Digital Technology

This week, Experian released a new version of our CrossCore® digital identity and fraud risk platform, adding new tools and functionality to help businesses quickly respond to today’s emerging fraud threats. The ability to confidently recognize your customers and safeguard their digital transactions is becoming an increasing challenge for businesses. Fraud threats are already rising across the globe as fraudsters take advantage of the global health crisis and rapidly shifting economic conditions. CrossCore combines risk-based authentication, identity proofing and fraud detection into a single cloud platform, which means businesses can more quickly respond to an ever-changing environment. And with flexible decisioning orchestration and advanced analytics, businesses can make real-time risk decisions throughout the customer lifecycle. “Now more than ever, businesses need to lean on capabilities and technology that will allow them to rapidly respond in these challenging times, increase identity confidence in every transaction, and provide a safe and convenient experience for customers,” said E.K. Koh, Experian’s Senior Vice President of Global Identity & Fraud Solutions in a recent press release. “This new CrossCore release enables businesses to easily leverage best-in-class, pre-integrated identity and fraud services through simple self-service.” This new version of CrossCore features a cloud architecture, modern user interface, progressive risk assessments, faster response times, self-service workflow configuration, and a transactional volume reporting dashboard. These enhancements give you a simpler way to manage how backing applications are utilized, allow you to analyze key performance indicators in near real-time, and empower you to catch more fraud faster - without impacting the customer experience. “Recent Aite Group research shows that many banks have seen digital channel usage increase 250% in the wake of the pandemic, so ensuring a seamless and safe customer experience is more important than ever,” said Julie Conroy, Research Director at Aite Group. “Platforms such as CrossCore that can enable businesses to nimbly respond to changing patterns of customer behavior as well as rapidly evolving attack tactics are more important than ever, as financial services firms work to balance fraud mitigation with the customer experience.” CrossCore is the first identity and fraud platform that enables you to connect, access, and orchestrate decisions across multiple solutions. With the newest version, Experian enhances your ability to consolidate numerous fraud risk signals into a single, holistic assessment to improve operational processes, stay ahead of fraudsters, and protect your customers. Read Press Release Learn More About CrossCore

Last week, artificial intelligence (AI) made waves in the news as the Vatican and tech giants signed a statement with a set of guidelines calling for ethical AI. These ethical concerns arose as the usage of artificial intelligence continues to increase in all industries – with the market for AI technology projected to reach $190.61 billion by 2025, according to a report from MarketsandMarkets™. In the “Rome Call for Ethics,” these new principles require that AI systems must adhere to ethical AI guidelines to protect basic human rights. The doctrine says AI must be developed with a focus on protecting and serving humanity, and that all algorithms should be designed by the principles of transparency, inclusion, responsibility, impartiality, reliability, security and privacy.  In addition, according to the document, organizations must consider the “duty of explanation” and ensure that decisions made as a result of these algorithms are explainable, transparent and fair. As artificial intelligence becomes increasingly used in many applications and ingrained into our everyday lives (facial recognition, lending decisions, virtual assistants, etc.), establishing new guidelines for ethical AI and its usage has become more critical than ever. For lenders and financial institutions, AI is poised to shape the future of banking and credit cards. AI is now being used to generate credit insights, reduce risk and make credit more widely available to more credit-worthy consumers. However, one of the challenges of AI is that these algorithms often can’t explain their reasoning or processes. That’s why AI explainability, or the methods and techniques in AI that make the results of the solution understandable by human experts, remains a large barrier for many institutions when it comes to AI adoption. The concept of ethical AI goes hand-in-hand with Regulation B of the Equal Opportunity Act (ECOA), which protects consumers from discrimination in any aspect of a credit transaction and requires that consumers receive clear explanations when lenders take adverse action. Adverse action letters, which are intended to inform consumers on why their credit applications were denied, must be transparent and incorporate reasons on why the decision was made – in order to promote fair lending. While ethical AI has made recent headlines, it’s not a new concept. Last week’s news highlights the need for explainability best practices for financial institutions as well as other organizations and industries. The time is now to implement these guidelines into algorithms and business processes of the present and future. Join our upcoming webinar as Experian experts dive into fair lending with ethical and explainable AI. Register now

While many companies are interested in implementing technology with advanced analytic capabilities, the concepts behind the technology can often be hard to understand. Demystifying the terminology around artificial intelligence and machine learning is one of the first steps for successful implementation. Discover what they mean for your financial institution in our new infographic: Learn more

Security. Convenience. Personalization. Finding the balance between these three priorities is key to creating a safe and low-friction customer experience. We surveyed more than 6,500 consumers and 650 businesses worldwide about these priorities for our 2020 Global Identity and Fraud Report: Most business are focusing on personalization, specifically in relation to upselling and cross-selling. This is frustrating customers who are looking for increases in both security and convenience. It’s possible to have all three. Read Full Report

