Financial Services

Who said that direct mail was dead? Though consumers have flooded to digital channels since the onset of the pandemic, with 55% now having a higher expectation of their customer experience, traditional methods shouldn't be cast aside. On the other hand, sending printed mail without adapting to consumer demands may leave recipients disengaged and less likely to act. So, where does that leave marketers? How can businesses create a balance between traditional and digital credit marketing? Before diving into that discussion, it’s important to note that direct mail is still effective and when done right, can help businesses win the hearts and wallets of today’s consumers. According to the U.S. Postal Service’s (USPS) Certified Direct Mail Professional (CDMP) program, 79% of households say they read their daily mail, while 70% of recipients are curious to find out what’s in their mailbox. So, how can credit card marketers capitalize on these trends to generate higher response rates and returns from their direct mail campaigns? It’s simple – businesses must weave interactive elements and technology into their direct mail pieces to make them more effective and engaging. Here’s how credit card issuers are leveraging technology to level up their direct mail campaigns: QR codes QR codes, which allow consumers to read restaurant menus and make touchless payments with their mobile devices, have become a global sensation, with the number of interactions having grown 94% between 2018-2020. More recently, credit card marketers have included interactive QR codes into their direct mail pieces, allowing recipients to learn more about the offer, download their mobile app or quickly apply for a credit card. A few brands took it a step further by matching their QR codes with the colors of their logos to add more brand recognition and personalization. Voice Activated Call to Action (VACTA) According to Mintel, over 25% of U.S. adults own at least one smart speaker. To capitalize on this trend, many credit card issuers have included a Voice Activated Call to Action (VACTA) in their direct mail pieces. A VACTA allows recipients to respond to direct mail offers verbally by using their Amazon Alexa or Google Assistant device. Instead of reaching for their smartphones or laptops, consumers can call out to their smart speaker with the offer code. This low-effort, hands-free method is a quick and convenient way for consumers to engage with businesses as it enables them to respond to offers even when they are performing other tasks. Once their smart speaker receives the code, a link is then sent to the consumer’s phone so that they can examine the offer at any time. Giving consumers more flexibility enhances their experience and increases the chances of them responding to future offers. Additionally, including a VACTA in direct mail pieces allows marketers to manage, track and optimize their marketing campaigns in real-time. Because VACTAs make offers immediately redeemable, businesses can easily measure the performance and effectiveness of each direct mail piece. Informed Delivery emails What better way to build anticipation and excitement for direct mail offers than to give consumers a sneak peek of what’s to come? USPS’s Informed Delivery is a service that allows consumers to digitally preview their direct mail before it arrives in their physical mailbox. Until the physical mail piece is delivered, consumers can look at what the mailing might reveal or offer to them through email, an online dashboard or a mobile app. The best part? Informed Delivery emails meet today’s consumer expectations for convenient digital experiences as they are available to view them anytime, anywhere. Currently, one in five households has an Informed Delivery participant. What’s more, the average open rate for an Informed Delivery email is nearly 70%. By incorporating Informed Delivery into direct mail campaigns, businesses can generate additional impressions, improve customer engagement and drive more conversions. Doing direct mail, the right way Direct mail isn’t outdated, antique or ineffective – it has evolved and adapted to meet the expectations of today’s consumers. The use of QR codes, VACTA and USPS Informed Delivery, are just a few examples of how credit card marketers are leveraging digital enhancements to improve the success of their direct mail campaigns. While it’s clear that direct mail is still an effective way to reach consumers, businesses should not overlook the power of digital marketing. Expectations for seamless and connected digital experiences are higher than ever, making it crucial for businesses to develop strong digital marketing strategies. By engaging with consumers in the way that works best for them, with the right messages at the right time, you can drive more opportunities, reduce costs and deliver exceptional customer experiences. Learn more Download white paper

Experian’s newest Global Insights Report found that consumers are online 25% more today than they were just a year ago, highlighting the importance of the digital customer experience. To acquire customers and retain their loyalty, businesses need to focus on improving the online experience, preventing fraud, and managing credit risk.   This September, Experian surveyed 3,000 consumers and 900 businesses across all industries to explore business priorities and recent changes in consumer activities.   Many businesses and consumers are reportedly feeling more economically stable now than they were a year ago. As consumers resume spending the digital customer experience becomes even more paramount – requiring businesses to invest in scalable software solutions that will accurately assess credit risk and meet ever-changing needs and priorities.   Our research found that:   42% of consumers have increased concern for the safety of banking and shopping transactions Business adoption of advanced analytics has increased over last year, and adoption of artificial intelligence is up from 69% to 74% Consumers are more likely to share their personal data if it improves their experience, with 56% willing to share their contact information The top three consumer priorities continue to be security, privacy and convenience   Download the report to get all the latest insights into consumer desires and business behaviors as we move further through the digital evolution. Download the report

