Last year, my wife and I decided to take advantage of Experian’s remote-work policy and move back to my hometown, so we could be closer to family and friends. As excited as we were, the idea of selling and buying a home during the market frenzy was a little intimidating. Surprisingly, finding a home wasn’t our challenge. We lucked out and found what we were looking for in the exact neighborhood we wanted. Our biggest challenge was timing. Our goal was to sell our current home and immediately move into the new one, with no overlap of payments or having to put our belongings in storage while we temporarily stayed with family (or in a short-term rental). Once we sold our home, we had exactly 30 days to close on our new home and move in. Since this wasn’t our first rodeo, I felt confident all would go smoothly. Things were on schedule until it came time to verify our income and employment. Who knew something so simple could be so hard? Let me share my experience with you (crossing my fingers you have a smoother experience in place for your borrowers): Pay statements — I was initially asked to provide pay statements for the previous two months. Simple enough for most borrowers, but it does require accessing your employer payroll system, downloading multiple pay statements and then either uploading them to your lender portal or emailing them to your loan officer (which no borrower should be asked to do). This took me less than 30 minutes to pull together. Verification report — After reviewing my pay statements, my lender told me they needed an official verification report on my current and previous employers. At the time, Experian had just acquired Corporate Cost Control (now part of Experian Employer Services), a company that offers verification-fulfillment services for employees, employers and verifiers. I told my lender I could provide the verification report via Corporate Cost Control and they agreed it would be sufficient. This took me several days to figure out. HR information — Just when I thought we were good, I received an email from my lender asking for one last thing — the HR contact information of my current and previous employers. Obtaining this information from Experian was easy, but I didn’t know where to start with my previous employer. I ended up texting some former colleagues to get the information I needed. This too took several days to figure out. Finally, I got the call from my lender saying everything checked out and I was good to proceed with the underwriting process. Whew! What I thought would take 30 minutes ended up taking a full week and threatened our ability to close on time. And not to mention was a massive headache for me personally. This isn’t how you want your borrowers to feel, which brings me to the title of this blog, it’s 2022, why is mortgage employment verification so painful in today’s digital age? Other industries have figured out how to remove pain and friction from their user experiences? Why is the mortgage industry lagging? Mortgage employment verification made easy If it’s lack of awareness, you should know there are tools that can automate verification decisions. Experian Verify™ is a perfect example where mortgage lenders can instantly verify a borrower’s income and employment information (both current and previous employers), without needing to ask the borrower to track down pay statements or HR contact information. You can literally verify information in seconds — not hours, days, or weeks.  And the service supports Day 1 Certainty® from Fannie Mae — giving you increased peace of mind the data is accurate and trusted. This not only improves the borrower experience but increases efficiency with your loan officers. Tools like Experian Verify are a win-win for you and your borrowers. So, what are you waiting for? Modernize your experience and give your borrowers (like me) the frictionless experience they deserve, and if we’re being honest, are starting to demand. Learn more about income and employment verification for mortgage    

From desktops and laptops to smartphones and tablets, consumers leverage multiple devices when engaging with businesses. For financial institutions, it’s important to identify and track consumers across devices to deliver personalized offers and increase opportunities for conversion. The problem with cookies Marketers have traditionally used cookies to determine what their audience’s interests are based on their browsing activity and past purchases. An example of this is when a user browses a product on a website and then leaves without buying. Later that day, they see an ad on social media featuring the same product they viewed earlier. While this may seem like an effective way for financial institutions to target or prescreen consumers, cookies are very limited — they can’t capture or connect a user’s behavior across multiple touchpoints. In other words, if a consumer were to browse a website on their mobile phone and then switch to their laptop, the business would view these sessions as two different visits from two different people, resulting in inconsistent messaging and a disjointed user experience. This is a huge problem because devices don’t decide to convert — people do. To reach the right consumers with the right message wherever they may be, financial institutions must look beyond cookies. This is where people-based marketing comes in. What is people-based marketing? People-based marketing takes a more personal marketing approach. Rather than targeting devices, people-based marketing connects businesses with real people, helping them understand who their customers are, what they’re looking for and how to engage them in more meaningful ways. It does this by gathering customer data from both online and offline sources to create a single customer profile. Let’s look at an example of people-based marketing by revisiting the scenario above. A