Tag: customer experience

Leverage financial wellness and identity protection products and turn them into high-engagement experiences that drive revenue.

Gain invaluable insights into how value-added financial services could strengthen consumer relationships and enhance decisioning. Read more!

In today’s digital lending landscape, fraudsters are more sophisticated, coordinated, and relentless than ever. For companies like Terrace Finance — a specialty finance platform connecting over 5,000 merchants, consumers, and lenders — effectively staying ahead of these threats is a major competitive advantage. That is why Terrace Finance partnered with NeuroID, a part of Experian, to bring behavioral analytics into their fraud prevention strategy. It has given Terrace’s team a proactive, real-time defense that is transforming how they detect and respond to attacks — potentially stopping fraud before it ever reaches their lending partners. The challenge: Sophisticated fraud in a high-stakes ecosystem Terrace Finance operates in a complex environment, offering financing across a wide range of industries and credit profiles. With applications flowing in from countless channels, the risk of fraud is ever-present. A single fraudulent transaction can damage lender relationships or even cut off financing access for entire merchant groups. According to CEO Andy Hopkins, protecting its partners is a top priority for Terrace:“We know that each individual fraud attack can be very costly for merchants, and some merchants will get shut off from their lending partners because fraud was let through ... It is necessary in this business to keep fraud at a tolerable level, with the ultimate goal to eliminate it entirely.” Prior to NeuroID, Terrace was confident in its ability to validate submitted data. But with concerns about GenAI-powered fraud growing, including the threat of next-generation fraud bots, Terrace sought out a solution that could provide visibility into how data was being entered and detect risk before applications are submitted. The solution: Behavioral analytics from NeuroID via Experian After integrating NeuroID through Experian’s orchestration platform, Terrace gained access to real-time behavioral signals that detected fraud before data was even submitted. Just hours after Terrace turned NeuroID on, behavioral signals revealed a major attack in progress — NeuroID enabled Terrace to respond faster than ever and reduce risk immediately. “Going live was my most nerve-wracking day. We knew we would see data that we have never seen before and sure enough, we were right in the middle of an attack,” Hopkins said. “We thought the fraud was a little more generic and a little more spread out. What we found was much more coordinated activities, but this also meant we could bring more surgical solutions to the problem instead of broad strokes.” Terrace has seen significant results with NeuroID in place, including: Together, NeuroID and Experian enabled Terrace to build a layered, intelligent fraud defense that adapts in real time. A partnership built on innovation Terrace Finance’s success is a testament to what is  possible when forward-thinking companies partner with innovative technology providers. With Experian’s fraud analytics and NeuroID’s behavioral intelligence, they have built a fraud prevention strategy that is proactive, precise, and scalable. And they are not stopping there. Terrace is now working with Experian to explore additional tools and insights across the ecosystem, continuing to refine their fraud defenses and deliver the best possible experience for genuine users. “We use the analogy of a stream,” Hopkins explained. “Rocks block the flow, and as you remove them, it flows better. But that means smaller rocks are now exposed. We can repeat these improvements until the water flows smoothly.” Learn more about Terrace Finance and NeuroID Want more of the story? Read the full case study to explore how behavioral analytics provided immediate and long-term value to Terrace Finance’s innovative fraud prevention strategy. Read case study

Discover how data analytics in utilities helps energy providers navigate regulatory, economic, and operational challenges. Learn how utility analytics and advanced analytics solutions from Experian can optimize operations and enhance customer engagement.

Learn how background screeners can optimize pre-employment verification processes, reduce fraud risks, and ensure compliance.