Credit scores play a massive role in a consumer’s financial life as they help determine an individual’s creditworthiness. While 62% of consumers are interested in improving their credit scores, a troublingly high percentage are unsure of where to start. What’s more, one in four Americans have no idea how credit scores are even determined. This knowledge gap presents an opportunity for financial institutions to help consumers increase their credit understanding and establish lasting relationships. Some of the benefits of providing credit education to consumers include: Consumer trust and loyalty Today’s consumers are looking for guidance and support on all things credit. Helping consumers navigate their credit reports, improve their credit scores and explore the impacts of various scenarios are all opportunities for financial institutions to meet this demand and foster loyalty. With the knowledge and tools needed to make confident and responsible financial decisions, consumers will continue to trust and look toward the same financial institutions for credit guidance as they navigate their financial journeys. Credit education is especially valuable to younger consumers. As rookies to the credit game, many Gen Zers may find credit to be mysterious, complex and difficult to grasp. Despite these feelings, Gen Zers have shown considerable interest in becoming financially literate. By continuously providing Gen Z consumers with reliable and accessible credit education early on, financial institutions can grow to become their valuable partner, educator and mentor for life. More cross-sell opportunities The more educational resources financial institutions provide their consumers, the more likely they are to pay their credit card bills on time, take out loans and mortgages they can meet and purchase within their buying power, making them prime candidates to approach for additional credit offerings. According to studies conducted by Visa Performance Solutions, consumers respond more to credit offers from institutions they currently have a relationship with than those they don’t. By providing credit education and relevant offers to existing customers, financial institutions can improve satisfaction while increasing their revenue. Enhances brand reputation While credit education allows financial institutions to strengthen their relationships with existing clients, it also gives them an opportunity to expand and acquire new ones. When consumers feel valued and cared for, they are more likely to recommend a business’s products and services to someone else. The more consumers see how much a financial institution invests in their customers’ financial well-being, the more likely they are to convert themselves. Ready to get started? Providing value to consumers is no longer just about offering great products and services; it’s about helping them understand the basics and importance of credit so that achieving their financial goals comes easily. To learn more about how credit education can help deepen customer relationships and drive business growth, visit our Experian Partners Solutions page. Learn more

It is no news that businesses are increasing their focus on advanced analytics and models. Whether looking to increase resources or focus on artificial intelligence (AI) and machine learning (ML), growth is the name of the game. But how do you maximize impact while minimizing risk? And how can you secure expertise and ROI when budgets are strapped?  Does your organization have the knowledge and talent in-house to remain competitive? No matter where you are on the analytics maturity curve, (outlined in detail below), your organization can benefit from making sure your machine learning models solution consists of: Regulatory documentation: Documentation for model and strategy governance is critical, especially as there is more conversation surrounding fair lending and how it relates to machine learning models. How does your organization ensure your models are explainable, well documented and making fair decisions? These are all questions you must be asking of your partners and solutions. Integrated services: For some service providers, “integrated,” is merely a marketing ploy, but it is essential that your solution truly integrates attributes, scores, models and decisions into one another. Not only does this serve as a “checks and balances” system of sorts, but it also is a primary driver for the speed of decisioning, which is crucial in today’s digital-first world. Deep expertise: Models are a major component for your decisioning, but ensuring those models are built and backed by experts is the one-two punch your strategies depend on. Make sure your services are managed by data scientists with extensive experience to take the best approach to solving your business problems. Usability: Does your solution close the loop? To future proof your processes, your solution must analyze the performance of attributes, scores and strategies. On top of that, your solution should make sure the items being built are useable and can be modified when needed. A one-and-done model does not suit the unique needs of your organization, so ensure your solution provides actionable analysis for continual refinement. Does your machine learning model solution check these boxes? Do you want to transform your existing system into a state-of-the-art AI platform? Learn more about how you can take your business challenges head-on by rapidly developing, deploying and monitoring sophisticated models and strategies to more accurately predict risk and achieve better outcomes. Learn more Access infographic   More information: What’s the analytics maturity curve? “Analytics” is the discovery, interpretation and communication of meaningful patterns in data; the connective tissue between data and effective decision-making within an organization. You can be along this journey for different decision points you’re making or product types, said Mark Soffietti, Director of Analytics Consulting at Experian, at our recent AI-driven analytics and strategy optimization webinar. Where you are on this curve often depends on your organization’s use of generic versus custom scores, the systems currently engaged to make those decisions and the sophistication of an organization’s models and/or strategies. Here’s a breakdown of each of the four stages: Descriptive Analytics – Descriptive analytics is the first step of the analytics maturity curve. These analytics answer the question “What is happening?” and typically revolve around some form of reporting. An example would be the information that your organization received 100 applications. Diagnostic Analytics – These analytics move from what happened to, “Why did it happen?” By digging into the 100 applications received, diagnostic analytics answer questions like “Who were we targeting?” and “How did those people come into our online portal/branch?” This information helps organizations be more strategic in their practices. Predictive Analytics – Models come into play at this stage as organizations try to predict what will happen. Based on the data set and an understanding of what the organization is doing, effort is put towards automating information to better solve business problems. Prescriptive Analytics – Optimization is key for prescriptive analytics. At this point in the maturity curve, there are multiple models and/or information that may be competing against one another. Prescriptive analytics will attempt to prescribe what an organization is doing and how it can drive more desired behaviors. For more information and to get personalized recommendations throughout your analytics journey, visit our website.