Update: After closely monitoring updates from the WHO, CDC, and other relevant sources related to COVID-19, we have decided to cancel our 2020 Vision Conference. If you had the chance to experience tomorrow, today, would you take it? What if it meant you could get a glimpse into the future technology and trends that would take your organization to the next level? If you’re looking for a competitive edge – this is it. For more than 38 years, Experian’s premier conference has connected business leaders to data-driven ideas and solutions, fueling them to target new markets, grow existing customer bases, improve response rates, reduce fraud and increase profits. What’s in it for you? Everything to gain and nothing to lose. Are you a marketer? These sessions were made to drive your conversion rates to new heights: Know your customers via omnichannel marketing: Your customers are everywhere, but can you reach them? Learn how to drive business-expansion strategy, brand affinity and customer engagement across multiple channels. Plus, gain insight into connecting with customers via one-to-one messaging. By invitation only, the future of ITA marketing: An evolving landscape means marketers face new challenges in effectively targeting consumers while staying compliant. In this session, we’ll explore how you can leverage fair lending-friendly marketing data for targeting, analysis and measurement. Want the latest in technology trends? Dive into discussions to transform your customer experience: Credit in the age of technology transformation: Machine learning and artificial intelligence are the current darlings of big data, but the platform that drives the success of any big data endeavor is crucial. This session will dive into what happens behind the curtain. Put away your plastic – next-generation identity: An industry panel of experts discusses the newest digital identity and authentication capabilities – those in use today and also exciting solutions on the horizon. How about for the self-proclaimed data geeks? Analyze these: Alternative data: Listen in on an in-depth conversation about creative and impactful examples of using emerging data assets, such as alternative and consumer-permissioned data, for improved consumer inclusion, risk assessment and verification services. The next wave in open data: Experian will share their views on the potential of advanced data and models and how they benefit the global value chain – from consumer scores to business opportunities – regardless of local regulations. And the risk masters? Join us as we kick fraud to the curb: Understanding and tackling synthetic ID fraud: Synthetic IDs present a serious challenge for our entire industry. This expert panel will explore the current landscape – what’s working and what’s not, the expected impact of the next generation SSA eCBSV service, and best practice prevention methods. You are your ID – the new reality of biometrics: Consumers are becoming increasingly comfortable with biometrics. Just as CLEAR has transformed how we use our biometric identity to move through airports, sports venues and more, financial transactions can also be made friction-free. The point is, there’s something for everyone at Vision 2020. It’s not just another conference. Trade in stuffy tradeshow halls and another tri-fold brochure for the insights and connections you need to take your career and organization to the next level. Like technology itself, Vision 2020 promises to connect us, unify us and enable us all to create a better tomorrow. Join us for unique networking opportunities, one-on-one conversations with subject-matter experts and more than 50 breakout sessions with the industry’s most sought-after thought leaders.    