We are squarely in the holiday shopping season. From the flurry of promotional emails to the endless shopping lists, there are many to-dos and even more opportunities for financial institutions at this time of year. The holiday shopping season is not just a peak period for consumer spending; it’s also a critical time for financial institutions to strategize, innovate, and drive value. According to the National Retail Federation, U.S. holiday retail sales are projected to approach $1 trillion in 2024, , and with an ever-evolving consumer behavior landscape, financial institutions need actionable strategies to stand out, secure loyalty, and drive growth during this period of heightened spending. Download our playbook: "How to prepare for the Holiday Shopping Season" Here’s how financial institutions can capitalize on the holiday shopping season, including key insights, actionable strategies, and data-backed trends. 1. Understand the holiday shopping landscape Key stats to consider: U.S. consumers spent $210 billion online during the 2022 holiday season, according to Adobe Analytics, marking a 3.5% increase from 2021. Experian data reveals that 31% of all holiday purchases in 2022 occurred in October, highlighting the extended shopping season. Cyber Week accounted for just 8% of total holiday spending, according to Experian’s Holiday Spending Trends and Insights Report, emphasizing the importance of a broad, season-long strategy. What this means for financial institutions: Timing is crucial. Your campaigns are already underway if you get an early start, and it’s critical to sustain them through December. Focus beyond Cyber Week. Develop long-term engagement strategies to capture spending throughout the season. 2. Leverage Gen Z’s growing spending power With an estimated $360 billion in disposable income, according to Bloomberg, Gen Z is a powerful force in the holiday market​. This generation values personalized, seamless experiences and is highly active online. Strategies to capture Gen Z: Offer digital-first solutions that enhance the holiday shopping journey, such as interactive portals or AI-powered customer support. Provide loyalty incentives tailored to this demographic, like cash-back rewards or exclusive access to services. Learn more about Gen Z in our State of Gen Z Report. To learn more about all generations' projected consumer spending, read new insights from Experian here, including 45% of Gen X and 52% of Boomers expect their spending to remain consistent with last year. 3. Optimize pre-holiday strategies Portfolio Review: Assess consumer behavior trends and adjust risk models to align with changing economic conditions. Identify opportunities to engage dormant accounts or offer tailored credit lines to existing customers. Actionable tactics: Expand offerings. Position your products and services with promotional campaigns targeting high-value segments. Personalize experiences. Use advanced analytics to segment clients and craft offers that resonate with their holiday needs or anticipate their possible post-holiday needs. 4. Ensure top-of-mind awareness During the holiday shopping season, competition to be the “top of wallet” is fierce. Experian’s data shows that 58% of high spenders shop evenly across the season, while 31% of average spenders do most of their shopping in December​. Strategies for success: Early engagement: Launch educational campaigns to empower credit education and identity protection during this period of increased transactions. Loyalty programs: Offer incentives, such as discounts or rewards, that encourage repeat engagement during the season. Omnichannel presence: Utilize digital, email, and event marketing to maintain visibility across platforms. 5. Combat fraud with multi-layered strategies The holiday shopping season sees an increase in fraud, with card testing being the number one attack vector in the U.S. according to Experian’s 2024 Identity and Fraud Study. Fraudulent activity such as identity theft and synthetic IDs can also escalate​. Fight tomorrow’s fraud today: Identity verification: Use advanced fraud detection tools, like Experian’s Ascend Fraud Sandbox, to validate accounts in real-time. Monitor dormant accounts: Watch these accounts with caution and assess for potential fraud risk. Strengthen cybersecurity: Implement multi-layered strategies, including behavioral analytics and artificial intelligence (AI), to reduce vulnerabilities. 6. Post-holiday follow-up: retain and manage risk Once the holiday rush is over, the focus shifts to managing potential payment stress and fostering long-term relationships. Post-holiday strategies: Debt monitoring: Keep an eye on debt-to-income and debt-to-limit ratios to identify clients at risk of defaulting. Customer support: Offer tailored assistance programs for clients showing signs of financial stress, preserving goodwill and loyalty. Fraud checks: Watch for first-party fraud and unusual return patterns, which can spike in January. 7. Anticipate consumer trends in the New Year The aftermath of the holidays often reveals deeper insights into consumer health: Rising credit balances: January often sees an uptick in outstanding balances, highlighting the need for proactive credit management. Shifts in spending behavior: According to McKinsey, consumers are increasingly cautious post-holiday, favoring savings and value-based spending. What this means for financial institutions: Align with clients’ needs for financial flexibility. The holiday shopping season is a time that demands precise planning and execution. Financial institutions can maximize their impact during this critical period by starting early, leveraging advanced analytics, and maintaining a strong focus on fraud prevention. And remember, success in the holiday season extends beyond December. Building strong relationships and managing risk ensures a smooth transition into the new year, setting the stage for continued growth. Ready to optimize your strategy? Contact us for tailored recommendations during the holiday season and beyond. Download the Holiday Shopping Season Playbook

Mobile identity verification confirms the legitimacy of users accessing services via their mobile device.