Chatbots, reduction of manual processes and explainability were all hot topics in a recent discussion between Madhurima Khandelwal, Vice President and Head of DataLabs at American Express®, and Eric Haller, Executive Vice President and head of Experian DataLabs. The importance of AI’s role in innovation in the financial services space was the focus of the recent video interview. In the interview, Khandelwal highlighted some of the latest in what American Express DataLabs is working on to continue to solve complex challenges by building tools driven by AI and Machine Learning: Natural language processing has come a long way in even the last few years. Khandelwal discussed how chat bots and conversational AI can automate the simple to complex to enhance customer experience. Document recognition and processing is another leading-edge innovation that is useful for extracting and analyzing information, which saves staff countless manual hours, Khandelwal said. Fairness and explainability are consistently brought to the forefront especially in financial services as regulators are looking at ways to prevent AI/ML from causing bias for the consumer. Khandelwal showcased how there is extreme rigor in each part of creating their models and how human oversight and training are primary drivers for how they stay on top of this. As for innovation advice, Khandelwal points out that it’s important to be aware that AI and innovation are not always interchangeable, and companies need to think through whether a problem needs to be solved through AI/ML models before charting ahead. Another major key to the equation is the data. In all use cases, the undercurrent of innovation in any form is dependent on the data being used. Learn more about this topic and what Harry Potter has to do with women in data science. Watch the Interview

It’s time for organizations to harness the power artificial intelligence (AI) can bring to digital identity management – quickly and accurately identifying consumers throughout the lifecycle. The rise in crime   The acceleration to digital platforms created a perfect storm of new opportunities for fraudsters. Synthetic identity fraud, stimulus-related fraud, and other types of cybercrime have seen huge upticks within the past year and a half. In fact, the Federal Trade Commission revealed that consumers reported over 360,000 complaints, resulting in more than $580 million in COVID-19-related fraud losses as of October 2021. To protect both themselves and consumers, businesses — especially lenders — will have to find and incorporate new strategies to identify customers, deter fraudsters and mitigate cybercrime. The benefits of AI for digital identity In our latest e-book, we explore the impacts of AI on organizations’ digital identity strategies, including: How changing consumer expectations increased the need for speed The challenges associated with both AI and digital identities The path forward for digital identity and AI How to develop the right strategy Building a solution It’s clear that current digital identity and fraud prevention tools are not enough to stop cybercriminals. To stay ahead of fraudsters and keep consumers happy, businesses need to look to new technologies — ones that can intake and compute large data sets in near-real time for better and faster decisions throughout the customer lifecycle. By using AI, businesses will enjoy a fast and consistent decisioning system that automatically routes questionable identities to additional authentication steps, allowing employees to focus on the riskiest cases and maximizing efficiency. Read our latest e-book to dive into the ways artificial intelligence and digital identity interact, and the benefits a clear identity strategy can have for the entire user journey. Download the e-book

