Tag: decision analytics

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

For most businesses, building the best online experience for consumers requires a balance between security and convenience. But the challenge has always been finding a happy medium between the two – offering enough security that won’t get in the way of convenience and vice versa. In the past, it was always believed that one would always come at the expense of the other. But technology and innovation is changing how businesses approach security and is allowing them to give the maximum potential of both. Consumers want security AND convenience Consumers consider security and convenience as the foundation of their online experience. Findings from our 2019 Global Identity and Fraud Report revealed approximately 74 percent of consumers ranked security as the most important part of their online experience, followed by convenience. In other words, they expect businesses to provide them with both. We see this with how consumers are typically using the same security information each time they open a new digital account – out of convenience. But if one account is compromised, the consumer becomes vulnerable to possible fraudulent activity. With today’s technology, businesses can give consumers an easier and more secure way to access their digital accounts. Creating the optimal online experience More security usually meant creating more passwords, answering more security questions, completing CAPTCHA tests, etc. While consumers are willing to work through these friction-inducing methods to complete a transaction or access an account, it’s not always the most convenient process. Advanced data and technology has opened doors for new authentication methods, such as physical and behavioral biometrics, digital tokenization, device intelligence and machine learning, to maximize the potential for businesses to provide the best online experience possible. In fact, consumers have expressed greater confidence in businesses that implement these advanced security methods. Rates of consumer confidence in passwords was only 44 percent, compared to a 74 percent rate of consumer confidence in physical biometrics. Consumers are willing to embrace the latest security technology because it provides the security and convenience they want from businesses. While traditional forms of security were sufficient, advanced authentication methods have proven to be more reliable forms of security that consumers trust and can improve their online experience. The optimal online experience is a balance between security and convenience. Innovative technologies and data are helping businesses protect people’s identities and provide consumers with an improved online experience.