Do you have 20/20 vision when it comes to the readiness of your organization? How financially healthy are your customers today? They are likely facing some challenges and difficult choices. Based on a study by the Center for Financial Services Innovation (CFSI), almost half of the US adult population - that’s 112.5 million - say they do not have enough savings to cover at least three months of living expenses. With debt rising and a possible recession on the horizon, it’s crucial to have a solid strategy in place for your organization. Here are three easy steps to help you prepare: Anticipate the recession before it arrives Gathering a complete view of your customers can be difficult if you have multiple systems, which can result in subjective, costly and inefficient processes. If you don’t have a full picture of your customers, it’s hard to understand their risk, behavior and ability to pay and to determine the most effective treatment decisions. Having the right data is only the first step. Using analytics to make sense of the data helps you better understand your customers at an individual level, which will increase recovery rates and improve the customer experience. Analytics can provide early-warning indicators that identify customers most likely to miss payments, predict future behavior, and deliver the best treatment option based on a customer’s specific situation or behavior. With a deeper understanding of at-risk customers, you can apply more targeted interventions that are specific to each customer, so you can be confident your collections process is individualized, efficient and fair. The result? A cost-effective, compliant process focused on retaining valuable customers and reducing losses.   What to look for: ✔ Know when customers are experiencing negative credit events ✔ View consumer credit trends that may not yet be visible on your own account base ✔ Watch for payment stress – understand the actual payment consumers are making. Is it changing? ✔ See individual trends and take action – are your customers sliding down to a lower score band? ✔ Understand how your client-base is performing within your own portfolio and with other organizations   Take immediate and impactful actions around risk mitigation and staffing Every interaction with consumers needs optimizing, from target marketing through to collections and recovery. Organizations that proactively modernize their business to scale and increase effectiveness before the next economic downturn may avoid struggling to address rising delinquencies when the economy corrects itself. This may improve portfolio performance and collection capabilities — significantly increasing recoveries, containing costs and sustaining returns. Identify underperforming products and inefficient processes by staff. Consider reassessing the data used and the manual processes required for making decisions. Optimize product pricing and areas where organizations or staff could automate the decision processes.   Areas to focus: ✔ Identity theft protection and account takeover awareness ✔ Improve underwriting strategy and automation ✔ Maximize profitability — drive spend, optimize approvals, line assignment and pricing ✔ Evaluate collection risk strategies and operational efficiencies   Design and deploy a strategy to be organizationally and technologically ready for change Communication is key in debt recovery. Failing to contact customers via their preferred channel can cause frustration and reduce the likelihood of recovery. Your customers are looking for a convenient and discreet way to negotiate or repay debt, and if you aren’t providing one, you’re incurring higher collections costs and lower recovery rates. With developments in the digital world, consumer interactions have changed. Most people prefer to communicate via mobile or online, with little to no human interaction. Behavioral analytics help to automate and decide the next best action, so you contact the right customer at the right time through the right channel. In addition, offering a convenient, discreet way to negotiate or repay debt can result in customers who are more engaged and more likely to pay. Online and self-service portals along with AI-powered chatbots use the latest technology to provide a safe and customer-centric experience, creating less time-consuming interactions and higher customer satisfaction. Your digital collections process is more convenient and less stressful for consumers and more profitable and compliant for you. Visualize the future... ✔ Superior customer service is embraced at the end of the customer life cycle as it is in the beginning ✔ Leverage data, analytics, software, and industry expertise to drive an automated collections process with fewer manual interventions ✔ Meet the growing expectation for digital consumer self-service by providing the ability to proactively negotiate and manage debt through preferred contact channels ✔ When economy and market conditions change for the worst, have the right data, analytics, software in place and be prepared to implement relevant collections strategies to remain competitive in the market   Don’t wait until the next recession hits. Our collaborative approach to problem solving ensures you have the right solution in place to solve your most complex problems and are ready for market changes. The combination of our data, analytics, fraud tools, decisioning software and consulting services will help you proactively manage your portfolio to minimize the flow of accounts into collections and modernize your collections and recovery processes. Learn More

Machine learning, once a mysterious and unknown field, has come a long way throughout the years. Now, it's being implemented across a variety of industries - and expertise in all things related to machine learning is in high demand. Take a journey through the history of machine learning in our new infographic: Read the e-book