Generation Z has money on their minds, and as their appetite for personal finance grows, financial institutions better be ready. Accounting for 40% of all U.S. consumers, Gen Z is comprised of digital natives with little to no memory of the world as it existed before smartphones, social media and the internet. Aside from growing up in a tech-saturated world, Gen Zers are also socially conscious and determined to take control of their financial futures. According to Credit Union Times, Gen Zers wield a purchasing power of more than $143 billion, which is projected to increase by more than 70% in the next five years. What do these insights mean for financial institutions? As the newest and soon-to-be largest cohort of consumers, Gen Zers represent an enormous opportunity for growth. While establishing a relationship with Gen Z now is key to creating lifelong customers, the same approaches used to capture previous generations may not be as effective with this younger cohort. To successfully reach and acquire Gen Z consumers, financial institutions must recognize their unique needs, preferences and experiences. Here are some key trends and preferences to consider: They live and breathe social media. According to Mintel, 99% of Gen Z adults and teens are active social media users. Despite this percentage of Gen Zers on social media, credit card issuers spent 94% of their media budget on direct mail from January 2019 to May 2021. This highlights the need for financial institutions to recognize social media as a powerful and necessary marketing vehicle. As a fast-growing consumer group with massive spending power, Gen Z makes for valuable customers, but are being missed by current marketing strategies. While direct mail is popular among millennials, financial institutions must recognize Gen Z’s preference for social media and pivot themselves to effectively reach them. By leveraging both social media and direct mail, financial institutions can dramatically increase their reach and acquire a wider pool of consumers. They want to be financially literate. Concepts like budgeting, investing and credit building can seem daunting to Gen Zers, especially if they lack the proper guidance and resources to get started. According to a NerdWallet survey, 41% of Gen Zers feel anxious about their personal finances, while 40% feel nervous and confused. To add onto their worries, older Gen Z members may have witnessed their parents struggle financially during the Great Recession or have seen millennials burdened with student loan debt. For fear of facing the same challenges as their predecessors, Gen Zers have shown great interest in taking control of their financial lives and becoming financially literate. In response to this desire for financial education, many banks and credit card issuers have taken an educational approach in their marketing by using infographics and ‘how-to’ guides to teach Gen Z about the basics of personal finance. Offering educational resources not only gives Gen Zers the confidence to make financial decisions, but it gives financial institutions the opportunity to build an early connection with this consumer group. Many banks and credit card issuers are also positioning themselves as companies Gen Zers can “grow with.” By not limiting their products to a specific life stage, these financial institutions seek to grow alongside the consumer so that they remain loyal customers even when their needs and lifestyles change. They care about what brands stand for. According to Mintel Trend Buydeology, Gen Z consumers are passionate about the causes close to their hearts and are more likely than other generation to pay a higher price for brands that support the causes they care about. With this in mind, financial institutions must prove they are authentic, socially responsible and committed to serving their communities. To resonate with Gen Z consumers and align with their preferences, financial institutions should educate themselves about social issues, take part in meaningful discussions both on and offline, and develop innovative strategies to drive real impact and change. Ready to win over Gen Z? Financial institutions have a massive opportunity to build lasting relationships with Gen Z consumers and having a pulse on what this fast-growing segment wants is a must. To learn more, check out our efforts to help marginalized and underserved communities or join our upcoming webinar on November 3, 2021. Learn more  Register for webinar

Shri Santhanam, Executive Vice President and General Manager of Global Analytics and Artificial Intelligence (AI) was recently featured on Lendit’s ‘Fintech One-on-One’ podcast. Shri and podcast creator, Peter Renton, discussed advanced analytics and AI’s role in lending and how Experian is helping lenders during what he calls the ‘digital lending revolution.’ Digital lending revolution “Over the last decade and a half, the notion of digital tools, decisioning, analytics and underwriting has come into play. The COVID-19 pandemic has dramatically accelerated that, and we’re seeing three big trends shake up the financial services industry,” said Shri. A shift in consumer expectations More than ever before, there is a deep focus on the customer experience. Five or six years ago, consumers and businesses were more accepting of waiting several days, sometimes even weeks, for loan approvals and decisions. However, the expectation has dramatically changed. In today’s digital world, consumers expect lending institutions to make quick approvals and real-time decisions. Fintechs being quick to act Fintech lenders have been disrupting the traditional financial services space in ways that positively impacts consumers. They’ve made it easier for borrowers to access credit – particularly those who have been traditional excluded or denied – and are quick to identify, develop and distribute market solutions. An increased adoption of machine learning, advanced analytics and AI Fintechs and financial institutions of all sizes are further exploring using AI-powered solutions to unlock growth and improve operational efficiencies. AI-driven strategies, which were once a ‘nice-to-have,’ have become a necessity. To help organizations reduce the resources and costs associated with building in-house models, Experian has launched Ascend Intelligence Services™, an analytics solution delivered on a modern tech AI platform. Ascend Intelligence Services helps streamline model builds and increases decision automation and approval rates. The future of lending: will all lending be done via AI, and what will it take to get there? According to Shri, lending in AI is inevitable. The biggest challenge the lending industry may face is trust in advanced analytics and AI decisioning to ensure lending is fair and transparent. Can AI-based lending help solve for biases in credit decisioning? We believe so, with the right frameworks and rules in place. Want to learn more? Explore our fintech solutions or click below. Listen to Podcast Learn more about Ascend Intelligence Services