user is browsing a company’s website on their mobile phone and decides to switch to their laptop. By capturing a single view of the user with a people-based marketing solution, the brand can recognize them and resume their experience on the new device. What’s more, the brand understands the user’s intent at that stage of their customer journey and leverages real-time data to make relevant offers and recommendations, helping further personalize their experience. Benefits of a people-based marketing approach To create better-targeted credit marketing campaigns, financial institutions must ensure they have the right data and technologies in place. Experian’s industry-leading database technology provides the freshest, most comprehensive consumer credit data to help organizations optimize their lending criteria and marketing campaigns. With Experian’s people-based marketing solutions, financial institutions can: Reach the right people: Leveraging fresh consumer data allows financial institutions to target the best prospects for their business needs and avoid making preapproved offers to nonqualified consumers. Deliver personalized credit offers: By gaining a more complete view of consumers, financial institutions can ensure they’re sending relevant offers to users where and when they’re most motivated to respond. Enhance their retargeting efforts: If a user isn’t ready to convert upon their first interaction, organizations can reach them on another device to reinforce their messaging in more personalized ways. Provide frictionless, omnichannel experiences: Seamless identity resolution allows organizations to accurately recognize consumers across devices, leading to more precise targeting and cohesive customer experiences. Reduce marketing spend: By focusing on the right audience with the right message, organizations can avoid unlikely prospects and reduce wasted marketing spend, all while increasing response rates. Expand their reach: With rich insights into their clients’ interests, demographics and behaviors, financial institutions can target prospects who share similar characteristics and are likely to convert. Leveraging an effective people-based marketing strategy is crucial to delivering personalized and consistent customer experiences in today’s multi-device world. To learn more about how Experian can help, visit us today. Learn about our people-based marketing solutions

According to Experian’s Automotive Market Trends Report: Q1 2022, new vehicle registrations were down 19% from the prior year—declining to 3.4 million. Used registrations went from 11.4 million to 9.9 million year-over-year, decreasing 13.2%.

Even before the COVID-19 pandemic, many Americans lacked equal access to financial products and services — from tapping into affordable banking services to credit cards to financing a home purchase. The global pandemic likely exacerbated those existing issues and inequalities. That reality makes financial inclusion — a concerted effort to make financial products and services affordable and accessible to all consumers — more crucial than ever. The playing field wasn't level before the pandemic The Federal Reserve reported that in 2019, Black and Hispanic/Latino families had median wealth that was just 13 to 19 percent of that of White families — $24,100 and $36,100, respectively, compared to $188,200 for White families. That inequity is also reflected in credit score disparities. While credit scores, income, and wealth aren't synonymous, the traditional credit scoring system leads marginalized communities to be disproportionately labeled unscoreable or credit invisible, and face challenges in accessing credit. New research from Experian shows that in over 200 cities, there can be more than a 100-point difference in credit scores between neighborhoods — often within just a few miles from each other. Marginalized communities bore the financial brunt Minority communities were also disproportionately impacted by COVID-19 in terms of infections, job losses, and financial hardship. In mid-2020, the Economic Policy Institute (EPI) reported Black and Hispanic/Latino workers were more likely than White workers to have lost their jobs or to be classified as essential workers — leading to economic or health insecurity. Government initiatives — including the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Paycheck Protection Program (PPP) and the American Rescue Plan — created expanded unemployment benefits, paused loan payments, eviction moratoriums, and direct cash payments. These helped consumers' immediate financial well-being. The National Bureau of Economic Research found that, on average, U.S. households spent approximately 40 percent of their first two stimulus checks, with about 30 percent used for savings and another 30 percent used to pay down debt. In some communities highly affected by COVID-19, consumers were able to pay down nearly 40 percent of their credit card balances and close more than 9 percent of their bank card accounts, according to recent data. Stimulus payments have been credited with reducing childhood poverty and helping families save for financial emergencies. That being said, people on the upper end of the income scale were able to improve their financial situation even more. Their wealth grew at a much faster pace than people at the bottom end of the income distribution scale, according to data from the Federal Reserve. How the pandemic deepened financial exclusion Although hiring has picked up in low-wage industries, research indicates that low-wage jobs have been the slowest to return. According to a survey by the Pew Research Center, among respondents who said their financial situation worsened during the pandemic, 44 percent believe it will take three years or more to get back to where they were a year ago. About 10 percent don't think their finances will ever recover. Recent