It may be a new decade of disruption, but one thing remains constant – the consumer is king. As such, customer experience (and continually evolving digital transformations necessary to keep up), digital expansion and all things identity will also reign supreme as we enter this new set of Roaring 20s. Here are seven of the top trends to keep tabs of through 2020 and beyond. 1. Data that does more – 100 million borrowers and counting Traditional, alternative, public record, consumer-permissioned, small business, big business, big, bigger, best – data has a lot of adjectives preceding it. But no matter how we define, categorize and collate data, the truth is there’s a lot of it that’s untapped, which is keeping financial institutions from operating at their max efficiency levels. Looking for ways to be bigger and bolder? Start with data to engage your credit-worthy consumer universe and beyond. Across the entire lending lifecycle, data offers endless opportunities – from prospecting and acquisitions to fraud and risk management. It fuels any technology solution you have or may want to implement over the coming year. Additionally, Experian is doing their part to create a more holistic picture of consumer creditworthiness with the launch of Experian LiftTM in November. The new suite of credit score products combines exclusive traditional credit, alternative credit and trended data assets, intended to help credit invisible and thin-file consumers gain access to fair and affordable credit. "We're committed to improving financial access while helping lenders make more informed decisions. Experian Lift is our latest example of this commitment brought to life,” said Greg Wright, Executive Vice President and Chief Product Officer for Experian Consumer Information Services. “Through Experian Boost, we're empowering consumers to play an active role in building their credit histories. And, with Experian Lift, we're empowering lenders to identify consumers who may otherwise be excluded from the traditional credit ecosystem,” he said. 2. Identity boom for the next generation Increasingly digital lifestyles have put personalization and frictionless transactions on hyperdrive. They are the expectation, not a nice-to-have. Having customer intelligence will become a necessary survival strategy for those in the market wanting to compete. Identity is not just for marketing purposes; it must be leveraged across the lending lifecycle and every customer interaction. Fragmented customer identities are more than flawed for decisioning purposes, which could potentially lead to losses. And, of course, the conversation around identity would be incomplete without a nod to privacy and security considerations. With the roll-out of the California Consumer Privacy Act (CCPA) earlier this month, we will wait to see if the other states follow suit. Regardless, consumers will continue to demand security and trust. 3. All about artificial intelligence and machine learning We get it – we all want the fastest, smartest, most efficient processes on limited – and/or shrinking – budgets. But implementing advanced analytics for your financial institution doesn’t have to break the bank. And, when it comes to delivering services and messaging to customers the way they want it, how to do that means digital transformation – specifically, leveraging big data and actionable analytics to evaluate risk, uncover industry intel and improve decisioning. One thing’s for certain, financial institutions looking to compete, gain traction and pull away from the competition in this next decade will need to do so by leveraging a future-facing partner’s expertise, platforms and data. AI and machine learning model development will go into hyperdrive to add accuracy, efficiency, and all-out speed. Real-time transactional processing is where it’s at. 4. Customer experience drives decisioning and everything Faster, better, more frictionless. 2020 and the decade will be all about making better decisions faster, catering to the continually quickening pace of consumer attention and need. Platforms and computing language aside, how do you increase processing speed at the same time as increasing risk mitigation? Implementing decisioning environments that cater to consumer preferences, coupled with best-in-class data are the first two steps to making this happen. This can facilitate instant decisioning within financial institutions. Looking beyond digital transformation, the next frontier is digital expansion. Open platforms enable financial institutions to readily add solutions from numerous providers so that they can connect, access and orchestrate decisions across multiple systems. Flexible APIs, single integrations and better strategy and design build the foundation of the framework to be implemented to enhance and elevate customer experience as it’s known today. 5. Credit marketing that keeps up with the digital, instant-gratification age Know your customer may be a common acronym for the financial services industry, but it should also be a baseline for determining whether to send a specific message to clients and prospects. From the basics, like prescreen, to omni-channel marketing campaigns, financial institutions need to leverage the communication channels that consumers prefer. From point of sale to mobile – there are endless possibilities to fit into your consumers’ credit journey. Marketing is clearly not a one-and-done tactic, and therefore multi-channel prequalification offers and other strategies will light the path for acquisitions and cross-sell/up-sell opportunities to come. By developing insights from customer data, financial institutions have a clear line of sight into determining optimal strategies for customer acquisition and increasing customer lifetime value. And, at the pinnacle, the modern customer acquisition engine will continue to help financial institutions best build, test and optimize their customer channel targeting strategies faster than ever before. From segmentation to deployment, and the right data across it all, today and tomorrow’s technology can solve many of financial organizations’ age-old customer acquisition challenges. 6. Three Rs: Recession, regulatory and residents of the White House Last March, the yield curve inverted for the first time since 2007. Though the timing of the next economic correction is debated, messaging is consistent around making a plan of action now. Whether it’s arming your collections department, building new systems, updating existing systems, or adjusting rules and strategy, there are gaps every organization needs to fill. By leveraging the stability of the economy now, financial institutions can put strategies in place to maximize profitability, manage risk, reduce bad debt/charge-offs, and ensure regulatory compliance among their list of to-do’s, ultimately resulting in a more efficient, better-performing program. Also, as we near the election later this year, the regulatory landscape will likely change more than the usual amount. Additionally, we will witness the first accounts of what CECL looks like for SEC-filing financial institutions (and if that will suggest anything for how non-SEC-filing institutions may fare as their deadline inches closer), as well as see the initial implications of the CCPA roll out and whether it will pave a path for other states to follow. As system sophistication continues to evolve, so do the risks (like security breaches) and new regulatory standards (like GDPR and CCPA) which provide reasons for organizations to transform. 7. Focus on fraud (in all forms) With evolving technology, comes evolved fraudsters. Whether it’s loyalty and rewards programs, account openings, breaches, there are so many angles and entry points. Synthetic identity fraud is the fastest-growing type of financial crime in the United States. The cost to businesses is estimated to grow to $1.2 billion by 2020, according to the Aite Group. To ensure the best protection for your business and your customers, a layered, risk-based approach to fraud management provides the highest levels of confidence in the industry. Balance is key – while being compliant with regulatory requirements and conscious of user experience, ensuring consumers’ peace of mind is priority one. Not a new trend, but recognizing fraud and recognizing good consumers will save continue to save financial institutions money and reputational harm, driving significant improvement in key performance indicators. Using the right data (and aggregating multiple data sets) and digital device intelligence tools is the one-two punch to protect your bottom line. For all your needs in 2020 and throughout the next decade, Experian has you covered. Learn more