As part of banks’ anti-money laundering (AML) programs, KYC in banking can help stop corruption, money laundering and terrorist financing. Creating and maintaining KYC programs is also important for regulatory compliance, reputation management and fraud prevention.  The three components of KYC in banking programs Banks can largely determine how to set up their KYC and AML programs within the applicable regulatory guidelines. In the United States, KYC needs to happen when banks initially onboard a new customer. But it’s not a one-and-done event—ongoing customer and transaction monitoring is also important.  1. Customer Identification Program (CIP) Creating a robust Customer Identification Program (CIP) is an essential part of KYC. At a minimum, a bank’s CIP requires it to collect the following information from new customers: Name Date of birth Address Identification number, such as a Social Security number (SSN) or Employer Identification Number (EIN) Banks' CIPs also have to use risk-based procedures to verify customers’ identities and form a reasonable belief that they know the customer's true identity.1 This might involve comparing the information from the application to the customer’s government-issued ID, other identifying documents and authoritative data sources, such as credit bureau databases. Additionally, the bank's CIP will govern how the bank:  Retains the customer’s identifying information Compares customer to government lists  Provides customers with adequate notices Banks can create CIPs that meet all the requirements in various ways, and many use third-party solutions to quickly collect data, detect forged or falsified documents and verify the provided information.  2. Customer due diligence (CDD)  CIP and CDD overlap, but the CIP primarily verifies a customer’s identity while customer due diligence (CDD) helps banks understand the risk that each customer poses. To do this, banks try to understand what various types of customers do, what those customers’ normal banking activity looks like, and in contrast, what could be unusual or suspicious activity.  Financial institutions can use risk ratings and scores to evaluate customers and then use simplified, standard or enhanced due diligence (EDD) processes based on the results. For example, customers who might pose a greater risk of laundering money or financing terrorism may need to undergo additional screenings and clarify the source of their funds. 3. Ongoing monitoring Ongoing or continuous monitoring of customers’ identities and transactions is also important for staying compliant with AML regulations and stopping fraud.  The monitoring can help banks spot a significant change in the identity of the customer, beneficial owner or account, which may require a new KYC check. Unusual transactions can also be a sign of money laundering or fraud, and they may require the bank to file a suspicious activity report (SAR). Why is KYC important in banking? Understanding and implementing KYC in banking processes can be important for several reasons:  Regulatory compliance: Although the specific laws and rules can vary by country or region, many banks are required to have AML procedures, including KYC. The fines for violating AML regulations can be in the hundreds of millions— a few banks have been fined over $1 billion for lax AML enforcement and sanctions breaching. Reputation management: In some cases, enforcement actions and fines were headline news. Banks that don’t have robust KYC procedures in place risk losing their customers' trust and respect.  Fraud prevention: In addition to the regulatory requirements, KYC policies and systems can also work alongside fraud management solutions for banks. Identity verification at onboarding can help banks identify synthetic identities attempting to open money mule accounts or take out loans. Ongoing monitoring can also be important for identifying long-term fraud schemes and large fraud rings.  KYC in a digital-first world Modernizing KYC in banking is a key part of financial institutions’ digital transformation efforts. Part of that journey is updating the systems and tools in place to meet the expectations of customers and regulators. Experian’s 2025 U.S. Identity and Fraud Report shows four in 10 consumers considered abandoning a new account setup midway through the process – rising to 50% among high-income earners – highlighting growing expectations for seamless digital experiences. The survey wasn’t specific to financial services, but friction could be a problem for banks wanting to attract new account holders. Just as access to additional data sources and machine learning help automate underwriting, financial institutions can use technological advances to add an appropriate amount of friction based on various risk signals. Some of these can be run in the background, such as an electronic Consent Based Social Security Number Verification (eCBSV) check to verify the customer’s name, SSN and date of birth match the Social Security Administration’s records. Others may require more customer involvement, such as taking a selfie that’s then compared to the image on their photo ID — Experian CrossCore® Doc Capture enables this type of verification.  Experian is a leader in identity and data management  Our identity verification solutions use proprietary and third-party data to help banks manage their KYC procedures, including identity verification and Customer Identification Programs (CIP). As a global leader in identity management and fraud prevention, we combine advanced analytics, rich data assets, and innovative technology to deliver secure, seamless identity experiences. Our comprehensive identity ecosystem enables organizations to confidently verify, authenticate and manage customer identities across the lifecycle—reducing fraud risk, improving compliance and enhancing the customer experience.By bundling identity verification with fraud assessment, banks can stop fraudsters while quickly resolving identity discrepancies. The automated processes also allow you to offer a low-friction identity verification experience and use step-up authentications as needed.  Explore identity solutions

Data-driven marketing insights can help your organization target more accurately and create a better customer experience.

Automate your credit limit management process to better serve your customers and quickly respond to the volatile market.

To stay competitive and engage high-value customers, you’ll need to optimize your customer acquisition process.

