Customer Experience

Consumer demand has shaped the way businesses worldwide have adjusted or intend to adjust operations and investments throughout the pandemic. Businesses that have struggled to meet the new expectations of consumers will need to meet ever-changing conditions with careful investment and data-driven analyses. Experian’s latest Global Insights Report shows two-thirds of consumers globally have remained loyal to their favorite brands during the pandemic. Brand loyalty was found to be the highest in India, at 80%, and lowest in France, with a bit more than half, at 57%. However, loyalty may not be a given going forward. Competitive differentiation is founded on how you engage customers, at every interaction. Our research shows that loyalty is intrinsically linked to trust, security and convenience. Payment system providers, such as PayPal, have retained the top spot for customer loyalty for three years in a row, but there continues to be movement among the remaining top five industries. This fluctuation, indicative of consumer preferences and behaviors, is fueled by the varying speed at which businesses globally are transforming front- and back-end systems. Particularly, this holds true for the pace of digitization of credit risk and fraud risk operations.   Leverage data to retain loyalty Consumers have higher expectations than ever before, and businesses need to meet or exceed these expectations by adapting to correlate with the dynamic nature of the customer journey throughout the continuing pandemic. The report also found that 60% of people have higher expectations of their digital experience than before Covid-19, increasing the need for businesses to make sure that they are leveraging data to benefit their customers, providing secure and convenient digital experiences. Although most customers have shifted to digital and prefer the conveniences of online, mobile and contactless transactions, concerns over data security remain. In response, businesses need to carefully navigate customer experiences to ease apprehension. A great example is the trust, and therefore loyalty, that can be established by using customer data for identity authentication.  Customers gain protection while enjoying a hassle-free experience that is non-threatening and transparent. Some businesses recognize these needs, with 40% reporting they are doing a better job communicating how customer data is used to enhance the customer experience, protect consumer information and personalize products and services. Integrating data, analytics and technology Our survey also found that only 24% of businesses are deliberately making changes to their digital customer journey. However, many of them have intentions of making changes and are increasing their budgets in order to do so. Three of the top five solutions businesses are using to help improve the customer journey are designed for driving insights into faster customer decisions. Of these top five solutions, the use of AI to improve customer decisions ranks first amongst banks, payment providers, and retailers ranks first. Companies who are, or plan to, accelerate the implementation of AI can make faster, smarter data-driven decisions to better serve consumers. The key to better serving customers lies in a business’s ability to integrate data and decisioning technology to deliver fast and relevant products and services. In fact, the study found that one in three consumers are only willing to wait 30 seconds or less before abandoning an online transaction, including accessing their bank accounts. With such a short window to keep the customer engaged, faster decision making is imperative to not only retaining a customer’s loyalty on a long-term basis but getting them to commit to a transaction once. Businesses, particularly retailers and financial services who implement the necessary technologies will help move economies from sustainability mode towards a future of growth but cannot do so without continued consumer demand. While customer loyalty does remain, it is up to businesses to adapt and accommodate to retain, and potentially increase the impact of these adjustments. Regardless of where they’re transacting, consumers expect a secure, convenient experience—and they’ll quickly abandon transactions if they’re let down. So, businesses must keep their focus on transformation. Discover more insights from our longitudinal study of the impact of Covid-19 on businesses and consumers.