    This article was updated on September 11, 2023. According to research, only 15% of American consumers have swapped out their go-to credit card in the past year and spend more money both online and offline with the card they designate as their top-of-wallet card. With over 578 million existing credit card accounts in the U.S., here are four top-of-wallet strategies to keep your card top of mind: Go digital In today’s digital world, the rules of customer engagement are changing – and card issuers must develop their digital capabilities, including identity resolution, to keep pace. Cardholders enjoy (and expect) the convenience of being able to apply for credit, track their purchases, make payments and view their monthly statements on-the-go. Another popular phenomenon? Digital wallets. Also known as e-wallets, these house digital versions of credit or debit cards and are stored in an app or a mobile device. Digital wallets can be used in conjunction with mobile payment systems, allowing customers to store digital coupons and pay for purchases with their smartphones. Financial institutions that digitally transform and adapt to these new dynamics can more efficiently service and retain their customers. Prioritize fraud prevention As customers’ affinity for e-commerce rises and cyberthieves grow smarter and more sophisticated, card issuers must improve their security measures and increase their focus on cutting-edge fraud management solutions. Not only should you be familiar with the many ways that criminals steal customer payment information, but you should ensure customers that you have multiple lines of defense against cyber threats. Many financial institutions have added digital “on/off switches,” allowing customers to remotely turn off their credit or debit card should they have misplaced it or suspect that they’re a victim of identity theft. With credit card fraud being the most prevalent in identity theft cases, failing to properly safeguard your customers impacts not only their experience but also your ability to grow revenue. Create a single customer view A single customer view is a consolidated, consistent and holistic representation of the data known by an organization about its customers. And according to Experian research, 68% of businesses are currently attempting to implement this type of strategy. By achieving a consolidated customer view, you can attain better consumer insight and fully understand your cardmembers’ needs and buying preferences. Careful tracking of all customer interactions enables you to target more accurately and implement effective marketing strategies. Provide incentives According to Experian research, 58% of consumers select credit cards based on rewards. The top incentives when selecting a rewards card include cashback, gas rewards and retail gift cards. Rewarding loyalty with ongoing benefits goes a long way to encourage customers to keep your credit card top of wallet but it’s also important to figure out what works – and what doesn’t. Bonus tip: Optimize credit limit management Managing credit limits is just as important as setting optimal credit limits from the get-go. Consumer credit needs will evolve over time along with their income and ability to pay. The key here is being able to identify qualified customers who can take on higher spending limits and also have a need. Leveraging advanced analytics models and a proactive credit limit management strategy can help you uncover areas of opportunity to increase wallet share and push your card toward that coveted top-of-wallet spot — or remain there. We recommend reviewing your credit limits at a regular cadence, but especially ahead of periods of increased spending such as the holiday season. In today’s competitive marketplace, getting your credit card top of wallet isn’t easy. That’s why we’re here to help. Experian’s comprehensive view of consumer credit data and best-in-class account management solutions help you target higher-spending customers and promote top-of-wallet use. Learn more

The challenges facing today’s marketers seem to be mounting and they can feel more pronounced for financial institutions. From customizing messaging and offerings at an individual customer level, increasing conversion rates, moving beyond digital while keeping an eye on traditional channels, and more, financial marketers are having to modernize their approach to customer acquisition. The most forward-thinking financial firms are turning to customer acquisition engines to help them best build, test and optimize their custom channel targeting strategies faster than ever before. But what functionality is right for your company? Here are 5 capabilities you should look for in a modern customer acquisition engine. Advanced Segmentation It’s without question that targeting and segmentation are vital to a successful financial marketing strategy. Make sure you select a tool that allows for advanced segmentation, ensuring the ability to uncover lookalike groups with similar attributes or behaviors and then customize messages or offerings accordingly. With the right customer acquisition engine, you should be able to build filters for targeted segments using a range of data including demographic, past behavior, loyalty or transaction history, offer response and then repurpose these segments across future campaigns. Campaign Design With the right campaign design, your team has the ability to greatly affect customer engagement. The right customer acquisition engine will allow your team to design a specific, optimized customer journey and content for each of the segments you create. When you’re ready to apply your credit criteria to the audience to generate a pre-screen, the best tools will allow you to view the size of your list adjusted in real-time. Make sure to look for an acquisition engine that can do all of this easily with a drag and drop user experience for faster and efficient campaign design. Rapid Deployment Once you finalize your audience for each channel or offer, the clock starts ticking. From bureau processing, data aggregation, targeting and deployment, the data that many firms are currently using for prospecting can be at least 60-days. When searching for a modern customer acquisition engine, make sure you choose a tool that gives you the option to fetch the freshest data (24-48 hours) before you deploy. If you’re sending the campaign to an outside firm to execute, timing is even more important. You’ll also want a system that can encrypt and decrypt lists to send to preferred partners to execute your marketing campaign. Support Whether you have an entire marketing department at your disposal or a lean, start-up style team, you’re going to want the highest level of support when it comes to onboarding, implementation and operational success. The best customer acquisition solution for your company will have a robust onboarding and support model in place to ensure client success. Look for solutions that offer hands-on instruction, flexible online or in-person training and analytical support. The best customer acquisition tool should be able to take your data and get you up and running in less than 30 days. Data, Data and more Data Any customer acquisition engine is only as good as the data you put into it. It should, of course, be able to include your own client data. However, relying exclusively on your own data can lead to incomplete analysis, missed opportunities and reduced impact. When choosing a customer acquisition engine, pick a system that gives your company access to the most local, regional and national credit data, in addition to alternative data and commercial data assets, on top of your own data. The optimum solutions can be fueled by the analytical power of full-file, archived tradeline data, along with attributes and models for the most robust results. Be sure your data partner has accounted for opt-outs, excludes data precluded by legal or regulatory restrictions and also anonymizes data files when linking your customer data. Data accuracy is also imperative here. Choose a marketing and technology partner who is constantly monitoring and correcting discrepancies in customer files across all bureaus. The best partners will have data accuracy rates at or above 99.9%.

