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Divorce often affects financial health negatively. It’s expensive – often causing nearly $20,000 in losses. A recent Experian survey found: 34% say their divorce put them in financial ruin. 19% percent say things were so bad they filed for bankruptcy. 39% report they’ll never marry again because of the financial loss of a divorce. Lenders can provide support to loyal customers by providing personalized credit education and create a new revenue stream for your company. Learn more>
A recent Experian study found that the amount of time it’s taking for automotive loans opened in Q4 2015 to become delinquent is actually similar to the pace in 2008. When looking at the 60+ DPD rate across all risk levels, the delinquency rate for accounts opened in Q4 2015 reached 0.50% within 6 months, compared with 0.51% for accounts opened in Q4 2008. Lenders can design more effective strategies by using analytics to gain insight into the latest trends and target the right customers. Video: Auto Acquisition Strategies>
Reactivation campaigns make economic sense. They build on a brand’s previous investments, targeting customers who already are aware of and previously have engaged with your brand. Use these 4 steps to build a successful reactivation framework: 1. Analyze subscriber data to identify reactivation segments to target. 2. Identify subscriber activity to divide customers into at least 3 unique segments. 3. Develop messaging strategies for each segment. 4. Integrate or suppress inactive subscribers based on whether they re-engage. Reactivation campaigns can deliver significant incremental revenue and position inactive subscribers for further engagement in future campaigns. Download report>
Experian's fraud and identity platform, CrossCore™ won New Security Product or Service and Security Product Management / Development Team of the Year awards at the 13th Annual Info Security Products Guide’s 2017 Global Excellence Awards®.
A recent analysis revealed a 9-point negative shift in the average VantageScore® credit score for personal loan originations from Q3 to Q4 of 2016. Additional insights into the personal loan market include: 67% of those who opened a personal installment loan had a revolving trade with a balance. 5% of consumers who close a personal loan open another within a few months of the original loan closure. 68% of consumers who open a new personal loan shortly after closing another one do so with the same company. Lenders must dig deeper to keep their loan volumes up in today’s competitive marketplace. Using a propensity score and attributes, as well as tools to learn more about ability-to-pay metrics and offer alignment, can improve your organization’s marketing and retention strategies. Learn more>
There has been a lot of discussion around the auto loan market regarding delinquency rates in the past year. It is a topic Experian is asked about frequently from clients in regard to what particular economic market behaviors mean for the overall consumer lending. To understand this issue more clearly, I ran a deeper dive on the data from our Q3 Experian-Oliver Wyman Market Intelligence report. There are some interesting, and perhaps concerning, trends in the data for automotive loans and leases. Want Insights on the latest consumer credit trends? Register for our 2016 year-end review webinar. Register now Auto loan delinquency rates are at their highest mark since 2008 The findings indicate that the performance of the most recent loans opened from Q4 2015 are now performing as poorly as the loans from the credit crisis back in 2008. In fact, you have to go back to 2008, and in some cases, 2007, to see loan default rates as poorly as the Q4 2015 auto loans originated in the last year. Below we have the auto loan vintage performance for loans originated in Q4 of the last 8 years — going back to 2008. The lines on the chart each represent 60 days late or more (60+) delinquency rates over specific time period grades. For these charts, I analyzed the first three, six, and nine months from the loan origination date. As you can see, the rates of delinquency have steadily increased in recent years, with the increase in the Q4 2015 loans opened equaling or even surpassing 2008 levels. The above chart reflects all credit grades, so one might think that this change is a result of the change in the credit origination mix. By digging a little deeper into the data, we can control for the VantageScore® credit score at the loan opening, or origination date, and review performance by looking at two different score segments separately. Is there concern for Superprime and Prime consumers auto loans? In the chart immediately below, the same analysis as above has been conducted, but only for trades originated by Superprime and Prime consumers at the time of origination. You can see that although the trend is not as pronounced as when all grades are considered, even these tiers of consumers are showing significant increases in their 60+ days past due (DPD) rates in recent vintages. Separately, looking at the Subprime and Deep Subprime segments, you can really see the dramatic changes that have occurred in the performance of recent auto vintages. Holding score segments constant, the data indicates a rate of credit deterioration in the Subprime and Deep Subprime segments that we have not observed since at least 2008 — back to when we