Sometimes logging into an account feels a bit like playing 20 questions. Security is vital for a positive customer experience, and engaging the right identity verification strategies is essential to proactive fraud prevention. For financial institutions and businesses, secure authentication is more important than ever. It is imperative for customer safety – which drives retention and loyalty – and your bottom line – as fraud has determinantal effects on and off the balance sheet. Information sharing has proliferated, as has the number of times consumers are prompted to provide access to sensitive information. While today’s consumer has grown accustomed to providing such information, there’s also a heightened demand for security. According to Experian’s 2023 U.S. Identity and Fraud Report, nearly two-thirds (64%) of consumers say they’re very or somewhat concerned with online safety, listing identity theft, stolen card information and online privacy as top concerns. Customers want to know who they are providing access to and whether that entity will have their safety in mind. From a business perspective, one way to ensure that only the right people can get in is by using (KBA). KBA takes traditional authentication methods, like passwords and Personal Identification Numbers (PINs), one step further by creating an additional layer of security through collecting private facts from each user. In this post, we'll look at how KBA works, what its benefits are as a form of identity verification, and how it can improve customer trust. Introducing Knowledge Based Authentication (KBA): What it is and how it works Knowledge Based Authentication can be part of a multifactor authentication solution and is one way to stay on top of privacy and security for your customers – existing and new. KBA is a feature designed to protect online accounts by verifying the account holder’s identity. It involves answering a series of personal questions, such as mother's maiden name or first pet's name, that only the account holder should know. This system has become increasingly popular due to its effectiveness in preventing fraud and identity theft. With KBA, businesses and individuals can have peace of mind that their information is protected by a reliable authentication system that is difficult for unauthorized users to breach. Benefits of implementing KBA and a multifactor authentication strategy By implementing KBA into your business, customers experience an additional layer of security by verifying the identity of users through personalized questions. This reduces the risk of fraud and enhances customer trust and confidence. Secondly, it improves the customer experience by making the authentication process faster and user-friendly. Lastly, KBA reduces costs by automating the authentication process and reducing the need for manual intervention. However, KBA is just one facet of an ideal strategy. Multifactor authentication provides confidence while reducing friction. Risk-based authentication tools allow organizations to assess risk to apply the appropriate level of security. Factors to consider adding to your authentication processes include: Generating unique one-time passwords (OTPs): By creating a new OTP for each transaction, you can increase the level of security. Confirm device ownership: A multifactored approach applies device intelligence checks to increase confidence that the message is reaching the correct user. Maintain low friction with secondary options: If the OTP fails or can’t be attempted by the user, working with a provider who allows an automatic default to another authentication service, such as a knowledge-based authentication solution, decreases end-user friction. Identifying potential security risks associated with KBA KBA relies on personal information that may easily be discovered via social media and other public records, which makes it vulnerable to fraud and identity theft. This highlights the need for a multilayered fraud and identity solution. The landscape of digital security is constantly changing, leveraging an arsenal of fraud and identity prevention strategies, like document verification, one-time passcode, and various identity authentication and verification measures, is critical for keeping your customers and business safe. Commonly used technologies for enhancing KBA security With the rising need for secure authentication, KBA systems have become increasingly popular. However, cyberthreats evolve at an alarming rate, making it imperative to stay current with the latest fraud schemes and how to enhance and supplement your security. Biometrics, like facial recognition and fingerprint scans, as a tactic is gaining traction, as evidenced by “85% of consumers report physical biometrics as the most trusted and secure authentication method they have recently encountered,” according to Experian’s 2023 U.S. Identity and Fraud Report. Additionally, machine learning algorithms detect patterns and anomalies in user behavior and flag any potential security breaches. Multi-factor authentication is another tool that adds an extra layer of security by requiring users to provide multiple forms of identification before logging in. Keeping up with these and other technological advancements can help ensure your KBA system stays one step ahead of potential cyberattacks. Interestingly, there’s a disconnect between the technologies consumers feel safe with and/or are prepared to use versus the technologies and strategies that organizations implement. According to the U.S. Identity and Fraud Report, biometrics are only currently used by 33% of businesses to detect and protect against fraud. An opportunity for business differentiation and driving customer loyalty through a better customer experience may be tapping into some of these lesser used – but sought after – technologies. Compliance with industry standards regarding KBA Ensuring that your system complies with industry standards regarding KBA is crucial for protecting sensitive information from unauthorized access. By implementing the following tips, you can stay ahead of the game and safeguard your organization's data. Analyze your system's current authentication methods and evaluate if they meet industry standards. Additionally, follow standard guidelines for data storage and encryption, limit access to only authorized personnel, and y current with regulations. Lastly, conduct frequent security audits and perform vulnerability tests to identify and address any potential threats. Knowledge-based authentication offers a robust security solution for businesses of all sizes, and incorporating KBA as part of a multifactor authentication strategy is a winning course of action. It provides an added layer of protection for personal data, encourages user accountability, and safeguards against unauthorized access. By leveraging appropriate KBA technologies and maintaining compliance with industry standards, it is possible to create a secure system for customers that gives you peace of mind for your business and bottom line. Experian can help you with knowledge-based authentication offerings, a multifactor authentication strategy and everything in between to enhance your existing authentication process without causing user fatigue. Increase your pass rates, confirm device ownership and add security to risky or high-value transactions, all while executing identity verification and fraud detection to protect your business from risk. The most important step is getting started. Learn more