In today’s ever-changing and hypercompetitive environment, the customer experience has taken center-stage – highlighting new expectations in the ways businesses interact with their customers. But studies show financial institutions are falling short. In fact, a recent study revealed that 94% of banking firms can’t deliver on the “personalization promise.” It’s not difficult to see why. Consumer preferences have changed, with many now preferring digital interactions. This has made it difficult for financial institutions to engage with consumers on a personal level. Nevertheless, customers expect seamless, consistent, and personalized experiences – that’s where the power of advanced analytics comes into play. It’s no secret that using advanced analytics can enable businesses to turn rich data into insights that lead to confident business decisions and strategy development. But these business tools can actually help financial institutions deliver on that promise of personalization. According to an Experian study, 90% of organizations say that embracing advanced analytics is critical to their ability to provide an excellent customer experience. By using data and analytics to anticipate and respond to customer behavior, companies can develop new and creative ways to cater to their audiences – revolutionizing the customer experience as a whole. It All Starts With Data Data is the foundation for a successful digital transformation – the lack of clean and cohesive datasets can hinder the ability to implement advanced analytic capabilities. However,  89% of organizations face challenges on how to effectively manage and consolidate their data, according to Experian’s Global Data Management Research Benchmark Report of 2019. Because consumers prefer digital interactions, companies have been able to gather a vast amount of customer data. Technology that uses advanced analytic capabilities (like machine learning and artificial intelligence) are capable of uncovering patterns in this data that may not otherwise be apparent, therefore opening doors to new avenues for companies to generate revenue. To start, companies need a strategy to access all customer data from all channels in a cohesive ecosystem – including data from their own data warehouses and a variety of different data sources. Depending on their needs, the data elements can come from a third party data provider such as: a credit bureau, alternative data, marketing data, data gathered during each customer contact, survey data and more. Once compiled, companies can achieve a more holistic and single view of their customer. With this single view, companies will be able to deliver more relevant and tailored experiences that are in-line with rising customer expectations. From Personalized Experiences to Predicting the Future The most progressive financial institutions have found that using analytics and machine learning to conquer the wide variety of customer data has made it easier to master the customer experience. With advanced analytics, these companies gain deeper insights into their customers and deliver highly relevant and beneficial offers based on the holistic views of their customers. When data is provided, technology with advanced analytic capabilities can transform this information into intelligent outputs, allowing companies to optimize and automate business processes with the customer in mind. Data, analytics and automation are the keys to delivering better customer experiences. Analytics is the process of converting data into actionable information so firms can understand their customers and take decisive action. By leveraging this business intelligence, companies can quickly adapt to consumer demand. Predictive models and forecasts, increasingly powered by machine learning, help lenders and other businesses understand risks and predict future trends and consumer responses. Prescriptive analytics help offer the right products to the right customer at the right time and price. By mastering all of these, businesses can be wherever their customers are. The Experian Advantage With insights into over 270 million customers and a wealth of traditional credit and alternative data, we’re able to drive prescriptive solutions to solve your most complex market and portfolio problems across the customer lifecycle – while reinventing and maintaining an excellent customer experience. If your company is ready for an advanced analytical transformation, Experian can help get you there. Learn More

