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Driver of success: Mitigate auto lending risk A culture of learning is a key driver of success. Does your risk culture continue to adapt? There are many issues within auto lending that are unique to other financial services ecosystems: the direct versus indirect relationship, insights of the asset influencing the risk insights, new versus used vehicle transactions influencing risk and terms, and more. However, there is one universal standard common to all financial services cultures — change.. Change is constant, and an institution’s marketing and risk organizations need to be constantly learning to stay abreast of dealer, consumer, competitor and regulatory issues. No one has said it better than Jack Welch: “An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage.” This statement was quickly followed by a command: “Change before you have to.” So the challenge for the portfolio manager is to ensure there are the system features, data sources, management reporting structures, data access features, analytic skills, broad management team skill sets, and employee feedback and incentive plans to drive the organization to a constant state of renewal. The challenge for many smaller and midsize lenders is to determine what systems and skills need to be in-house and what tasks are better left for a third party to handle. For consumer-level data, vehicle history and valuation data, and fraud alert flags, it seems reasonable to leverage solutions from established third parties: credit reporting agencies. After that, the solutions to the many other needs may be more specific to the lender legacy skill set and other support relationships: Are there strong in-house data-management and analytic skills? There is a significant difference between management information and data analysis driving policy and portfolio performance forecasts. Does the internal team have both? Is the current operating platform(s) feature-rich and able to be managed and enhanced by internal resources within tight time frames? Is the management team broadly experienced and constantly updating best-practice insights? Is the in-house team frequently engaged with the regulatory community to stay abreast of new mandates and initiatives? There is a solution. Experian® offers the data, software, solutions, management information, analytic solutions and consulting services to tie everything together for a lender-specific best configuration. We look forward to hearing from you to discuss how we can help.

Financing my first car was a bittersweet feeling. I was thrilled at the thought of purchasing a new vehicle, yet I was dreading haggling the price with the dealer. As a millennial, I feared the rising prices for new cars, and knew that I needed to find a way to make the vehicle more affordable. That said, I decided to look at used cars. Clearly, I’m not the only car shopper going through this experience. Many consumers are exploring new options to keep their monthly payments down, whether it’s extending the length of their loan, or turning to leases. Sometimes it’s both. According to Experian Automotive’s Q2 2015 State of the Automotive Finance Market report, the average loan amount for a new vehicle reached $28,524, while the average loan amount for a used vehicle hit $18,671, a second quarter high and an all-time high, respectively. Subsequently, the increasing loan amounts also caused the average monthly payment for new ($483) and used ($361) vehicles to increase. Interestingly, the $122 difference in average monthly payment was also a second quarter high, furthering the need to make car payments affordable. As such, consumers continued to take out leases. During the second quarter, leasing accounted for 26.9 percent of all new vehicle transactions, reaching an all-time high. While leasing continues to be a popular option among car shoppers to keep monthly payments down, we’re beginning to see these consumers take it a step further. Sure 36-month term leases are still the most popular, however the percentage of leases extending past the 36 months into the 37- to 48-month range has increased by 18 percent. Furthermore, the average lease payment dropped $13 from a year ago, reaching $394. Findings from the report also showed that consumers continued to lengthen their loan terms, especially for used vehicles. The percentage of used vehicles financed for 73- to 84-months increased by 14.8 percent from Q2 2014 to reach 16.1 percent – the highest percentage of record. New vehicles financed for the same term length climbed 19.7 percent from the previous year to reach 28.8 percent. If the trend continues, we can only expect vehicles to become more expensive and harder to keep within budget. That said there are ways to keep monthly payments within reason. Just as I did, consumers will need to explore the different options available and work with the financing tool that best meets their needs. If they can do that, it will just be the sweet feeling of purchasing a car.