Experian data shows that consumers in certain communities that were already struggling to pay their debts fell into an even bigger hole. These consumers missed payments on 56 percent more accounts in the period between spring 2019 to spring 2020 compared to the year prior. Credit scores in these neighborhoods fell by an average of over 20 points during the first 18 months of COVID-19. That being said, U.S. consumers overall increased their median credit scores by an average of 21 points from the end of 2019 to the end of 2021. When consumers with deteriorating credit encounter financial stresses, often their only recourse is to pile on additional debt. Even worse, those who can't access traditional credit often turn to alternative credit arrangements, such as short-term loans, which may charge significantly higher interest rates. READ MORE: More Than a Score: The Case for Financial Inclusion What can the financial sector do? Without access to affordable financial services and products, subprime or credit invisible consumers may not get approved for a mortgage or car loan — things that might come much easier for consumers with better scores. This is just one reason why financial inclusion is so important — and why financial services companies have a big role to play in driving it. One place to start is by taking a broader view of what makes a creditworthy consumer. In addition to traditional credit scoring models, new tools can leverage artificial intelligence and machine learning, along with alternative data, to analyze the creditworthiness of consumers. By qualifying for credit, more consumers can access affordable mortgages, car loans, business loans and insurance - freeing up money for other expenses and allowing them to grow their wealth.. READ MORE: What Is Alternative and Non-Traditional Data? Last word Marginalized communities were already struggling economically before the pandemic, and the impact of COVID-19 has made the wealth disparities worse. With the pandemic waning, now is the time for financial institutions to take action on financial inclusion. Not only does it help improve your customers' lives and make them better prepared for the next crisis, but it also fuels your business's growth and bottom line.

Across all levels of government, we are seeing a surge in digital modernization — transforming the delivery of traditional services into a contactless, digital environment. Whether it is with the Social Security Administration’s digital modernization effort, the state of California’s Vision 2023, or even at the local level with counties modernizing digital access to records for their citizens. This comes at a time when identity fraud in government services is growing at an alarming rate, with an increase of over 2,900 percent related to government benefits or document fraud in 2020 according to the FTC. A key challenge for any agency planning digital modernization is balancing access with security. This is particularly critical in an environment where over 1 billion records were exposed over a recent five-year span. Given the U.S. population is currently about 330 million, that means each citizen had an average of three breach exposures. Therefore, identity proofing must be a critical part of any agency modernization effort. National Institute of Standards and Technology Special Publication (NIST SP) 800-63 revision 3 lays out a risk assessment to help organizations determine the appropriate level of security to apply based on six areas of impact. However, identity proofing a new citizen through digital channels requires significant friction at levels above Identity Assurance Level 1 (IAL1). The stringent requirement for a biometric match in this standard at IAL2 presents a real challenge to the balance mentioned above, which has led agencies to seek alternatives that both combat the risk of fraud and identity theft and are operationally sound. Experian has been supporting the private sector in this endeavor for years, helping them effectively manage identity theft and fraud concerns while allowing seamless access to services for the vast majority of their consumers. This risk-based approach through our CrossCore® platform and multitude of options to identify and combat fraud allows agencies to deliver the security and accessibility expected by their citizens. CrossCore allows agencies to verify and identify citizens using multiple data points: Traditional personally identifiable information (name, address, Social Security number, date of birth) Email Phone number Device identification Biometrics CrossCore can instantly take the risk information from these risk signals above and initiate additional verification where there is a higher risk of identity theft or fraud, including knowledge-based verification (KBV), one-time passcode (OTP) to a trusted phone number linked to the identity being presented, or even remotely verifying identity documents (e.g., driver’s license, passport, etc.) through our new CrossCore Doc Capture solution. Just recently, Experian helped a state lottery agency implement an efficient identity proofing system to enable digital redemption of winning tickets, saving both the government and the citizens time and money. Experian’s identity, verification, and fraud solutions can help government agencies of all sizes on their journey to digital modernization. To learn more about the options available to your agency, visit us or request a call. CrossCore Doc Capture