Explore these November headlines to stayin-the-know. Coverage includes forward-looking fraud prevention, International Fraud Awareness Week, and consumer and business research takeaways from our global experts. Fraud prevention strategies to prepare for the future Chris Ryan, Senior Fraud Solutions Consultant, provides tips on proactively combatting fraud risks to be positioned for success in a post-Covid-19 world — including categorizing fraud and using advanced analytics and technology to keep pace. #IFAW2020 Interview: David Britton, VP of Industry Solutions, Experian For International Fraud Awareness Week, David Britton, Vice President of Industry Solutions, speaks with Infosecurity Magazine about the current fraud landscape, common fraudster tactics, and best practices for preventing fraud. Only 30 seconds to impress — meeting APAC consumers’ online expectations Sisca Margaretta, Chief Marketing Officer for Experian Asia Pacific, explains why speed, seamlessness, and a thoughtful user experience are no longer nice-to-haves, but musts in today's environment. Pandemic entitlement: Consumers demand more online, Experian finds This MediaPost article explores business sentiment verse consumer expectations for their digital experience in the wake of Covid-19, with insights on how businesses can win from Steve Wagner, Global Managing Director of Decision Analytics. Are APAC banks equipped to help consumers in financial distress while juggling credit risk? Ben Elliot, CEO, Experian Asia Pacific, discusses the impact of Covid-19 on consumer financial wellbeing and spending power, and what the financial services and insurance industries can do to help those in financial distress while effectively managing credit risk. Stay in the know with our latest insights:

In the not so distant past, consumers mostly interacted with their banks in person. Retail customers, for instance, waited in line to make a deposit or talk to a banker. And though the branch may have been busy, a moving line gave comfort to customers that the wait wouldn't be much longer. However, customer expectations in the digital era are dramatically different. According to Experian's new research, one in three customers will abandon a transaction if they have to wait more than 30 seconds, especially when accessing bank accounts. And that's just the tip of the iceberg. When it comes to the digital experience, consumers increasingly want seamless service at every point of their journey. Now, as the Covid-19 crisis continues to accelerate digital demand, financial institutions face more and more customers with similar if not greater expectations. Expectations for things like personalized products, contextual lending decisions, and offline-online seamlessness. And those organizations that understand these evolving needs and deploy cloud-based decision management to ensure they meet them will likely be the winners in this new world. Right here, right now Banking digital transformation was already underway before the pandemic began. Most retail banks provided some customer-facing app. In efforts to automate and streamline business processes, many organizations have also started to migrate their backend infrastructure from on-premise software to the cloud. The pandemic, though, ramped up the demand for everything digital seemingly overnight. Consider that consumer adoption of mobile wallets has jumped 11% since July, largely due to increased contactless in-payments. In the height of the crisis, customers turned to online platforms for financial assistance, from federal loans and grants to mortgage relief and credit applications to small business loans. Businesses that had already migrated to cloud-based solutions were able to scale their response to meet that growth. But that those hadn't? They faced the combined challenge of needing to scale existing services to serve the influx of online customers while simultaneously adding new digital capabilities. As a result, some organizations have ended up playing catch up with their digital offerings. Experian research shows, though, that it's a race worth finishing. Sixty percent of customers say they have higher expectations of their digital experience now than they did before the pandemic. To be sure, the crisis will end. Those expectations, however, are here to stay. A glimpse of the future Banks may see fewer customers in person, but that doesn't mean their service can't be personal. The data analytics features of cloud-based decision management software allow businesses to know more about their customers, providing personalized offers and services right when customers need them most. One bank we work with in India provides an ideal example. They've leveraged deep analytics and decisioning solutions to accelerate their online loan approval process from days down to seconds. They're no longer turning people away who are good candidates for loans. And they've increased their lending without having to take on additional risk. It's a win-win that reveals how organizations can leverage technology to satisfy customer expectations during the height of a crisis and continue to in a post-Covid reality. With cloud-based solutions, organizations can become 100% customer-centric, both in convenience and personalization. The data gives financial institutions a holistic view of their customers, enabling them to anticipate needs and tailor solutions to the individual. Transformation and soon No organization is going to digitally transform overnight. But given the urgency of the demand, there are proven ways to improve their digital