom and utility data3 Join us to learn more at our free webinar “Reaching New Heights Together with Financial Inclusion” where detailed research and related tools will be shared featuring Forrester’s principal analyst on Tuesday, May 24 from 10 – 11 a.m. PT. Register here for more information. Find more financial inclusion resources at www.experian.com/inclusionforward. Register for webinar Visit us 1 Based on Forrester research 2 Ibid. 3 Ibid.
What goals should you set to make financial inclusion a reality? How can success be quantified? This checklist can help you become more inclusive.
“Disruption has caused enormous amounts of innovation,” said Jennifer Schulz, CEO of Experian, North America. “We must continue to be the disruptors in our industry which takes effort, data, technology, bright minds and vision for what the future will be.” Schulz kicked off the 39th Vision conference with a future-focused keynote delivered to a crowd of more than 400 attendees. Alex Lintner, Group President, Experian Consumer Information Services, talked about the next phase of great, highlighting the digital transformation that has taken place in the generations of the past and the disruption and innovation happening today and in the future. Keynote speaker: Dr. Mohamed A. El-Erian Dr. Mohamed A. El-Erian, renowned economist and author, President of Queens’ College, Cambridge, Chief Economic Advisor at Allianz, Chair of President Obama’s Global Development Council and Former CEO and Co-Chief Investment Officer of PIMCO, spoke about the Fed, inflation, negative interest rates and the labor market, as well as the importance of inclusion. El-Erian, who said he reads the Financial Times religiously, acknowledged that we will make mistakes on the journey as we work to be even more inclusive. To navigate what’s ahead, he said we will need resilience, optionality and agility. “It’s important to connect with information, acknowledge the insecurity, in a language people understand, in order to connect,” he said. Session highlights – day 1 The conference hall was buzzing with conversations, discussions and thought leadership. Buy Now Pay Later A large audience was in attendance for a session that introduced Experian’s Buy Now Pay Later Bureau™ and explored how it’s the first and only solution of its kind — serving consumers, BNPL providers, financial institutions and regulators. Identity Identity is constantly evolving, and while biometrics and authentication may have become ubiquitous, there is much activity around the concepts of eIDs, identity wallets and identity networks. Experian is making identities personal and helping businesses to recognize, manage and connect customer identities in new ways using data, analytics and technology. Marketing In today’s hypercompetitive world, businesses need to engage the freshest data and increase velocity when it comes to time to market. An average of 120 days won’t cut it. Ascend Marketing speeds time to market and helps achieve higher ROI. Regulatory Landscape With so much happening at Capitol Hill, a panel of experts from DC discussed a number of topics and proposals (and their impacts), including the defense for risk-based pricing, the impact of suppressing negative data, and trending topics like Buy Now Pay Later and data portability. All the while, the tech showcase had a constant flow of attendees with demos ranging from data and decisioning to financial inclusion and technology. This is just the beginning. And as Schulz said, “There’s more to do.” More insights from Vision to come. Follow @ExperianVision to see more of the action.
Learn how expanded FCRA-regulated data can be used to gain a more powerful and complete view of consumers' financial situations. Read more.
Experian’s Ascend Intelligence Service platform has been named “Best Consumer Lending Product” in the sixth annual FinTech Breakthrough Awards.
In today’s evolving and competitive market, the stakes are high to deliver both quantity and quality. That is, to deliver growth goals while increasing customer satisfaction. OneAZ Credit Union is the second largest credit union in Arizona, serving over 157,000 members across 21 branches. Wanting to fund more loans faster and offer a better member experience through their existing loan origination system (LOS), OneAZ looked to improve their decisioning system and long-standing underwriting criteria. They partnered with Experian to create an automated underwriting strategy to meet their aggressive approval rate and loss rate goals. By implementing an integrated decisioning system, OneAZ had flexible access to data credit attributes and scores, resulting in increased automation through their existing LOS – meaning they didn’t have to completely overhaul their decisioning systems. Additionally, they leveraged software that enabled champion/challenger strategies and the flexibility to manage their decision criteria. Within one month of implementation, OneAZ saw a 26% increase in loan funding rates and a 25% decrease in manual reviews. They can now pivot quickly to respond to continuously evolving conditions. “The speed at which we can return a decision and our better understanding of future performance has really propelled us in being able to better serve our members,” said John Schooner, VP Credit Risk Management at OneAZ. Read our case study for more insight on how automation and Experian Decisioning can move the needle for your organization, including: Streamlined strategy development and execution to minimize costly customizations and coding Comprehensive data assets across multiple sources to ensure ID verification and a holistic view of your prospect Proactive monitoring and real-time visibility to challenge and rapidly adjust strategies as needed Download the full case study