Whether a consumer has a brand-new or used vehicle, it’s inevitably going to need regular maintenance and require repairs. Fortunately for aftermarket professionals, the aftermarket “sweet spot” is continuously growing—a trend that should be watched closely. Vehicles in the sweet spot are typically between six- to 12-model-years-old and have aged out of general OEM manufacturer warranties for any repairs. Knowing the model year and type of vehicles that are in operation will be important for aftermarket professionals to determine what parts may be needed, and anticipate potential consumer needs. According to Experian’s Automotive Market Trends Report: Q1 2022, 35.8% of vehicles in operation (VIO) now fall within the aftermarket sweet spot, a 6.5% year-over-year increase. It is important to note that the aftermarket sweet spot max volume record of 104 million is expected to be broken over the next 12-18 months, considering the sweet spot volume was 100.3 million through Q1 2022 and the last time it exceeded that number was nine years ago. The increase will create more opportunities for aftermarket professionals as more vehicles will potentially need maintenance. Aftermarket “sweet spot” will continue to grow Right now, the aftermarket sweet spot consists of model years between 2011 and 2017. There were 10.5 million 2011 model year vehicles on the road through Q1 2022, this low volume will transition into the post-sweet spot next year. At the same time, there will be 16.5 million 2018 model year vehicles entering the sweet spot. Furthermore, an estimated 16.7 million vehicles in operation with a 2019 model year and almost 14.3 million vehicles in operation with a 2020 model year will be transitioning into the sweet spot in the next two years. When these model year vehicles enter the sweet spot, the current 12 million vehicles with a 2012 model year and an estimated 13.7 million 2013 model year vehicles will transition into the post-sweet spot, resulting in a notable increase. Watching this data closely will allow aftermarket professionals to continue assisting with maintenance and repairs for these vehicles that are currently on the road, as well as prepare for what’s to come to the aftermarket industry in approaching years. To learn more about other vehicle registration trends, watch the full Automotive Market Trends Report: Q1 2022 presentation on demand.

Online transactions face a higher chance of being declined because face-to-face transactions come with a higher degree of confidence. Businesses who fail to address this problem run the risk of losing the customer permanently, damaging their reputation and bottom line. What can e-commerce marketplace merchants do to increase the approval rate of online payments without making fraud worse? Here are three tips: 1. Broaden access to data beyond what’s in the authorization stream. Merchants use a variety of solutions to prevent fraud and verify identities, but typically use very limited data to approve a transaction through the authorization stream between a merchant and issuer. The issuing bank often only compares the purchase data to the address listed on the card owner’s account, which can create discrepancies when a customer is trying to send an order to an alternate address from their primary home. That’s why it’s important for merchants to augment their decisioning with additional data sources to help inform the true customer risk profile. 2. Leverage capabilities that can assess risk for both the transaction and the individual behind it. Today, merchants leverage limited data including email address data, device information and other technologies in silos to augment their address verification capabilities. The challenge with these tools is that each judge the risk of a specific component of the transaction or the individual. Where integration is lacking, false positives are amplified. 3. Collaborate and share expertise and data across merchants and issuers. How can Experian help? Leveraging our multidimensional data, technical expertise and advanced analytics capabilities, we can help businesses frictionlessly authenticate valid customers, thus increasing revenue by increased approval rates, without increasing fraud or operating expenses. Only Experian Link™, our frictionless credit card owner verification solution can associate payment card with its owner. This solution combines Experian’s vast data assets – including over 500 million credit card account numbers on file in the U.S. across 250 million consumers – with our advanced analytics capabilities to match and assess the risk of the identity attributes presented to the merchant to the identity attributes contributed by the credit card’s issuer and to Experian’s network of credit and identity inquiries. The result: Experian Link’s patent-pending REST API simply and frictionlessly improves a merchant’s customer experience and helps increase revenue while reducing their fraud and operating expenses. Get started with Experian Link™ now. Experian Link

Even as 75% of large and mid-sized U.S. e-commerce marketplace merchants predict continued double-digit online sales growth rates through the end of 2022,1 their success is hampered by unnecessary friction driven by concerns of card-not-present fraud and additional fraud risks in an online world. Compared to the 96% approval rate for point-of-sale purchases, card-not-present transactions yield a surprisingly low 81% approval rate. According to a survey conducted by Aite Novarica,1 the difference stems from reviewing up to 16% of attempted transactions for possible fraud. Even more surprising is that many of the respondents report that more than two-thirds of these reviews are later found to be unwarranted. Current transaction processing and risk capabilities are impeding growth and creating friction that damages e-commerce marketplace brands. What do we mean when we talk about online card-not-present transaction friction? Much of the success or failure of e-commerce depends on how easy merchants make it for consumers to complete a transaction. Effective identity resolution, fraud mitigation and risk solutions can lead to increased sales, while unrefined solutions and unnecessary friction will run merchants the risk of denying a legitimate customer purchase at checkout because they have been incorrectly labeled a fraudster–a ‘false positive’ or ‘false decline.’ These solutions leave room for improvement based on several key factors–the limited amount of data that passes through the authorization stream from the merchant to the issuer is a key contributor. According to Aite-Novarica Group’s The E-Commerce Fraud Enigma: The Quest to Maximize Revenue While Minimizing Fraud Report, “This reinforces the importance for merchants to augment the decisioning on their side with a wide variety of data sources that can help inform them regarding the risk profile of both the customer and the transaction.” Challenges with current transaction processing and verification tools Today, merchants leverage email address data, device information and other technologies to augment their address verification capabilities. The challenge is that these tools each judge the risk of a specific component of the transaction or the individual. Where integration is lacking, false positives are amplified and that is exactly what the data1 says is happening. Different tools working in isolation all catch the same fraud but flag different false positives—dragging down overall performance. The result is that 75% of e-commerce merchants place maximizing sales, minimizing friction and reducing false declines at the top of their to-do list. 88% say they are ready for a change to achieve these goals.1 Fast Facts 16% of all attempted online transactions experience friction for suspected fraud. 70% of this number is unnecessary, and upon manual review, are ultimately approved.1 78% of e-commerce merchants report friction driven by suspected fraud is increasing. 78% of merchants report increasing declines due to suspected fraud over the last two years. 46% indicate an increase of more than 5%.1 81% of consumers say that a positive online experience makes them think more highly of a brand.2 The longer it takes for banks and issuers to process new account, the higher the rate of abandonment, which reaches 40% when the process takes longer than 10 minutes.3 The friction that consumers encounter throughout their buying journey and the expenses associated with merchant and issuer manual reviews can be costly. It is estimated that 70% of unwarranted friction is costing businesses ~$11B in false decline losses and sales annually.1 That number is expected to increase. And, beyond profit losses incurred from the order that was declined, merchants risk damaging brand reputation because of poor customer/buying experiences, and in some cases, the loss of the customer relationship as well. Reducing friction and providing a positive shopping experience is increasingly important to business success Businesses looking to address this and limit false declines should not allow this to come at the expense completing transactions for legitimate customers. Experian can help. By leveraging our multidimensional data, technical expertise and advanced analytics capabilities, we can help businesses authenticate valid customers without unnecessary friction, thus increasing revenue by increased approval rates, without increasing fraud or operating expenses. Get started with Experian Link™ - our frictionless credit card owner verification solution. Learn more. Experian Link   1"E-Commerece Fraud Enigma: The Quest to Maximize Revenue While Minimizing Fraud Report" Aite-Novarica Group, July 2022 2"Global Insights Report: The Evolving Expectations and Experience of the New Digital Customer" Experian, April 2022 3"Capturing the Digital Identity Evolution Through a Layered Approach" Liminal, June 2021

There’s no doubt that fraudulent transactions can end up costing businesses money , which have led many to implement risk-mitigation strategies across every stage of the purchasing journey. However, this very same protection can increase false declines, and the associated friction can create high rates of cart-abandonment and negative impacts for a business’s brand. What is a false decline? A false decline is a legitimate transaction that is not completed due to suspected fraud or the friction that occurs during verification. False declines occur when a good customer is suspected of fraud and then prevented from completing a purchase. This happens when a company’s fraud prevention solution provides inadequate insight into the identity of the customer, flagging them as a potential bad actor. The result is a missed sale for the business and a frustrating transaction and experience for the customer. Are false declines costing your business money? False declines have high revenue and cost consequences for e-commerce marketplace merchants. By denying a legitimate customer purchase at checkout, businesses risk: Loss of new sales directly impacting revenue 16% of all sales are rejected by e-commerce merchants unnecessarily costing businesses ~$11B in sales annually,1 with an estimated 70% of unwarranted friction as a contributing cause. Loss in customer loyalty and lifetime value Blocked payments can leave customers with a poor impression of your business and there’s a good chance they’ll take their business elsewhere. Tarnished business reputation Today’s customers expect businesses and online services to work seamlessly. 81% of consumers say a positive experience makes them think more highly of a brand. Therefore, your brand might take a hit if unnecessary obstacles prevent them from having a good experience. High operational overhead costs The average business manually reviews 16% of transactions for fraud risk. It is estimated that 10 minutes are needed for each review. This inefficiency can be costly as it takes time away from fraud teams who can work on higher priority or strategic initiatives. Businesses can benefit from a seamless and secure payment experience that drives real-time resolution and eliminates a majority of false declines and bottlenecks, ultimately helping increase approval rates without increasing risk. Get started with Experian Link™ - our frictionless credit card owner verification solution. Learn more 1"E-Commerece Fraud Enigma: The Quest to Maximize Revenue While Minimizing Fraud Report" Aite-Novarica Group, July 2022