started tracking this data. What’s concerning here is not only the absolute values of the vintage delinquencies but also the trend, which is moving upward for all three time periods. Where does the risk fall? Now that we see the evidence of the deterioration of credit performance across the credit spectrum, one might ask – who is bearing the risk in these recent vintages? Taking a closer look at the chart below, you can see the significant increase in the volumes of loans across lender type, but particularly interesting to me is the increase in 2016 for the Captive Auto lenders and Credit Unions, who are hitting highs in their lending volumes in recent quarters. If the above trend holds and the trajectory continues, this suggests exposure issues for those lenders with higher volumes in recent months. What does this mean for your business? Speak to Experian's global consulting practice to learn more. Learn more Just to be thorough, let's continue and look at the relative amounts of loans going to the different score segments by each of the lender types. Comparing the lender type and the score segments (below) reveals that finance lenders have a greater than average exposure to the Subprime and Deep Subprime segments. To summarize, although auto lending has recently been viewed as a segment where loan performance is good, relative to historical levels, I believe, the above data signals a striking change in that perspective. Recent loan performance has weakened to a point where comparing the 2008 vintage with 2015 vintage, one might not be able to distinguish between the two. // <![CDATA[ var elems={'winWidth':window.innerWidth,'winTol':600,'rotTol':800,'hgtTol':1500}, updRes=function(){var xAxislabelSize=function(){if(elems.winWidth<elems.winTol){return'12px'}else{return'14px'}},xAxislabelRotation=function(){if(elems.winWidth<elems.rotTol){return-90}else{return 0}},seriesLabelSize=function(){if(elems.winWidth<elems.winTol){return'12px'}else{return'16px'}},legenLabelSize=function(){if(elems.winWidth<elems.winTol){return'12px'}else{return'16px'}},chartHeight=function(){if(elems.winWidth<elems.rotTol){return 600}else{return 400}},labelInside=function(){if(elems.winWidth<elems.rotTol){return false}else{return true}},chartStack=function(){if(elems.winWidth<elems.rotTol){return null}else{return'normal'}};this.sourceRef=function(){return['Source: Experian.com']};this.seriesColor=function(){return['#982881','#0d6eb6','#26478D','#d72b80','#575756','#b02383']};this.chartFontFamily=function(){return'"Roboto",Helvetica,Arial,sans-serif'};this.xAxislabelSize=function(){return xAxislabelSize()};this.xAxislabelOverflow=function(){return'none'};this.xAxislabelRotation=function(){return xAxislabelRotation()};this.seriesLabelSize=function(){return seriesLabelSize()};this.legenLabelSize=function(){return legenLabelSize()};this.chartHeight=function(){return chartHeight()};this.labelInside=function(){return labelInside()};this.chartStack=function(){return chartStack()}}(), updY=function(chart){var points=chart.series[0].points;for(var i=0;i elems.rotTol){if(thisWidth<20){var y=points[i].dataLabel.y;y-=10;points[i].dataLabel.css({color:'#575756'}).attr({y:y-thisWidth})}}}},updX=function(chart){var points=chart.series[0].points;for(var i=0;i elems.rotTol){if(thisWidth
When it comes to buying a vehicle, we found that consumers who owned a Certified Pre-Owned (CPO) used vehicle are most loyal to the original vehicle manufacturer — to the tune of 75% — when purchasing another CPO used vehicle. Consumer buying patterns show that the loyalty rate to the manufacturer is also high when: Moving from a new vehicle to another new vehicle (60.9%). Switching from a CPO used vehicle to a new vehicle (54.1%). By understanding loyalty rates and other key market trends, manufacturers, dealers and resellers can make smarter decisions that create more opportunities for themselves and in-market consumers. More insights>
The consumer economy has evolved dramatically over the past few years — in large part due to technology and access to large amounts of data. Credit data, especially, can be a powerful asset for financial institutions in this new environment. More than 88 million U.S. consumers use their smartphone to do some form of banking. 67% of consumers made purchases across multiple channels in the last six months. With the help of data scientists, financial institutions can build models that crunch huge volumes of data and append their own customer data to drive portfolio management, customer acquisition and collections decisions across digital and mobile channels. Learn more>
Big changes for the new year 2017 is expected to bring some big changes. But what do those changes mean for the financial services space? Here are 3 trends and twists Experian expects to occur over the next 12 months: Trump and the Republican-controlled Congress will move forward with a deregulatory agenda. Recognizing and scoring more previously invisible consumers through alternative data sources will be emphasized. Personalized credit offers delivered via multiple digital channels in a sequenced, trackable manner. What are your predictions for 2017? Only time will tell, but we’re certain that regulations and advancements in digital will be huuuge. >>More 2017 trends
Experian integrated Cloudera Enterprise onto its cloud environment so clients can make innovative decisions in milliseconds with data as the core technology.