AI, machine learning, and Big Data – these are no longer just buzzwords. The advanced analytics techniques and analytics-based tools that are available to financial institutions today are powerful but underutilized. And the 30% of banks, credit unions and fintechs successfully deploying them are driving better data-driven decisions, more positive customer experiences and stronger profitability. As the opportunities surrounding advanced analytics continue to grow, more lenders are eager to adopt these capabilities to make the most of their datasets. And it’s understandable that financial institution are excited at the possibilities and insights that advanced analytics can bring to their business. However, there are some key considerations to keep in mind as you begin this important digital transformation. Here are three things you should do as your financial institution begins its advanced analytics journey. Ensure consistent and clean data quality Companies have a plethora of data and information on their customers. The main hurdles that many organizations face is being able to turn this information into a clean and cohesive dataset and formulating an effective and long-term data management strategy. Trying to implement advanced analytic capabilities while lacking an effective data governance strategy is like building a house on a poor foundation – likely to fail. Data quality issues, such as inconsistent data, data gaps, and incomplete and duplicated data, also haunt many organizations, making it difficult to complete their analytics objectives. Ensuring that issues in data quality are managed is the key to gaining the correct insights for your business.   Establish and maintain a single view of customers The power of advanced analytics can only be as strong as the data provided. Unfortunately, many companies don’t realize that advanced analytics is much more powerful when companies are able to establish a single view of their customers. Companies need to establish and maintain a single view of customers in order to begin implementing advanced analytic capabilities. According to Experian research, a single customer view is a consistent, accurate and holistic view of your organization’s customers, prospects, and their data. Having full visibility and a 360 view into your customers paves the way for companies to make personalized, relevant, timely and precise decisions. But as many companies have begun to realize, getting this single view of customers is easier said than done. Organizations need to make sure that data should always be up-to-date, unique and available in order to begin a complete digital transformation.   Ensure the right resources and commitment for your advanced analytics initiative It’s important to have the top-down commitment within your organization for advanced analytics. From the C-suite down, everyone should be on the same page as to the value analytics will bring and the investment the project might require. Organizations that want to move forward with implementing advanced analytic capabilities need to make sure to set aside the right financial and human resources that will be needed for the journey. This may seem daunting, but it doesn’t have to be. A common myth is that the costs of new hardware, new hires and the costs required to maintain, configure, and set up new technology will make advanced analytics implementation far too expensive and difficult to maintain. However, many organizations don’t realize that it’s not necessary to allocate large capital expenses to implement advanced analytics. All it takes is finding the right-sized solution with configurations to fit the team size and skill level in your organization. Moreover, finding the right partner and team (whether internal or external) can be an efficient way to fill temporary skills gaps on your team. No digital transformation initiative is without its challenges. However, beginning your advanced analytics journey on the right footing can deliver unparalleled growth, profitability and opportunities. Still not sure where to begin? At Experian, we offer a wide range of solutions to help you harness the full power and potential of data and analytics. Our consultants and development teams have been a game-changer for financial institutions, helping them get more value, insight and profitability out of their data and modeling than ever before. Learn More

It’s Halloween time – time for trick or treating, costume parties and monsters lurking in the background. But this year, the monsters aren’t just in the background. They’re in your portfolio.  This year, “Frankenstein” has another meaning. Much more ominous than the neighbor kid in the costume.   “Frankenstein IDs” refer to synthetic identities — a type of fraud carried out by criminals that have created fictitious identities. Just as Dr. Frankenstein’s monster was stitched together from parts, synthetic IDs are stitched together pieces of mismatched identities — some fake, some real, some even deceased.   It typically takes fraudsters 12 to 18 months to create and nurture a synthetic identity before it’s ready to "bust out" – the act of building a credit history with the intent of maxing out all available credit and eventually disappearing. That means fraudsters are investing money and time to build numerous tradelines, ensure these "fake" identities are in good credit standing, and ultimately steal the largest amount of money possible.   “Wait Master, it might be dangerous . . . you go, first.” — Igor   Synthetic identities are a notable challenge for many financial institutions and retail organizations. According to the recently released Federal Reserve Board White Paper, synthetic identity fraud accounts for roughly 20% of all credit losses, and cost U.S. businesses roughly $6 billion in 2016 with an estimated 41% growth over 2 years. 85-95% of applicants identified as potential synthetic are not even flagged by traditional fraud models.   The Social Security Administration recently announced plans for the electronic Consent Based Social Security Number Verification service – pilot program scheduled for June 2020. This service is designed to bring efficiency to the process for verifying Social Security numbers directly with the government agency. Once available, this verification could be an important tool in the fight against the elusive “Frankenstein” identity monster.   But with the Social Security Administration's pilot program not scheduled for launch until the middle of next year, how can financial institutions and other organizations bridge the gap and adequately prepare for a potential uptick in synthetic identity fraud attacks? It comes down to a multilayered approach that relies on advanced data, analytics, and technology — and focuses on identity.   Any significant progress in making synthetic identities easier to detect could cost fraudsters significant time and money.   Far too many financial institutions and other organizations depend solely on basic demographic information and snapshots in time to confirm the legitimacy of an identity. These organizations need to think beyond those capabilities. The real value of data in many cases lies between the data points. We have seen this with synthetic identity — where a seemingly legitimate identity only shows risk when we can analyze its connections and relationships to other individuals and characteristics.   In addition to our High Risk Fraud Score, we now have a Synthetic Fraud Risk Level Indicator available on credit profiles. These advanced detection capabilities are delivered via the simplicity of a straightforward indicator returned on the credit profile which lenders can use to trigger additional identity verification processes.   While there are programs and initiatives in the works to help financial institutions and other organizations combat synthetic identity fraud, it's important to keep in mind there's no silver bullet, or stake to the heart, to completely keep these Frankenstein IDs out.   Oh, and don’t forget… “It’s pronounced ‘Fronkensteen.’ ” — Dr. Frankenstein