customer experience sooner rather than later. Small-to-mid-sized organizations, for instance, should consider out-of-the-box Software-as-a-Service (SaaS) solutions. These offer pre-determined, high-demand use cases such as online eligibility checks and customer acquisition tools. Organizations can modify these solutions to meet specific market needs while saving time on ramping up a fully custom solution. Additionally, even with the imperative to meet the digital demand, it's important to remember that proper planning leads to successful cloud migrations. Consider all the possibilities of what could go wrong and right in terms of incident management, customer service, links to data sources, and more. Rehearse your transition as much as feasible. The preparation may add a bit of time on the front end, but you'll decrease the likelihood of significant disruption when you do migrate and that's worth the effort. The march toward an increasingly digital customer experience only moves in one direction: forward. The pandemic may have pushed financial institutions to speed up their transition to cloud-based decision management, perhaps a bit earlier than some anticipated. But the outcome of a proactive, data-driven organization centered on serving customers promises to be better for everyone. Related stories: New research available: The continued impact of Covid-19 on consumer behaviors and business strategies  Automating fairness: Using analytics to help consumers in a pandemic era In digital transformation, small wins lead to big outcomes 

As the world faces another resurgence of the coronavirus, businesses will again be tested on their response—but this time consumer expectations will be much higher. In the beginning of the pandemic, businesses scrambled to set up remote workforces and new ways to support customers as everything locked down. In the short-term, many consumers stayed loyal to businesses they frequented before Covid-19. However, our recent research shows that loyalty may not be a given going forward. Download Global Insights Report – September/October edition Key insights: 1 out of 3 consumers is only willing to wait up to 30 seconds before abandoning an online transaction, especially when accessing their bank accounts. Half of the businesses surveyed have either mostly or completely resumed operations since Covid-19 began but only 24% are deliberately making changes to their digital customer journey. 60% of people have higher expectations of their digital experience than before Covid-19. In mid-September 2020, we surveyed 3,000 consumers and 900 businesses in 10 countries, including Australia, Brazil, France, Germany, India, Japan, Singapore, Spain, the United Kingdom, and the United States. This report is the second of three in a longitudinal study exploring the major shifts in consumer behavior and business strategy pre- and post-Covid-19. Our first report in the sequence, published in  July/August, can be found here: Global Insights Report – July/August edition. Though businesses worldwide have started to see their operations stabilize, moving from survival mode toward sustainability, growth still presents a challenge. High expectations for security and convenience compounded by the increased demand for online payments, banking and shopping are pushing businesses to re-imagine the customer journey—and the investments they make to drive future growth. Top 5 initiatives amongst banks, payments, and retailers that have been accelerated by Covid-19: Use of AI to improve customer decisions Strengthening the security of mobile and digital channels Increasing digital acquisition and improving engagement Automating customer decisions Understanding customer profiles (e.g. affordability, preferences, behaviors) Most consumers reported a positive experience in their sudden shift to the digital channel and plan to increase their online transactions. The pandemic has also accelerated the move toward contactless payments for when shopping in-person is essential. The result has been a merging of consumers’ online and offline worlds calling upon businesses to create a fluidity between cross-channel interactions. 61% of people surveyed now regularly order groceries or food delivery online. This is a 7-point increase in this type of online payment since July. Adoption of mobile wallets has jumped +11% since July as consumers continue to increase their online activities and contactless in-person transactions. 70% of businesses have a plan to move customers out of Covid-induced collections but the implications of that impact on the balance sheet and future provisions are not yet clear. Regardless of where they’re transacting, consumers expect a secure, convenient experience—and they’ll quickly abandon financial transactions if they’re let down. Are businesses adapting the customer journey as quickly as customers are expecting more from their digital experience? Keeping up with consumer expectations: 77% of people said they feel most secure when using physical biometrics, and 62% of people said it improves their customer experience when managing finances or payments online. Consumers are most concerned about protecting their financial data over other types of information (e.g. personal, contact, web history). The concern is highest in France (46%) and Japan (43%). For the past 3 years, consumers trust payment system providers (e.g. PayPal, WePay, Apply Pay) the most for consistently providing a secure and convenient digital customer experience. Find out what top 3 solutions businesses are using to help improve the customer journey.