Internet-connected devices provide endless possibilities, but they rely on technology and collected data to deliver on their promises. This can compromise your network security. Follow these tips to enjoy the conveniences provided by Internet of Things devices while keeping your network safe. Look for devices that use end-to-end encryption. Change default passwords before connecting devices to your network. Enable two-factor authentication, when available. Leverage all security options, such as passwords, encryption, firewalls and firmware. The Internet of Things is only as strong as its weakest link. That's why it’s so important to understand and treat each connected device as part of a broader network. More security tips
The holidays can be a stressful time for consumers — and an important time for lenders to anticipate the aftermath of big credit card spending. According to our recent study with Edelman Intelligence: 56% of respondents said holiday shopping puts a strain on their finances. 43% said the stress of holiday shopping makes it difficult to enjoy the season. With the holiday shopping season over, those hefty credit card statements are coming soon. Now is the time for lenders to prepare for the January and February consolidations. Want to know more?
Using digital technology like a big bank How was your holiday? Are the chargebacks rolling in yet? It’s no secret - digital technology like mobile device usage has increased significantly over the years, making it a breeding ground for fraudsters. As credit unions continue to grow their membership, their fraud security treatments need to grow as well. Bigger banks are constantly updating their fraud tools and strategies to fight against cybercrime and, therefore, fraudsters are setting their eyes on credit unions. Even as I write this, fraudsters are searching and targeting credit unions that don’t have their mobile channel secured. They attempt to capitalize on any weakness or opportunity: Registering stolen cards to mobile wallets Taking over an account via mobile banking apps Using a retailers’ mobile app to make fraudulent payments Disabling the SIM card in the victim’s phone and diverting the one-time password sent through text message to their own phones These are clever ways to commit fraud. But credit unions are becoming wise to these new threats and are serious about protecting their members. They are incorporating device intelligence with a solid identity authentication service. This multi-layered approach is essential to securing mobile channels, and protecting your Credit Union from chargebacks. To learn more about our fraud solutions, click here.
As we kick off the new year, let’s take a look at some interesting things we learned about data quality in 2016. Our latest data quality report found some concerning statistics about companies and their data quality: 56% of organizations report losing sales opportunities due to bad data. 79% say data clearly ties directly to business objectives, but only 2% trust their data completely. 83% report that poor data quality impacts their business initiatives. Data is at the heart of your organization, and the quality of that data underpins the success of many of your business initiatives. Implementing a successful data quality program, therefore, is imperative to your organization’s future. Building a business case for data quality
Fraud and cybersecurity are two of the biggest risks challenging organizations and the economy today. Fraud has become its own industry, to the tune of $500 billion in estimated losses annually. To strengthen your fraud risk strategies, you need: A multilayered authentication and risk-based approach to prevent fraud. A comprehensive approach to identity with true customer intelligence. To avoid silos and recognize the value of combining your solutions into one platform. The rapid growth of fraud-related activity only reinforces the need for aggressive fraud prevention strategies and the adoption of new technology to prepare for the latest emerging cybersecurity threats. Want to know more?