Experian recently announced that it has made the IDC 2021 Fintech Rankings Top 100, highlighting the best global providers of financial technology. Experian is ranked number 11, rising 33 places from its 2020 ranking. IDC also refers to Experian as a ‘rising star.’ The robust data assets of Experian, combined with best-in-class modeling, decisioning and technology are powering new and innovative solutions. Experian has invested heavily in new technologies and infrastructures to deliver the freshest insights at the right time, to make the best decision. For example, Experian's Ascend Intelligence Services™ provides data, analytics, strategy, and performance monitoring, delivered on a modern-tech AI platform. With the investment in Ascend Intelligence Services, Experian has been able to streamline the delivery speed of analytical solutions to clients, improve decision automation rates and increase approval rates, in some cases by double digits. “Recognition in the top 20 of IDC FinTech Rankings demonstrates Experian’s commitment to the success of its financial clients,” said Marc DeCastro, research director at IDC Financial Insights. “We congratulate Experian for being ranked 11th in the 2021 IDC FinTech Rankings Top 100 list.” View the IDC Fintech Rankings list in its entirety here. Focus on Data, Advanced Analytics and Decisioning Creates Winning Strategy for Experian Experian’s focus on data, advanced analytics and decisioning has continued to gain recognition from various notable programs that acknowledge Fintech industry leaders and breakthrough technologies worldwide. Beyond the IDC Fintech Rankings Top 100, Experian won honors from the 2021 FinTech Breakthrough Awards, the 2021 CIO 100 Awards and was most recently shortlisted in the CeFPro Global Fintech Leaders List for 2022 in the categories of advanced analytics, anti-fraud, credit risk and core banking/back-end system technologies. “At Experian, we are committed to supporting the Fintech community. It’s great to see our continued efforts and investments driving positive impacts for our clients and their consumers. We will continue to invest and innovate to help our clients solve problems, create opportunities and support their customer-first missions,” said Jon Bailey, Vice President for Fintech at Experian. Learn more about how Experian can help advance your business goals with our Fintech Solutions and Ascend Intelligence Services. Explore fintech solutions Learn more about AIS