For executives and teams across the financial services sector, the question isn't should we digitally transform—but how. That's where things get tricky. According to the Financial Brand’s Digital Banking Report, when asked about the progress of their digital transformation journey, only 17% of organizations reported that their transformation was deployed “at scale” — and a scant 7% said their transformation was deployed at scale and working. Tackling an enterprise-wide transformation effort is no small feat; it requires significant investment and time. Still, many organizations become understandably discouraged when transformation efforts don't yield the anticipated results. And experts contend that transformation initiatives fail not because of products but because organizations need wholesale culture changes to sustain innovation. All that may be true. However, a boil the ocean approach can dramatically increase the timeline of an already lengthy process. By building a strategy based on small iterative wins, businesses can break down the process and deliver interim tangible successes. In doing so, organizations sustain momentum for the broader digital transformation vision and benefit from feedback along the way. Your north star In concept, digital transformation suggests that we are in a finite time and place going from point A to point B. At some point, every financial institution will be digitally transformed. Manual processes, on-premise software, and siloed data will start to disappear. And conversations about transformation will give way to discussions of how to sustain and further advance the bank's digital capabilities. There actually isn’t a “finished state”, but a continuous progress towards a better customer experience. But establishing a long-term objective for transformation initiatives is critical. The leadership team needs to have a vision, and relay the overall goal to the rest of the organization. For instance, in the Financial Brand survey, banks and credit unions noted that improving risk management and security, improving the customer experience, and reducing costs were their top areas of focus. (Unfortunately, the same study revealed that less than half of the organizations surveyed reported high success levels in transforming these areas). In establishing a digital transformation north star, you ensure that smaller projects align with the broader vision. The path there may not be perfectly straight, but leaders can prioritize initiatives that point in the same direction. Small wins, big results As noted, it's challenging to complete a digital transformation journey in one fell swoop. Most organizations can't change technologically and culturally at a rapid pace. Yet, there's a pressing need for innovation. Creating a roadmap of incremental projects and wins can ensure your organization is making steady progress toward that north star goal. I often advise digital transformation teams to start with a small project that seems achievable. That may be transitioning a non-cloud offering to the cloud or introducing an existing interface to a new geography. You solve that problem, and then you evangelize the success; even if it's a small win, you want to shout about it. It's not about nourishing your ego. Instead, the celebration helps build momentum with your frontline staff and clients. It also provides proof points for executive stakeholders. The latter makes it easier to continue funding projects once your leadership sees that the initiative produces results. Then you can begin to expand your transformation perimeter, building on each win with another digital project. Dialing in your customer recognition and improving authentication, for instance, offers areas that are ripe for innovation—especially at a time when online transactions are on the rise and customer expectations are high. The right team for the job Successful digital transformation initiatives require leadership by a core team that's well-networked across the organization. They need to be highly visible to other teams and committed to promoting the cause and selling the vision, and making noise about any success because that's a core part of their job. Leveraging data and analytics along the way is also essential. Data can help you determine which problems to prioritize. And advanced analytics offers critical insights into what's working for customers and the areas that merit attention sooner rather than later. The process of digital transformation is an evolution. Organizations that view it as such should strive for strategies that deliver wins early. That way, they can build momentum, align near-term projects around long-term goals, and reap the rewards of digital transformation throughout the entire journey. Related stories: Impact of technology on changing business operations New global research: The impact of Covid-19 on consumer behaviors and business strategies Digital transformation through cloud-first decisioning

We may not always get what we want, but in many cases, if we feel that we were treated fairly, we’re satisfied. Our July 2020 global research reveals as much—in the survey, 52% of U.S. consumers that believed that organizations treated them fairly during the Covid-19 crisis said they’d give the company more of their business. Conversely, 76% of consumers who thought businesses treated them unfairly reported that they wouldn’t be returning customers. As we progress through the pandemic, fairness will become a critical component of the customer experience. Government support for workers and businesses in many countries is ending, and we’re likely only beginning to feel the real economic impacts. Financial institutions that prioritize fairness in their customer engagements—and leverage advanced analytics and automation to help—will likely retain more customers in the near-term and build relationships that last into the future. We’ve only just begun  For most of the West, the pandemic began in earnest in March. The economic consequences were quick to follow. In our global survey conducted in July, two times as many consumers reported that they were having difficulty paying their bills compared to before the Covid-19 crisis. As a response, 20% of consumers said they were cutting back their discretionary