As Big Data becomes the norm in the credit industry and others, the seemingly non-stop efforts to accumulate more and more data leads me to ask the question - when is Big Data too much data?  The answer doesn’t lie in the quantity of data itself, but rather in the application of it – Big Data is too much data when you can’t use it to make better decisions. So what do I mean by a better decision? From any number of perspectives, the answer to that question will vary. From the viewpoint of a marketer, maybe that decision is about whether new data will result in better response rates through improved segmentation. From a lender perspective, that decision might be about whether a borrower will repay a loan or the right interest rate to charge the borrower. That is one the points of the hype around Big Data – it is helping companies and individuals in all sorts of situations make better decisions – but regardless of the application, it appears that the science of Big Data must not just be based on an assumption that more data will always lead to better decisions, but that more data can lead to better decisions – if it is also the “right data”. Then how does one know when another new data source is helping? It’s not obvious that additional data won’t help make a better decision. It takes an expert to understand not only the data employed, but ultimately the use of the data in the decision-making process. It takes expertise that is not found just anywhere. At Experian, one of our core capabilities is based on the ability to distinguish between data that is predictive and can help our clients make better decisions, and that which is noise and is not helpful to our clients.  Our scores and models, whether they be used for prospecting new customers, measuring risk in offering new credit, or determining how to best collect on an outstanding receivable, are all designed to optimize the decision making process. Learn more about our big data capabilities

Protecting your customer The impact of fraud on the customer relationship Sadly fraudsters seem to always be one-step ahead of fraud-prevention strategies, causing organizations to play catch-up to the criminals. And as information security tightens and technologies evolve, so does the industrious nature of organized identity and online fraud. It should be no surprise then that fraud risk mitigation and management will continue to be an ongoing issue for organizations. But what continues to drive investment in identity management and online risk tools is the arms race across organizations to deliver superior customer experience and functionality. While the monetary cost of fraud losses can be high and rather detrimental, the impact of lost customers and overall reputational decline due to poor customer experiences can be higher. The key is finding the right balance between identifying and segmenting likely fraudulent customers across the vast majority of legitimate customers and transactions. I want to share a recent interactive eBook we launched which outlines the authentication and identity management balance with a focus on the consumer. We highlight current trends and what organizations should be thinking about and doing to protect their business, institution, or agency and customers. I hope you enjoy this look at the impact of fraud on the customer relationship.    