As credit unions look to grow their loan portfolios and acquire new members, improving the member experience is critical to the process and remains a primary focus. In order to compete in the lending universe, financial tools that empower and enable a positive experience are critical to meeting these requirements. That being said, an Experian study reveals that 90% of executives agree that embracing a digital transformation is critical to providing excellent experiences. In this connected, data-driven world, digital transformations are opening the door for better and greater opportunities. With data and analytics, credit unions will be able to gain data-driven insights, to identify key channels of member engagement, create complete member views and further maximize growth and lending strategies. Data-driven organizations that can anticipate their members’ needs and preferences will be able to deepen relationships and maintain relevance – gaining an edge in a highly-competitive environment. The digital revolution is happening now – and it’s time for future-focused credit unions to adapt to changing expectations. However, according to an Experian report, 39% of organizations lack the customer insight and data required to provide these member experiences. That’s where Experian comes in. Join Mike Thibodeaux, Experian’s Senior Director, Fraud and Identity Sales Engineers, for a breakout session at CUNA Lending 2019 on Monday, Nov. 4 at 1:45 p.m. or 3:15 p.m. He will take a closer look at best practices and digital tools that credit unions can use to maximize credit union membership growth, while managing and mitigating fraud. The discussion will revolve around multiple topics, critical to the member experience conversation, including: Increasing profitable loan growth Lending deeper to the underserved Levering digital services and tools for your credit union Minimizing fraud activity (specifically synthetic identity fraud) and credit losses Enhancing and maintaining positive member experiences Experian is excited to once again take part in the 2019 CUNA Lending Council Conference, an event that brings together the credit union movement’s best and brightest in lending. If you’re attending, make sure to engage and connect with our thought leaders at our booth and learn how we’re dedicated to helping credit unions of all sizes advance their decisioning and services. Our team is committed to being a trusted partner – providing solutions that enable you to further grow, protect and serve within your field of membership. Learn More

Over the years, businesses have gathered a plethora of datasets on their customers. However, there is no value in data alone. The true value comes from the insights gained and actions that can be derived from these datasets. Advanced analytics is the key to understanding the data and extracting the critical information needed to unlock these insights. AI and machine learning in particular, are two emerging technologies with advanced analytics capabilities that can help companies achieve their business goals. According to an IBM survey, 61% of company executives indicated that machine learning and AI are their company’s most significant data initiatives in 2019. These leaders recognize that advanced analytics is transforming the way companies traditionally operate. It is no longer just a want, but a must. With a proper strategy, advanced analytics can be a competitive differentiator for your financial institution. Here are some ways that advanced analytics can empower your organization: Provide Personalized Customer Experiences Business leaders know that their customers want personalized, frictionless and enhanced experiences. That’s why improving the customer experience is the number one priority for 80 percent of executives globally, according to an Experian study. The data is already there – companies have insights into what products their customers like, the channels they use to communicate, and other preferences. By utilizing the capabilities of advanced analytics, companies can extract more value from this data and gain better insights to help create more meaningful, personalized and profitable lending decisions. Reduce Costs Advanced analytics allows companies to deploy new models and strategies more efficiently – reducing expenses associated with managing models for multiple lending products and bureaus. For example, OneMain Financial, was able to successfully drive down risk modeling expenses after implementing a solution with advanced analytics capabilities. Improve Accuracy and Speed to Market To stay ahead of the competition, companies need to maintain fast-moving environments. The speed, accuracy and power of a company’s predictive models and forecasts are crucial for success. Being able to respond to changing market conditions with insights derived from advanced analytics is a key differentiator for future-forward companies. Advanced analytic capabilities empower companies to anticipate new trends and drive rapid development and deployment, creating an agile environment of continual improvement. Drive Growth and Expand Your Customer Base With the rise of AI, machine learning and big data, the opportunities to expand the credit universe is greater than ever. Advanced analytic capabilities allow companies to scale datasets and get a bird’s eye view into a consumer’s true financial position – regardless of whether they have a credit history. The insights derived from advanced analytics opens doors for thin file or credit invisible customers to be seen – effectively allowing lenders to expand their customer base. Meet Compliance Requirements Staying on top of model risk and governance should always remain top of mind for any institution. Analytical processing aggregates and pulls new information from a wide range of data sources, allowing your institution to make more accurate and faster decisions. This enables lenders to lend more fairly, manage models that stand up to regulatory scrutiny, and keep up with changes in reporting practices and regulations. Better, faster and smarter decisions. It all starts with advanced analytics. Businesses must take advantage of the opportunities that come with implementing advanced analytics, or risk losing their customers to more future-forward organizations. At Experian, we believe that using big data can help power opportunities for your company. Learn how we can help you leverage your data faster and more effectively. Learn More