spending, and another 13% reported that they’d dipped into their savings to make ends meet. Around the world, those who were struggling reached out to financial institutions for help. A full 5% of global consumers enrolled in some form of financial assistance, including from savings and loan institutions, retail banks, insurance companies, and government programs. Hearteningly, more than half of these consumers said they’d had a positive experience. And as previously noted, a similar percentage felt they were treated fairly. That’s the silver lining of an exceptionally challenging year. However, for consumers, the struggle will likely continue. Much of the support that financial institutions have provided came via government aid or mandates that are close to expiring. For instance, in the U.S., the CARES act required lenders to offer homeowners six months of fee-free forbearance on loan payments. With that grace period coming to an end, one lender reports that only 10% of borrowers have exited forbearance into a modified payment plan. Government assistance is running out, but the fact that entire sectors such as travel and hospitality remain incapacitated should still cause concern. Over the next year, consumers will likely continue to face financial obstacles, but with a shrinking safety net. Streamlining fairness Amidst the continued uncertainty, organizations should continue to prioritize fairness. Advanced data analytics can help with that task, and the technology also promises to make it easier and faster. Consider that in the 2008-2009 financial crisis, assessing a customer’s ability to afford a loan or credit product was primarily a manual process. Organizations faced backlogs of customers needing help and were unable to respond in a timely manner. Today, financial institutions can use advanced analytics and machine learning to leverage data, with the specific aim of assisting customers in financial straits. For instance, it may not be feasible for banks to permit customers to remain forbearance for another six months. However, they can use data to quickly and accurately determine what payments customers can afford. The technology enables organizations to scale their financial workout or accommodation efforts, reducing the manual workload. Just as importantly, the analytics also provides data to back decisions, making the process more transparent. There’s a big difference between thinking you’re being fair and being able to prove it. With an analytics program, organizations can inform customers exactly what they’re being offered and why. Understanding the data empowers customers to make better decisions about whether they accept any aid. In some parts of the world, regulators are also requesting similar assurance that the banks have provided options in the customers’ best interest. A challenge—and opportunity Fairness and trust are closely connected. And when it comes to the customer experience, incorporating both yields happier, more loyal customers. I often think back to work I did with a banking organization earlier in my career. Our NPS scores regarding our collections, recovery, and fraud team were quite good. It’s easy to assume that customers in financial distress may be less than pleased to be dealing with creditors or lenders. But the dynamic shifts when you’re able to help them at the time they need it most. Now, thanks to data and advanced analytics, financial institutions can implement fairness at every turn—limiting the economic damage to customers, reducing their own risk, and enhancing their relationships along the way. Related articles: Global research study: The impact of Covid-19 on consumer behaviors and business strategies The role of the virtual assistant: Meet consumer demand for digital experience Digitally managing your at-risk customers most impacted by Covid-19

The Covid-19 crisis has been a bit like existing inside a shaken snow globe—it disrupted everything, and a lot remains up in the air. However, amidst the uncertainty of the pandemic, one thing has become evident: Cultivating customer trust is more critical than ever. Trust naturally generates loyalty. This is especially true during and after a crisis. For example, Experian's latest global research from July 2020 shows 52% of customers who felt that businesses treated them fairly during the pandemic plan to give those companies more of their business. That fairness bred trust and that trust will undoubtedly lead to more business. As consumers continue to increase their digital transactions, companies need to work hard to enhance customer trust. Improved identity authentication and recognition, for example, will play a key role. As everything begins to settle, those that succeed will find their business on far more steady ground. Does trust even matter? It's a good question—and the answer may be evolving in real-time. Consider that in 2019, Experian's global identity & fraud study showed that digital adoption did not indicate consumer trust of the business. "Consumers still adopt digital channels despite being highly skeptical of the businesses," the study noted. Social media provides an excellent example. Overall, most consumers distrust many of the popular social media platforms, yet they continue to use them regularly. Interestingly, widespread adoption is linked more to convenience than trust. However, this comes with a real caveat: Customers are less concerned about trust when the product is more frivolous. For instance, not trusting a media outlet or social media platform is very different from not trusting a financial institution. Also, a lack of adoption doesn't always mean that customers don't trust the business. In the financial service and payments realm, low adoption may simply reflect that customers use the platforms less regularly. Now, as consumers increase their reliance on online services, maintaining trust will be paramount. For instance, since Coronavirus began, consumers have increased their use and awareness of mobile wallets by 8%, and their use of retail payment apps by 6%. Balancing the convenience that people have needed with the necessary trust will go a long way towards keeping usage high once the crisis subsides. A virtuous cycle Within any digital experience, several