Our clients are facing three primary issues when it comes to regulatory compliance: time resources knowledge Many are facing Matters Requiring Attention (MRA) and Matters Requiring Immediate Attention (MRIA) and don’t have the staff or the capacity to complete all of the work themselves within tight deadlines. They also want their limited resources to work on internal, proprietary initiatives to grow the business and maximize profit and return. These activities cannot be outsourced as easily as regulatory and compliance work, which is relatively easy to parse out and give to an external third party. Quite often, a level of independent oversight and effective challenge is also a requirement that can easily be solved through the use of an objective, external third party. A lot of the regulations are still relatively new, and there are still many issues and knowledge gaps our clients are facing. They have insight into their own organization only and quite often aren’t aware of or able to leverage industry best practice without the view of an external third party with broader industry knowledge and experience. In terms of best practice, it all really starts with the data, leading to the attributes used in models to create sound risk management strategies, manage capital adequacy, and ensure the safety and soundness of the overall U.S. and global financial system. The integrity of data reporting, dispute management and compliance with all applicable regulatory requirements need to be an enterprise-wide effort. In the area of attribute governance, there are three primary areas of focus: Attribution creation — definitions; logic, code and accuracy; and how to reduce implementation timelines. Monitoring and maintenance — looking for shifts in attributes and their potential impact and facilitating updates to attributes based upon changes in reporting and upgrades to newer versions of attributes as the credit environment changes, such as during the most recent mortgage crisis, where loan modification and associated attributes were created and took on increased importance. And last but definitely not least, documentation — We cannot say enough about the importance of documentation, especially to regulators. Documentation ensures accuracy and consistent application and must record all general conventions and limitations. For model risk management and governance, focus areas should follow the expanded Office of the Comptroller of the Currency (OCC) Guidance from Bulletin 2011-12. This guidance includes expanded requirements for model validations including not just standard back testing, but also benchmarking, effective challenge, sensitivity analysis and stress testing. It also expands the guidance beyond just validation to model development and usage, implementation, governance and controls. In response to these OCC expanded guidance requirements, one of our clients was seeking an industry expert to serve as an independent third party to 1) conduct industry best practice and benchmarking in areas of reject inference methodologies and 2) validate production models used for risk underwriting, line assignment, pricing and targeting. After a full review and assessment, we provided the client with a clear road map to improve the process to conduct reject inference through knowledge transfer and best practices. We established a best-in-class approach to annual model validations on a model inventory consisting of retail, small business and wealth segment portfolios. We also delivered expedited results that also identified alternative methods of validation that assess variability in point estimates, as well as comply with OCC requirements for precision, ranking and population measurement statistics. Through our work, the client was able to leverage Experian to establish a global approach to reject inference methodologies, to augment existing staffing and to offshore resources in a cost-effective manner. There are three primary areas of loss forecasting, stress testing and capital adequacy planning: International —  Basel accord National — U.S. Dodd-Frank Act Stress Testing (DFAST), including Comprehensive Capital Analysis and Review (CCAR) supervisory review Internal — Allowance for Loan and Lease Losses requirements Although there are similarities, there are also important differences among each of these three requirements and practices. For these reasons, most financial institutions in the United States are still providing and managing them separately. This obviously creates a strain on internal staff and resources. One of our clients had an initial compliance strategy in place but did not have the sufficient in-house staff and resources required to create, document and review its modeling and stress testing to satisfy regulators and internal auditors. The organization needed a consultant that could work closely with its in-house team to support sophisticated models that were tailored to meet its specific compliance obligations. We worked closely with the client’s team to provide extensive consulting support for a complex set of loss-forecasting models and other tools, applying industry best practices to fully document the models. Throughout the process, our consulting team discovered and identified content gaps to help ensure that all documentation was complete. We also provided ad hoc analytics to support the client’s model development effort and strategic and tactical guidance on stress testing model development for compliance. This enabled the client to develop primary and challenge models for DFAST’s CCAR requirements, as well as internal stress scenarios. It also provided the client with the following tangible business benefits: balance compliance with maximum profitability and revenue; provided knowledge sharing and best practices to help empower client employees; helped refine models based on feedback from internal and external governance organizations; supported models with academic research to help align the correct model to the correct processes; and provided assistance with model implementation and application. Click here for a recent video I did on how capital-adequacy positions are becoming crucial in analyst recommendations.

Increased volume of fraud attempts during back to school shopping season Back to school shopping season will be the first time many consumers' use their chip-enabled credit cards and stores' new card readers. With the average K-12 family spending $630.36 per child in back to school shopping, and more than 1/3 shopping online, according to the National Retail Federation - is your fraud strategy prepared to handle the increased volume? And are you using a dynamic knowledge based authentication (KBA) solution that incorporates a wide variety of questions categories as part of your multi-faceted risk based authentication approach to fraud account management? Binary verification, or risk segmentation based on a single pass/fail decision is like trying to stay dry in a summer rain storm by wearing a coat. It’s far more effective to wear rubber boots and a use an umbrella, in addition to wearing a rain coat. Binary verification can occur based on evaluating identity elements with two outcomes –pass or fail – which could leave you susceptible to a crafty fraudster. When we recommend a risk based authentication approach, we take a more holistic view of a consumers risk profile. We advocate using analytics and weighting many factors, including identity elements, device intelligence and a robust knowledge-based authentication solution that work in concert to provide overall risk based decision.  After all, the end-goal is to enable the good consumers to continue forward based, while preventing the fraudster from compromising your customer’s identity and infiltrating you’re your business.

According to the latest Experian-Oliver Wyman Market Intelligence Report, mortgage originations for Q2 2015 increased 56% over Q2 2014 — $547 billion versus $350 billion.