Financial inclusion is a challenge, that, while not new, has become ever more apparent over the last year. The inequities and inequalities in our society, exasperated by the COVID-19 pandemic, which disproportionately affected underserved populations, have amplified the challenge lenders and others in the financial services industry face in fostering financial inclusion. As a result, there is an increased focus and importance on diversity, equity and inclusion (DEI) and having the ability to assess creditworthiness of overlooked and ‘invisible’ consumers. In a recent webinar, we sat down with Sarah Davies, Head of Data Analytics at Nova Credit, and a panel of Experian experts including Wil Lewis, Chief Diversity, Equity and Inclusion Officer, Alpa Lally, Vice President of Product Management, and Greg Wright, Product Chief Officer, to explore the topic of DEI, what best practices exist to break down financial inclusion barriers and move financial access forward for all, and real-takeaway strategies and capabilities designed for fintechs and other financial institutions to leverage for lending deeper. Below are a few key perspectives from our speakers: What barriers to access are there for credit across different groups of people? [WL]: There are many barriers to financial inclusion, especially for underserved communities. The first of which is lack of awareness and lack of education about credit and how it impacts financial access – from obtaining loans, buying a first home, a new car and more. Not every American has someone in their life to teach and provide coaching on credit responsibility and how to be financially literate. [AL]: Historically, credit, wealth and health inequalities have all contributed to financial disparities, and as a result, have created an underrepresentation of marginalized communities in the current credit ecosystem. That’s compounded by today’s ecosystem where consumer underwriting favors those with established thick-file credit histories with minimal delinquencies, particularly in the last 24 months. So, all things being equal, additional points distributed to elevate scores are given to consumers that are maintaining low revolving debt. This poses credit barriers for those starting out new to credit, or even to immigrants coming into a new country who don’t have an established credit history.   What role could the credit industry play in healing the financial disparities created by the COVID-19 pandemic? [WL]: Our opportunity lies in meeting consumers where they are today. COVID-19 has spotlighted economic and social disparities in a way it hasn’t been done before. At the same time, it illustrated how the inability of some groups to access financial services requires meaningful solutions, quickly. Historically, organizations have been known to look at this in a traditional way: meaning “we are the organization, consumers come to us and we can tell you what you can and can’t do.” We need to shift our focus to how we can provide consumers with tools, technology and machine learning (ML) that are available to empower them. [SD]: One of the lessons we’ve learned from COVID, is that we need to be able to get to the marketplace fast in order to respond to the economic conditions. Fintechs have been very effective at this and it has shown through the approach they’ve taken towards immediacy in identifying, developing and distributing solutions. With consumers in a stressed position, it’s incumbent upon us, as the industry, to deliver consumer-centric options and opportunities in an efficient manner rather than having our consumers sit around waiting for them.   Are there solutions to help ensure we are lending deeper and serving thin-filed consumers? [AL]: At its core, data – not limited to only traditional credit data – that can be decisioned on, can help enrich financial inclusion. Alternative data, or expanded FCRA data, means that the data is displayable, disputable and correctable by the consumer. We recognize that traditional credit is still an effective way to assess a consumer’s credit worthiness. However, expanded FCRA data includes data points from rental, video streaming, all other industry sectors to help provide a 360 view of the consumer with additional insights - whether you are a thick-file consumer, thin-file consumer, or credit invisible. Through these different various data assets paired with advanced analytics and ML, we now have a mechanism to make sure consumers go from credit invisible to visible – and scorable. Leveraging Experian Boost and Experian Lift scores can do just that. [SD]: Expanded FCRA data is powerful and vital for helping the consumer. In addition, we are now in a place where the consumer can take on the responsibility and accountability for giving permission to include their data in the credit score. You’re putting the consumers in the driver seat, and with that, we are dissolving the psychological barriers that consumers may have had previously around their credit score being out of their control. As a player in the financial services space, we can put out as much data as we want, but it’s about engaging the consumer, sharing with them how it’s safe to share their data, and what the benefits of doing so are.   Are there tangible and intangible benefits of DEI that companies can realize when they have formal DEI programs in place? [WL]: Often times, when we think of lending, we talk about it from the standpoint of our business – ‘what are we doing for our customers, how are we helping consumers who are going to a institution for a loan.’ What we typically forget about is our own backyard. Every organization has employees who are at different points in their credit journey. How often do we talk directly to our employees and give them tools and details that may help them, their family member, or neighbor? As I think about DEI, it’s about involving folks inside your company to continue moving financial inclusion forward. As for an intangible benefit, when doing work in DEI and driving impact, you’re also reducing negative reputational risk. Reputable brands are invaluable, as you begin to make and show an impact, consumers begin to trust you. [AL]: Brand and reputation is huge in today’s world. We are starting to see a shift in consumers selecting certain institutions to work with, not just because of the services provided, but because it’s based on the brand and what they stand for. You as an institution are doing financial inclusion and you’re living up to it. You are truly embarking internally and externally on this initiative and it adds weights on the products and solutions that you sell. For consumers, that may be very important.   What does the future look like relative to financial inclusion? [WL]: It’s a world where all of us play a role in - no matter where you are in the organization. It’s all of our jobs and responsibility to talk about it to our fellow neighbor, consumer, and direct them to tools that will help them. [SD]: We no longer need to justify why financial inclusion is necessary. We’ve got all the data we need. Tools and mechanisms for organizations and consumers are almost universally available. The go-forward view requires all ‘players’ within the space to aggressively embrace these tools and data and start sharing and applying them across all markets and verticals. There’s no longer a reason not to be able to underwrite somebody with a thin file or marginal set of data. We have everything in place at this point. [AL]: It’s all our jobs. I think we have to put a lot of importance on our younger leaders and colleagues to carry our initiatives forward, so we are truly inclusive. We have just started taking the initial steps and we’ve made good progress, but we need to continue to make progress. In the future, I hope to see all that are younger take this forward and drive financial inclusion for all across the spectrum. Watch the full session to hear more of the engaging and timely discussion. Access the recording To learn more about how Experian is committed to advancing financial inclusion, please visit Experian’s Inclusion Forward resources page. For Fintechs looking to partner with Experian on marketplace lending solutions, explore our solutions here.