components inform customer trust. You want to ensure accurate customer recognition, as well as transparency with your authentication. Robust fraud protection and positive digital experiences also play essential roles. These form the Cycle of Trust, a virtuous circle that ultimately encourages customers to share more information with your company and pursue more transactions. Our 2019 study reveals the importance of each part of this cycle, and we see it playing out now. For example, 90% of consumers are willing to participate in a more thorough identity verification process early on to have easier account access in the future. The ability to routinely and accurately recognize your customers helps build their trust in your technology and products. Also, 76% of customers have more confidence in companies that use biometrics over passwords to protect their information. That means that you can use advanced authentication strategies to enhance trust even more. Transparency also comes into play. Letting people know how you're using their information and whom you're sharing it with makes them more apt to trust your organization—and continue to share their data. The future of trust This cycle represents the goal. In practice, though, there are still quite a few challenges that prevent organizations from getting that wheel spinning. For instance, many have separated the risk assessment processes of verifying customers at signup, logging in, and transacting, so there's no seamless experience. Instead, customers navigate different solutions to onboard, authenticate their identity, and complete transactions. A company may recognize a customer at one point in the process, but not all the way through. What's more, organizations often still place the onus on the consumer for how they represent themselves in the digital world. Authentication processes require them to remember passwords or retrieve codes from their phone. But as noted, the pandemic has opened an opportunity for dramatic improvement. Consumers are at a rare moment in which they're open to change—and they're even looking for it. For example, since the beginning of the pandemic, 60% of customers say they have higher expectations for online experiences. More than half of customers are also more willing to provide organizations they trust with personal information and financial data. Finally, 44% of customers note that since Covid, they are more trusting of companies that demonstrate security. So how can you increase trust while also meeting evolving customer expectations? Organizations that pave the way will likely assume more responsibility for recognizing and authenticating customers. This starts with becoming more creative in using the data they already have access to recognize and authenticate customers. Extending this passive and continuous recognition across channels will also be necessary. Doing so connects the disparate processes and creates a more seamless digital experience. Such initiatives also remove the identity burden from the customer and kickstart that virtuous cycle. No one anticipated the Covid-19 crisis. But it's opened up the chance to create fairer, more trusting, more transparent digital experiences for everyone—and companies shouldn't pass that up. Related stories: Latest global research: The impact of Covid-19 on consumer behaviors and business strategies Better identifying your customers leads to greater trust Covid-19 as a Gateway to Fraud: Top 5 Global Fraud Trends to Watch Out for in 2020 Podcast: Securing online identity

To keep you informed, we’ve gathered the top global, August headlines covering the latest insights from our experts and recent hot topics. Email attack type: Account takeoverZDNet Japan covers ATO (account takeover) fraud and the variety of techniques used in this attack type to access user accounts and ultimately steal money or sensitive information. In today’s rapidly changing economy, businesses need to get consumer recognition rightDavid Britton, VP of Global Identity & Fraud, shares insights on the disparity between businesses' confidence in recognizing consumers and consumers' lower confidence in this capability by these businesses. EDBI invests in fraud protection fintech VestaThe Straits Times, Singapore, provides an overview of this investment, including details around the increase in online fraud losses recognized across the Asia Pacific (APAC). How banks can balance UX and security amid a pandemicThis Forbes article explores the impact of Covid-19 on consumers, including the critical need for banks to balance consumer protection and good user experience. Stay in the know with our latest insights:

The global pandemic led to swift and unexpected shifts in consumer behavior, from the significant increase in the use of digital channels, to the decrease in ability to pay for many. Based on this environment, we’ll highlight where senior financial services executives should focus their analytics and decisioning teams’ efforts to provide a bit of certainty in an uncertain time: Confidence and demand for credit First off, it’s important that lenders consider current dynamics when monitoring and measuring the effect of fluctuating market conditions on their portfolio. Overall lower consumer confidence in the ability to access credit is not surprising, but the true impact on demand for credit is yet to be concluded. “As a result of both the pandemic itself and the changed economic conditions it caused, consumers’ appetite for new credit and the ways in which they are using existing credit are in flux.” – Leslie Parrish, “Uncertainty Is Certain: Consumers’ Financial Outlook at Mid-Year 2020,” Aite Group, July 2020 From late June to early July 2020, we surveyed 3,000 consumers and 900 businesses in 10 countries. This research indicates some consumers are responding to economic uncertainty by reducing spend and tapping into financial reserves, while other consumers are using credit to make strategic decisions such as refinancing, buying a new house, or opening new lines of credit for access to money. Regardless of customer sentiment, it's important for businesses to understand these realities: Consumer demand for digital is increasing — our research shows it's gone up 20% since Covid-19 Digital channels will