Imagine the following scenario: an attacker acquires consumers’ login credentials through a data breach. They use these credentials to test account access and observe account activity to understand the ebbs and flows of normal cash movement – peering into private financial records – verifying the optimal time to strike for the most financial gain. Surveillance and fraud staging are the seemingly benign and often-transparent account activities that fraudsters undertake after an account has been compromised but before that compromise has been detected or money is moved. Activities include viewing balances, changing settings to more effectively cover tracks, and setting up account linkages to stage eventual fraudulent transfers. The unfortunate thing is that the actual theft is often the final event in a series of several fraudulent surveillance and staging activities that were not detected in time. It is the activity that occurs before theft that can severely undermine consumer trust and can devastate a brand’s reputation. Read more about surveillance, staging and the fraud lifecycle in this complimentary whitepaper.

Understanding shelf companies and shell companies In our world of business challenges with revenues level or trending down and business loans tougher than ever to get, “shelf” and “shell” companies continue to be an easy option for business opportunities. Shelf companies are defined as corporations formed in a low-tax, low-regulation state in order to be sold off for its excellent credit rating. Click on the internet and you will see a plethora of vendors selling companies in a turn-key business packages. Historically off-the-shelf structures were used to streamline a start-up, where an entrepreneur instantly owns a company that has been in business for several years without debt or liability. However, selling them as a way to get around credit guidelines is new, making them unethical and possibly illegal. Creating companies that impersonate a stable, well established companies in order to deceive creditors or suppliers in another way that criminals are using shelf companies for fraudulent use. Shell companies are characterized as fictitious entities created for the sole purpose of committing fraud. They often provide a convenient method for money laundering because they are easy and inexpensive to form and operate. These companies typically do not have a physical presence, although some may set up a storefront. According to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network, shell companies may even purchase corporate office “service packages” or “executive meeting suites” in order to appear to have established a more significant local presence. These packages often include a state business license, a local street address, an office that is staffed during business hours, a conference room for initial meetings, a local telephone listing with a receptionist and 24-hour personalized voice mail. In one recent bust out fraud scenario, a shell company operated out of an office building and signed up for service with a voice over Internet protocol (VoIP) provider. While the VoIP provider typically conducts on-site visits to all new accounts, this step was skipped because the account was acquired through a channel partner. During months one and two, the account maintained normal usage patterns and invoices were paid promptly. In month three, the account’s international toll activity spiked, causing the provider to question the unusual account activity. The customer responded with a seemingly legitimate business explanation of activity and offered additional documentation. However, the following month the account contact and business disappeared, leaving the VoIP provider with a substantial five figure loss. A follow-up visit to the business showed a vacant office suite. While it’s unrealistic to think all shelf and shell companies can be identified, there are some tools that can help you verify businesses, identify repeat offenders, and minimize fraud losses. In the example mention above, post-loss account review through Experian’s BizID identified an obvious address discrepancy – 12 businesses all listed at the same address, suggesting that the perpetrator set up numerous businesses and victimized multiple organizations.  It is possible to avoid being the next victim and refine and revisit your fraud best practices today. Learn more about Experian BizID and how to protect your business.

According to the latest Experian-Oliver Wyman Market Intelligence Report, mortgage originations increased 25% year over year in Q1 2015 to $316 billion.