For companies that regularly engage in financial transactions, having a customer identification program (CIP) is mandatory to comply with the regulations around identity verification requirements across the customer lifecycle. In this blog post, we will delve into the essentials of a customer identification program, what it entails, and why it is important for businesses to implement one. What is a customer identification program? A CIP is a set of procedures implemented by financial institutions to verify the identity of their customers. The purpose of a CIP is to be a part of a financial institution’s fraud management solutions, with similar goals as to detect and prevent fraud like money laundering, identity theft, and other fraudulent activities. The program enables financial institutions to assess the risk level associated with a particular customer and determine whether their business dealings are legitimate. An effective CIP program should check the following boxes: Confidently verify customer identities Seamless authentication Understand and anticipate customer activities Where does Know Your Customer (KYC) fit in? KYC policies must include a robust CIP across the customer lifecycle from initial onboarding through portfolio management. KYC solutions encompass the financial institution’s customer identification program, customer due diligence and ongoing monitoring. What are the requirements for a CIP? Customer identification program requirements vary depending on the type of financial institution, the type of account opened, and other factors. However, the essential components of a CIP include verifying the customer's identity using government-issued identification, obtaining and verifying the customer's address, and checking the customer against a list of known criminals, terrorists, or suspicious individuals. These measures  help detect and prevent financial crimes. Why is a CIP important for businesses? CIP helps businesses mitigate risk by ensuring they have accurate and up-to-date information about their customers. This also helps financial institutions comply with laws and regulations that require them to monitor financial transactions for any suspicious activities. By having a robust CIP in place, businesses can establish trust and rapport with their customers. According to Experian’s 2024 U.S. Identity and Fraud Report, 63% of consumers say it's extremely or very important for businesses to recognize them online. Having an effective CIP in place is part of financial institutions showing their consumers that they have their best interests top of mind. Finding the right partner It’s important to find a partner you trust when working to establish processes and procedures for verifying customer identity, address, and other relevant information. Companies can also utilize specialized software that can help streamline the CIP process and ensure that it is being carried out accurately and consistently. Experian’s proprietary and partner data sources and flexible monitoring and segmentation tools allow you to resolve CIP discrepancies and fraud risk in a single step, all while keeping pace with emerging fraud threats with effective customer identification software. Putting consumers first is paramount. The security of their identity is priority one, but financial institutions must pay equal attention to their consumers’ preferences and experiences. It is not just enough to verify customer identities. Leading financial institutions will automate customer identification to reduce manual intervention and verify with a reasonable belief that the identity is valid and eligible to use the services you provide. Seamless experiences with the right amount of friction (I.e., multi-factor authentication) should also be pursued to preserve the quality of the customer experience. Putting it all together As cybersecurity threats are becoming more sophisticated, it is essential for financial institutions to protect their customerinformation and level up their fraud prevention solutions. Implementing a customer identification program is an essential component in achieving that objective. A robust CIP helps organizations detect, prevent, and deter fraudulent activities while ensuring compliance with regulatory requirements. While implementing a CIP can be complex, having a solid plan and establishing clear guidelines is the best way for companies to safeguard customer information and maintain their reputation. CIPs are an integral part of financial institutions security infrastructures and must be a business priority. By ensuring that they have accurate and up-to-date data on their customers, they can mitigate risk, establish trust, and comply with regulatory requirements. A sound CIP program can help financial institutions detect and prevent financial crimes and cyber threats while ensuring that legitimate business transactions are not disrupted, therefore safeguarding their customers' information and protecting their own reputation. Learn more

Learn what automated ID verification is and tips on implementing automation identity verification solutions into your business practice.

To drive competitive growth and customer retention, banks must find innovative ways to elevate the banking customer experience.