help fuel new business — with a marked 40% increase in consumers opening new loans digitally based on our research These indicators should drive investment in solutions to secure the digital channel and improve digital onboarding, including data, analytics, and technology. Such investments help meet consumers’ digital demands, safeguarding your ability to retain existing customers and win new business. >> Download the Global Insights Report Ability to pay Lenders should also be mindful of the volatility of the current environment and ensure their teams rely on data and analytics that enable accurate decisions based on a consumer’s current financial situation. Given active programs established to supplement a decline in consumer income, we are still enjoying a nourished economic environment. However, our research shows that globally, since Covid-19 began, the number of consumers having difficulty paying their bills has doubled, and according to Aite Group, half of consumers in the U.S. reported their household has suffered a loss of employment income since mid-March.1 These conditions enforce the need to have the right tools in place to best assess consumer creditworthiness. Decisioning in the new norm As lenders continue to focus on business health, it’s key to consider operational efficiency and ongoing optimization. Given there is no precedent to the current global pandemic, lenders will need to rely on innovative solutions to learn and adapt in real-time. Our research shows that many businesses know change is needed and are seeking solutions to tackling this challenge. One in five businesses globally lack confidence in the effectiveness of their credit risk and collection decisions since Covid-19 began. Sixty percent plan to increase budget for analytics and credit risk management. Meanwhile, the top three solutions businesses believe will improve operational efficiency when supporting customers’ financial needs are: automated decision management, cloud-based applications, and artificial intelligence. To keep pace and be successful through this unchartered territory, lenders must leverage innovative technologies such as cloud-enabled solutions, artificial intelligence, and machine learning. Though today’s lending environment is likely to include levels of volatility for some time, making the right adjustments now can help lenders support consumers and business performance in the long term. >> Get more insights on the impact of Covid-19 on consumer behaviors and business strategies _____ 1 “Uncertainty Is Certain: Consumers’ Financial Outlook at Mid-Year 2020,” Aite Group, July 2020

Download the report People’s changing behaviors to safeguard their health during the ongoing global Coronavirus pandemic has fueled a massive shift to digital channels. As people’s day-to-day routines and behaviors shift, so too is the attention on businesses to find new ways of staying relevant to their customers. Two-thirds of consumers are staying loyal to the businesses they preferred prior to Covid-19. 20% increase in overall online transactions – a 41% increase in online grocery shopping, 40% increase in applying for loans online, and a 22% increase in food delivery or takeout. 50% of consumers surveyed expect to increase their online transactions even more in the next 12-months. Uncertainty for what the next 6-12 months will hold has people and businesses vacillating between optimism and pessimism.  Some likely contributing factors could be public health gains and setbacks for containing the virus, some businesses opening only to close again, and the prospect of some students returning to school in-person and while others go remote – and what all of that means for economic recovery. At the time of our study (June 30 -July 7, 2020), some lenders and retailers are demonstrating more confidence than others, while consumers - many already feeling depleted - are expecting and bracing for an expected second wave of Covid-19.  Consumer financial hardship 65% of people believe their country has not yet recovered from the economic impact of the pandemic. 30% of consumers reported a decline in household income; India saw the largest household decline at 43%. The number of people having difficulty paying their bills has doubled since Covid-19 began. Businesses operational challenges 53% of businesses believe their operational processes have mostly or completely recovered since Covid-19 began. The U.S. (80%) is the most confident and Germany (27%) is the least. Top challenges faced by most businesses globally are the health and safety of their employees and customers, adjusting operations to support customers, and managing increased demand across channels and functions. 1 in 5 businesses surveyed lacks confidence in the effectiveness of their credit risk and collection decisions since Covid-19 began.  Beyond their intense focus on the safety and security of their employees and customers, our research shows that businesses are making strategic investments – to give consumers greater access to goods and services, and to better manage their customer relationships. They’re also exploring automation and cloud technology to relieve operational constraints. Whether it’s a lender providing financial assistance to small businesses and loan re-payment options to customers or it’s a retailer providing essential supplies and services to people who need it most, helping people and delivering on expectations for secure, relevant customer experience is top of mind. Top areas of investment: strengthening the security of mobile and digital channels, new credit risk analytics, and the creation of artificial intelligence (AI) models and increasing digital customer acquisition and engagement. Top 3 solutions businesses believe will improve operational efficiency when supporting customers’ financial needs are automated decision management, cloud-based applications, and artificial intelligence. 60% of businesses plan to increase the budget for analytics and credit risk management. Businesses in the UK, U.S., Australia, and Spain have already increased the adoption of AI and advanced analytics. To solve for the lack of economic precedent, 51% of businesses say they’re asking customers to contribute more information/data and 49% say they’re exploring new or alternative data sources. Download Experian's Decision Analytics Global Insights Report July/August 2020 and learn more about the impact of Covid-19 on consumer behaviors and business strategies