Soaring in the solar energy utility market By: Mike Horrocks and Rod Everson The summer is a great time of the year - it kicks off summer and the time to enjoy the sunshine and explore! It is also for me the recognition that days now are only getting shorter and makes me think about my year goals and am I going to hit them. In this spirit of kicking off summer, I thought I would talk about three opportunities that the utility vertical could and should take advantage of. 1. The future of Solar Photovoltaics (PV) is just getting brighter A recent study called out an expected 25 percent jump in Solar PV installs over the previous year. This is jump is just another in a long line of solar install records. While the overall cost of these installs has dropped, one must ask whether the accessibility is there for everyone. The answer is not yet. A potential opportunity may come in the form of community solar as an advantage over rooftop solar. This scenario involves a utility installing an array of PV cells and then carving out a specific cell for an individual residential customer for lease, crediting his or her bill at a percentage of the cost. 2. Generations are bringing change Just as spring gives way to summer, summer will give way to fall. The same is true in the utility markets on many fronts. At a larger infrastructure scale, utilities have to think about the kind of plants and capital investments they want to make. Another report indicated that 60,000 megawatts of coal energy is going to be retired over the next four years. This obviously will change the capital decision making functions in the industry. At a more personal level, however, there are changes in the consumers and their behaviors as well. Are those changes being accounted for in your organization? Is the next generation of consumers and the products and services it will demand being formulated in your strategy? How will you identify those consumers and secure them as customers?  For example, while electrical energy consumption has been decreasing, what would be the impact if there was a revolution in battery technology? What if charging an electric automobile battery became as fast as filling a tank of gas? What if the battery gave you the same mileage range as a tank of gas and did it at a lower cost per mile? Would electric usage spike? 3. Blackouts happen; be prepared The best-laid plans sometimes still cannot account for those acts of God that cause disruptions to the grid. Blackouts happen, and if you don’t have flashlights with new batteries, you will be left in the dark. The same uncertainty is inevitable in the utility vertical. In the 2015 PwC Power and Utility Survey, 3 percent of the respondents said that there would be minor disruptions in business models, with the rest saying the disruptions would range from moderate to very disruptive. In fact, more than 47 percent of respondents said the changes would be very disruptive. What kind of flashlight-and-fresh-batteries strategy will you employ when the lights go out? Are your decision strategies and risk-management practices based on outdated solutions or approaches? Consider whether your business can take advantage of these situations. If you’re not sure, let’s set aside some time to discuss it, and I can share with you how Experian has helped others. There are still many sunny days ahead, but act now before the seasons change and you and your strategies are left out in the cold.

Some of my fondest memories on road trips as a child were the games we were able to play. I’m sure many kids played “I Spy” and did “Sing-a-longs,” but my go-to game was “Slug Bug” (It’s a game where you get points for spotting a Volkswagen Beetle). While it’s been quite some time since I’ve played the game, I still find myself very aware of the different types of vehicles around me. As a matter of fact, if I were to play the game today, I’d probably rack up a number of points for the amount of cross-over utility vehicles (CUVs) I’ve seen on the road lately. There are quite a few. After reviewing Experian Automotive’s most recent Market Trends and Registration analysis, it all made sense. During the first quarter of 2015, the entry-level CUV was the top new registered vehicle segment, up 6.3 percent from a year ago. It also marked the fifth consecutive quarter that the entry-level CUV was the top-selling new vehicle segment. It was followed by the small economy car and a full-sized pickup truck. The analysis also found that it wasn’t just the CUV that saw an uptick in new registrations. In fact, seven of the top 10 new registered vehicle segments saw increases in sales from a year ago, and 16.6 million new vehicles overall found their way onto U.S. roads in the first quarter of 2015. The spike in new registrations combined with fewer vehicles going out of operation drove the number of vehicles on the road to nearly 253 million, its highest level since the second quarter of 2008. As CUVs continue to stand on top of the mountain of new vehicle sales, and small economy cars sprint pass the full-sized pickup truck, you might think similar patterns have emerged in the overall number of vehicles on the road. But it’s not necessarily the case. Despite falling to the third most purchased new vehicle segment, full-sized pickup trucks remain the most popular vehicle on the road, making up roughly 15 percent of the market. That said, entry-level CUVs have seen the most dramatic increase, rising 12.2 percent from a year ago. Trends in the automotive market can sometimes appear to be cyclical, which is why it’s important for the industry to pay close attention to the data sets available to them. By leveraging the data, dealers, retailers, and manufacturers can benefit from the insights to make better business decisions, whether it’s relocating inventory or adapting to consumer demand. Similarly, identifying what vehicles consumers are driving, can do more than help you win in “Slug Bug,” it can help you win in the market.