Artificial intelligence is here to stay, and businesses who are adopting the newest AI technology are ahead of the game. From targeting the right prospects to designing effective collections efforts, AI-driven strategies across the entire customer lifecycle are no longer a nice to have - they are a must.  Many organizations are late to the game of AI and/or are spending too much time and money designing and redesigning models and deploying them over weeks and months. By the time these models are deployed, markets may have already shifted again, forcing strategy teams to go back to the drawing board. And if these models and strategies are not being continuously monitored, they can become less effective over time and lead to missed opportunities and lost revenue. By implementing artificial intelligence in predictive modeling and strategy optimization, financial institutions and lenders can design and deploy their decisioning strategies faster than ever before and make incremental changes on the fly to adapt to evolving market trends.  While most organizations say they want to incorporate artificial intelligence and machine learning into their business strategy, many do not know where to start. Targeting, portfolio management, and collections are some of the top use cases for AI/ML strategy initiatives.  Targeting  One way businesses are using AI-driven modeling is for targeting the audiences that will most likely meet their credit criteria and respond to their offers. Financial institutions need to have the right data to inform a decisioning strategy that recognizes credit criteria, can respond immediately when prospects meet that criteria and can be adjusted quickly when those factors change. AI-driven response models and optimized decision strategies perform these functions seamlessly, giving businesses the advantage of targeting the right prospects at the right time.  Credit portfolio management  Risk models optimized with artificial intelligence and machine learning, built on comprehensive data sets, are being used by credit lenders to acquire new revenue and set appropriate balance limits. Strategies built around AI-driven risk models enable businesses to send new offers and cross-sell offers to current customers, while appropriately setting initial credit limits and managing limits over time for increased wallet share and reduced risk.   Collections  AI- and ML-driven analytics models are also optimizing collections strategies to improve recovery rates. Employing AI-powered balance and response models, credit lenders can make smarter collections decisions based on the most predictive and accurate information available.   For lending businesses who are already tight on resources, or those whose IT teams cannot meet the demand of quickly adapting to ever-changing market conditions and decisioning criteria, a managed service for AI-powered models and strategy design might be the best option. Managed service teams work closely with businesses to determine specific use cases, develop models to meet those use cases, deploy models quickly, and monitor models to ensure they keep producing and predicting optimally.  Experian offers Ascend Intelligence Services, the only managed service solution to provide data, analytics, strategy and performance monitoring. Experian’s data scientists provide expert guidance as they collaborate with businesses in developing and deploying models and strategies around targeting, acquisitions, limit-setting, and collections. Once those strategies are deployed, Experian continually monitors model health to ensure scores are still predictive and presents challenger models so credit lenders can always have the most accurate decisioning models for their business. Ascend Intelligence Services provides an online dashboard for easy visibility, documentation for regulatory compliance, and cloud capabilities to deliver scores and decisions in real-time.  Experian’s Ascend Intelligence Services makes getting into the AI game easy. Start realizing the power of data and AI-driven analytics models by using our ROI calculator below: initIframe('611ea3adb1ab9f5149cf694e'); For more information about Ascend Intelligence Services, visit our webpage or join our upcoming webinar on October 21, 2021.  Learn more Register for webinar

Despite an unprecedented 18 months since the pandemic was in full force and many Americans were sent home, financial wellness continues to be on the up and up. Consumers continue to manage credit well and the average credit score climbed seven points since 2020 to 695, the highest point in more than 13 years. In Experian’s 12th annual State of Credit report, the headlines are hopeful regarding how Americans are managing personal finances in the face of the pandemic. The report provides a comprehensive look at the credit performance of consumers across America by highlighting consumer credit scores and borrowing behaviors. This year’s report features data from 2019 pre-pandemic, the 2020 pandemic year, and the start of 2021. “The findings from this year’s report show something I’ve always believed: Americans are resilient, for the most part they make smart decisions in the face of adversity and they are agile in adjusting their financial habits when the environment or circumstances change,” said Alex Lintner, President, Experian Consumer Information Services. Highlights of Experian’s State of Credit report: 2021 State of Credit Report 2019 2020 2021 Average VantageScore® credit score [1] 682 688 695 Median VantageScore® credit score 687 697 707 Average number of credit cards 3.0 3.0 3.0 Average credit card balance $6,494 $5,897 $5,525 Average revolving utilization rate 30% 26% 25% Average number of retail credit cards 2.50 2.42 2.33 Average retail credit card balance $1,930 $2,044 $1,887 Average nonmortgage debt $25,057 $25,483 $25,112 Average mortgage debt $210,263 $215,655 $229,242 Average auto loan or lease $19,034 $19,462 $20,505 Average 30–59 days past due delinquency rates 3.8% 2.4% 2.3% Average 60–89 days past due delinquency rates 1.9% 1.3% 1.0% Average 90–180 days past due delinquency rates 6.6% 3.8% 2.5% We asked Joseph Mayans, Principal Economist at Advantage Economics, LLC, for his reactions to the findings: “The State of Credit Report captures the three central themes of the pandemic. First, it shows the overwhelming success of the fiscal support packages. By far, the most striking example of this is the broad based and significant decline in delinquencies during a time when millions of people were out of work. Second, the report showcases the resiliency of American households. People used their stimulus dollars to stay on top of their bills and pay down debt, which boosted average credit scores across all generations. And third, it highlights the unique behavioral shifts brought on by the pandemic. We can see these changes in the rise of housing and auto debt as people bought larger homes and sought to drive rather than ride public transportation.” Generational Trends As indicated in the findings, consumers across all generations except Gen Z saw decreased utilization rates and decreased credit card balances year over year. Consumers are also missing fewer payments with notable improvements seen among the youngest consumers. Mortgage debt was up across every generation, which may correlate with the record low interest rates on mortgages, refinances and moves. According to the CBRE, “the pandemic accelerated several long-standing American migration patterns” as evidenced by more than 15.9 million people filing change-of-address requests with the United States Postal Service. Compared with 2019, 2020 change-of-address requests show a 4% increase in total movers, 2% increase in permanent movers and 27% increase in temporary movers, according to a study by MyMove. Mayans also made note of the mortgage trends. “It’s becoming clearer that millennials are stepping into the homebuying phase in a big way. Once thought to be the generation of apartments and urban revival, many older millennials are now buying homes and moving to the suburbs much like their parents before them,” Mayans said. “This will have significant implications for the post-pandemic world, especially as work from home becomes more prevalent.” State Trends The states with the highest and lowest average credit score remained unchanged from last year with the highest average score of 726 held by Minnesota and an average score of 666 held by Mississippi. New Jersey had the highest number of credit cards and retail cards at 3.37 and 2.54 respectively, and Alaska had the highest credit card debt at $7,089 (U.S. average is $5,525) and Texas had the highest retail debt at $2,248 (U.S. average is $1,888). What Lies Ahead Some have argued that the past year of the pandemic and quarantine forced a lot of time for reflection. The continued positive trends of consumer behavior seem to indicate some of that effort was put toward better financial health practices. That said, like any sourdough bread recipe or DIY home glow-up, there’s always more to learn and opportunities to seize when it comes to financial health. “We are committed to working with lenders and the industry to help consumers gain access to credit, driving broader financial inclusion, while also teaching consumers how to responsibly build and use credit responsibly,” Lintner said. In addition to the free weekly credit report at AnnualCreditReport.com, Experian also offers consumers free access to their credit report and ongoing credit monitoring at Experian.com. Additional credit education resources and tools Join Experian’s #creditchat hosted by @Experian on Twitter with financial experts every Wednesday at 3 p.m. Eastern time. Bilingual and Spanish speakers are also invited to join Experian’s monthly #ChatdeCredito hosted on Twitter at 3 p.m. Eastern time beginning September 16. Visit the Ask Experian blog for answers to common questions, advice and education about credit. Add positive telecom, utility and streaming service payments to your Experian credit report for an opportunity to improve your credit scores by visiting experian.com/boost[2] For additional resources, visit https://www.experian.com/consumereducation To see all the findings, download the 2021 State of Credit Report.   Download the full report [1] VantageScore® is a registered trademark of VantageScore Solutions, LLC. VantageScore® credit score range is 300 to 850. [2] Results may vary. See Experian.com for details