In a recent interview by Irene Ang from Identity Engineering at Microsoft, our own Marika Vilen, SVP of Platform Commercialization, discusses the importance of identity verification solutions and how to seamlessly integrate those across the digital user journey. We are very excited to be working with Microsoft. Identity verification allows organizations to confirm the person they are dealing with online is who they say they are. In light of the ongoing global pandemic, we see an uptick in digital activity and therefore an increased need for organizations to better verify who they are interacting with online, all while minimizing customer friction. Marika Vilen, SVP of Platform Commercialization, Experian Since COVID-19 started, there has been a 20% increase overall in consumer online transaction activities, our recent proprietary research shows. Consumers cite security as the most important factor in their online experience, particularly in regards to managing their financial data. So, what does this digital shift mean for businesses? Identity verification is an important step to take in digital interactions, and some level of friction can invoke a sense of security, but too much for too many customers can have a negative impact on the bottom line. So, while benefits are evident for identity verification, the process must also factor in the impact on the consumer. By taking a holistic approach that integrates across all stages in a customer relationship, customer friction can be minimized – and customer satisfaction and security maximized. We are proud to be working with Microsoft, integrating solutions that provide rich identity data assets and help inform real-time decision making. Related articles: Are traditional online identification methods becoming obsolete?  Q&A: Biometrics as the catalyst for trust in a socially distanced world  Getting to grips with the shifting fraud landscape 

Insights from Harry Singh, SVP, Global Decisioning, and Hristo Zahariev, Global Product Manager. Due to the global pandemic, one of the key challenges facing many consumers today is the ability to obtain support either from their credit provider or from government. This is manifesting itself in two ways – consumers facing very short-term financial difficulty, which might mean a payment holiday for a few months, or longer-term structural issues such as unemployment, which requires a very different set of treatments and outcomes. But what can businesses do to ensure consumer demand is met while taking care of customer experience? We look at the importance of digital channels within the decisioning environment, and how investment using AI can not only lead to consumer satisfaction now but also a sound business strategy for the future, regardless of how unpredictable that future may be.    How the industry can respond to consumers during this time of need A recent study from March this year looked at businesses that are not yet fully digital in terms of how they handle their consumer interactions, and how they can reach out to consumers to help them during the Covid-19 crisis. With call centers and operational centers closed, and anything between five and 50,000 applications a week coming into banks across the world since the pandemic began, businesses have inevitably been struggling with demand. Based on existing operational models examined within the study, if businesses were to manually manage these applications, they would need to double in size in terms of full-time employees, and follow-up interactions post approval may still not be met. Managing demand and staying compliant, while enabling consumers to successfully interreact without waiting hours to get through is the challenge faced by many businesses. It’s a balancing act that is both an opportunity and a risk and should be treated as such. Helping consumers in a way that is digital, while allowing for self-serve, is fundamental in meeting these new levels of demand - and doing so in a way that doesn’t feel demeaning to the consumer is where true differentiation begins. During a stressful time for consumers, it’s important that businesses step up to the challenge of demystifying their interactions, removing embarrassment around finances while also retaining an element of human engagement. Thanks to AI and a layered, cloud-first approach to decisioning, contacting pre-qualified consumers for both forbearance and hardship can now be done through a business’s banking application or their website, using artificially intelligent virtual assistants that can be deployed in a multitude of different digital channels. The consumer perspective: we need more than a chatbot Chatbots are very effective and useful in many ways, but when an interaction gets complex or there's something of a regulated or more subjective nature, it becomes difficult for that chatbot to provide the kind of service consumers are looking for. The answer lies in continuous learning, which moves away from the decision tree structure of a traditional chatbot and into the realms of natural language processing. The new age of virtual assistant remembers interactions and then learns from them, has short-term and long-term conversation goals, and recognizes small talk. The result feels a lot more empathetic and allows for always-on and real-time consumer interaction. How businesses can develop their strategies not only for today, but going forward Bringing together digital capabilities, analytical insights, and data to understand the affordability of a consumer is critical. Using demographic and geographic data, businesses need those insights, regardless of whether we are in a growth environment, a benign environment, or as we're seeing right now, a recession of macro-economic downturn. Businesses choosing to invest now to address their operational and strategic challenges are not just responding to Covid-19, they are looking beyond and into strategic requirements of the future. Financial difficulty may be more acute right now, but it has always existed and always will, for various reasons.