Nowadays, whenever you hear news about the automotive industry, a negative tone tends to pop up. Whether it’s the increase in lending to subprime consumers, or the lengthening in loan terms, the stories lead one to believe that the industry is headed toward another “bubble.” However, that’s not necessarily the case. When we look at the data, the automotive finance market actually demonstrates a strong industry as a whole. Yes, it’s true that subprime lending is up. But, lending has increased across all risk tiers. In fact, loans to super prime consumers have actually seen the largest increase in volume compared to last year, approximately 8.5 percent. To take it a step further, the market share of loans to subprime consumers has decreased from a year ago. At its bare bones, what it means is that consumers are not only purchasing cars, but they are taking out loans to do so. Furthermore, given the percentage of loans extended to each risk tier, we see that lenders have not opened up their portfolios to increased risk. Both of which are positive indications of a strong market. We’ve also seen a steady increase in the length of loan terms. However, before anyone comes to any rash conclusions, it’s not as ominous a sign as it may seem. As cars and trucks have become more expensive to purchase, the easiest way for consumer to keep their monthly payments affordable has been to extend the life of their loans. That said, it’s critical for consumers to understand that by taking out a longer loan, they may need to hold onto the vehicle longer to avoid facing negative equity should they trade it in after a few years. An alternate route many consumers have taken to keep their monthly payments affordable has been leasing. In the first quarter of 2015, we saw leasing account for 30.2 percent of all new financed vehicles – its highest level on record. At the end of the day, consumers are continuing to purchase vehicles and that’s a positive sign for the industry. By gaining a deeper understanding of current automotive financing trends, lenders will be able to use the data and insights to their benefit by better meeting the needs of the marketplace and mitigating the risk of their portfolios. And if they do that, the good times can continue to roll for the industry.

Apple eschewed banks for a retailer focus onstage at their Worldwide Developers Conference (WWDC) when it spoke to payments. I sense this is an intentional shift – now that stateside, you have support from all four networks and all the major issuers – Apple understands that it needs to shift the focus on signing up more merchants, and everything we heard drove home that note. That includes Square’s support for NFC, as well as the announcements around Kohls, JCPenney and BJ’s. MasterCard's Digital Enablement Service (MDES) - opposite Visa’s Token Service - is the tokenization service that has enabled these partnerships specifically through MasterCard’s partners such as Synchrony – (former GE Capital) which brought on JCPenney, Alliance Data which brought on BJ’s, and CapitalOne which enabled Kohls. Within payments common sense questions such as: “Why isn’t NFC just another radio that transmits payment info?” or “Why aren’t retailer friendly payment choices using NFC?” have been met with contemptuous stares. As I have written umpteen times (here), payments has been a source of misalignment between merchants and banks. Thus – conversations that hinged on NFC have been a non-starter, for a merchant that views it as more than a radio – and instead, as a trojan horse for Visa/MA bearing higher costs. When Android opened up access to NFC through Host Card Emulation (HCE) and networks supported it through tokenization, merchants had a legitimate pathway to getting Private label cards on NFC. So far, very few indeed have done that (Tim Hortons is the best example). But between the top two department store chains (Macy’s and Kohls) – we have a thawing of said position, to begin to view technologies pragmatically and without morbid fear. It must be said that Google is clearly chasing Apple on the retailer front, and Apple is doing all that it can, to dig a wider moat by emphasizing privacy and transparency in its cause. It is proving to be quite effective, and Google will have to “apologize beforehand” prior to any merchant agreement – especially now that retailers have control over which wallets they want to work with – and how. This control inherits from the structures set alongside the Visa and MasterCard tokenization agreements – and retailers with co-brand/private label cards can lean on them through their bank partners. Thus, Google has to focus on two fronts – first to incentivize merchants to partner so that they bring their cards to Android Pay, while trying to navigate through the turbulence Apple has left in its wake, untangling the “customer privacy” knot. For merchants, at the end of the day, the questions that remain are about operating costs, and control. Does participation in MDES and VEDP tokenization services through bank partners, infer a higher cost for play – for private label cards? I doubt if Apple’s 15bps “skim off the top” revenue play translates to Private Label, especially when Apple’s fee is tied to “Fraud Protection” and Fraud in Private Label is non-existent due to its closed loop nature. Still – there could be an acquisitions cost, or Apple may plan a long game. Further, when you look at token issuance and lifecycle management costs, they aren’t trivial when you take in to context the size of portfolio for some of these merchants. That said, Kohls participation affords some clarity to all. Second, Merchants want to bring payments inside apps – just like they are able to do so through in-app payments in mobile, or on online. Forcing consumers through a Wallet app – is counter to that intent, and undesirable in the long scheme. Loyalty as a construct is tangled up in payments today – and merchants who have achieved a clean separation (very few) or can afford to avoid it (those with large Private label portfolios that are really ‘loyalty programs w/ payments tacked on’) – benefit for now. But soon, they will need to fold in the payment interaction in to their app, or Apple must streamline the clunky swap. The auto-prompt of rewards cards in Wallet is a good step, but that feels more like jerry rigging vs the correct approach. Wallet still feels very v1.5 from a merchant integration point of view. Wallet not Passbook. Finally, Apple branding Passbook to Wallet is a subtle and yet important step. A “bank wallet” or a “Credit Union wallet” is a misnomer. No one bank can hope to build a wallet – because my payment choices aren’t confined to a single bank. And even where banks have promoted “open wallets” and incentivized peers to participate – response has been crickets at best. On the flip side, an ecosystem player that touches more than a device, a handful of experiential services in entertainment and commerce, a million and a half apps – all with an underpinning of identity, can call itself a true wallet – because they are solving for the complete definition of that term vs pieces of what constitutes it. Thus – Google & Apple. So the re-branding while being inevitable, finds a firm footing in payments, looks toward loyalty and what lies beyond. Solving for those challenges has less to do with getting there first, but putting the right pieces in play. And Apple’s emphasis (or posturing – depending on who you listen to) on privacy has its roots in what Apple wants to become, and access, and store on our behalf. Being the custodian of a bank issued identity is one thing. Being a responsible custodian for consumer’s digital health, behavior and identity trifecta has never been entirely attempted. It requires pushing on all fronts, and a careful articulation of Apple’s purpose to the public must be preceded by the conviction found in such emphasis/posturing. Make sure to read our perspective paper to see why emerging channels call for advanced fraud identification techniques