The collections landscape is changing as a result of new and upcoming legislation and increased expectations from consumers. Because of this, businesses are looking to create more effective, consumer-focused collections processes while remaining within regulatory guidelines. Our latest tip sheet has insights that can help businesses and agencies optimize their collections efforts and remain compliant, including:   Start with the best data Keep pace with changing regulations Focus on agility Pick the right partner Download the tip sheet to learn how to maximize your collections efforts while reducing costs, avoiding reputational damage and fines, and improving overall engagement. Download tip sheet

The Telephone Consumer Protection Act (TCPA), which regulates telemarketing calls, autodialed calls, prerecorded calls, text messages and unsolicited faxes, was originally passed in 1991. Since that time, there have been many rulings and updates that impact businesses’ ability to maintain TCPA compliance.   Recent TCPA Changes   On December 30, 2020, the Federal Communications Commission (FCC) updated a number of TCPA exemptions, adding call limits and opt-out requirements, and codifying exemptions for calls to residential lines.   These changes, along with other industry changes, have added additional layers of complication to keeping compliant while still optimizing operations and the consumer experience.   Maintaining TCPA Compliance   Businesses who do not maintain TCPA compliance could be subject to a lawsuit and paying out damages, and potential hits to their reputation.   With the right partner in place, businesses can maintain data hygiene and accuracy to increase right-party contact (and reduce wrong-party contact) to keep collections streamlined and improve the customer experience.   Using the right technology in place, it’s easier to:   Monitor and verify consumer contact information for a better customer experience while remaining compliant. Receive and monitor daily notifications about changes in phone ownership information. Maintain compliance with Regulation F by leveraging a complete and accurate database of consumer information.   When searching for a partner, be sure to look for one who offers data scrubbing, phone type indicators, phone number scoring, phone number identity verification, ownership change monitoring, and who has direct access to phone carriers.   To learn more about how the right technology can help your business maintain TCPA compliance, visit us or request a call. Learn more

Over the last year and a half, strong trends emerged in how businesses and consumers interact online - specifically when validating identities and preventing fraud. We initially explored these trends at a global level, and now we've explored U.S.-specific insights into online security, the customer experience, and digital activities and operations. Download the North America findings report to learn more about business and consumer fraud and identity trends impacting the way we live, work, and interact. Review your fraud strategy