Every time I turn on my television, look out my window or drive into the office, I always see hybrid or electric vehicles on the road. These days it seems like almost everyone is going green. With all the alternative-powered vehicles out there, you’d think that the market is simply booming, right? Would you believe me if I told you that the percentage of newly registered alternative-powered vehicles in 2014 actually declined from the previous year? It’s true. With this revelation, we actually took a deeper look into the alternative-powered vehicle market to see what else we can discover. Here’s what we found: Did you know that consumers who buy “Green” vehicles, purchase them in cash at a higher rate than those that buy more traditional models? Again, it’s a fact. The point is, there are many stereotypes and misnomers about alternative-powered vehicles, as well as the consumers who purchase them. But, just as there are hundreds of stereotypes, there also is an abundance of data to help confirm or reject them. At Experian, we’re committed to using our data for good by providing information into the market to help dealers, manufacturers and consumers better understand the environment we live in – whether we are talking broadly about what metal is moving or more specifically providing actionable insights into who is “going green”. For instance, consumers purchasing an alternative-powered vehicle tend to be a lower credit risk than those purchasing a traditional model. Nearly 83 percent of consumers who purchased a “Green” vehicle fell within the prime credit category, while the same could only be said for 71.5 percent of consumers who purchased gas-powered models. Additionally, of the top five alternative-powered vehicle models in 2014, three of them came from the Toyota family. The Toyota Prius and Prius C were in the top two, while the Camry was in the number four position. The Ford Fusion and Nissan Leaf made up the third and fifth spots, respectively. It’s these insights that enable the automotive industry and its consumers to take the appropriate action and make the best decisions for them. For consumers, gaining insight into the market allows them to paint a clearer picture of what options are most popular and available. For dealers and manufacturers, they are able to gain a better understanding of consumer demand and provide inventory that meets the needs of the market. The fact of the matter is, opportunity exists everywhere you look, you just have to know what you’re looking for. You can’t let preconceived notions or ideas dictate future decisions. By leveraging data and insight, the automotive industry is able uncover the unknowns and put itself in a good position to succeed, while helping consumers purchase vehicles that meet their specific lifestyle.