There's no magic solution to undoing the decades of policies and prejudices that have kept certain communities unable to fully access our financial and credit systems. But you can take steps to address previous wrongs, increase financial inclusion and help underserved communities. If you want to engage consumers and keep them engaged, you could start with the following four areas of focus. 1. Find ways to build trust Historical practices and continued discriminatory behavior have created justifiable distrust of financial institutions among some consumers. In February 2022, Experian surveyed more than 1,000 consumers to better understand the needs and barriers of underserved communities. The respondents came from varying incomes, ethnicity and age ranges. Fewer than half of all the consumers (47 percent) said they trusted their bank's personal finance advice and information, and that dropped to 41 percent among Black Americans. In a follow-up webinar discussion of financial growth opportunities that benefitted underserved communities, we found that many financial institutions saw a connection between their financial inclusion efforts and building trust with customers and communities. Here is a sample question and a breakdown of the primary responses: What do you think is the greatest business advantage of executing financial inclusion in your financial institution or business?1 Building trust and retention with customers and communities (78%) Increasing revenue by expanding to new markets (6%) Enhancing our brand and commitment to DEI (14%) Staying in alignment with regulator and compliance guidelines (2%) Organizations may want to approach financial inclusion in different ways depending on their unique histories and communities. But setting quantifiable goals and creating a roadmap for your efforts is a good place to start. 2. Highlight data privacy and mobile access If you want to win over new customers, you'll need to address their most pressing needs and desires. Consumers' top four considerations when signing up for a new account were consistent, but the specific results varied by race. Keep this in mind as you consider messaging around the security and privacy measures. Also, consider how underserved communities might access your online services. Having an accessible and intuitive mobile app or mobile-friendly website is important and likely carries even more weight with these groups. According to the Pew Research Center, as of 2021, around a quarter of Hispanic/Latino and 17% of Black Americans are smartphone-dependent — meaning they have a smartphone but don't have broadband access at home. Low-income and minority communities are also less likely to live near bank branches or ATMs. 3. Offer lower rates and fees Low rates and fees are also a top priority across the board — everyone likes to save money. However, fewer Black and Hispanic households have $1,000 in savings or more compared to white households, which could make additional savings opportunities especially important. There have been several recent examples of large banks and credit unions eliminating overdraft fees. And the Bank On National Account Standards can be a helpful framework if you offer demand deposit accounts. Lowering interest rates on credit products can be more challenging, particularly when consumers don't have a thick (or any) credit file. But by integrating expanded FCRA-regulated data sources and new scoring models, such as Experian's Lift PremiumTM, creditors can score more applicants and potentially offer them more favorable terms. 4. Leverage credit education tools and messaging For consumers who've had negative credit experiences, are new to credit, or are recent immigrants with little understanding of the U.S. credit system, building and using credit can feel daunting. About 80% of women have little or no confidence in getting approved for credit or worry that applying could hurt them further. Only 20% of consumers who make less than $35,000 a year say they're "extremely" or "very" confident they'll be approved for credit. While most consumers haven't used credit education tools before, they're willing to try. More than 60 percent of Black and Hispanic respondents said they're likely to sign up for free credit education tools and resources from their banks. Offering these tools could be an opportunity to strengthen trust and help consumers build credit, which can also make it easier for them to qualify for financial products and services in the future. Moving forward with financial inclusion Broadening access to credit can be an important part of financial inclusion, and financial institutions can grow by expanding outreach to underserved communities. However, the relationship must be built on trust, security, and offerings that meet these consumers' needs. Through our Inclusion Forward™ initiative, Experian can support your financial inclusion goals — helping you empower underserved communities by helping them grow their financial futures. Learn more about Experian financial inclusion solutions and financial inclusion tools.

“As an industry, fintech is known for creating compelling and personalized online journeys. But that experience can suffer if the fraud-prevention routines are perceived as burdensome by consumers,” said Kathleen Peters, Chief Innovation Officer for Experian’s Decision Analytics business, in a recent Q&A article with Finovate.  With the proliferation of the digital world, managing digital identity and “getting it right” is crucial. However, as much as it is an opportunity, leveraging consumer identity data can also create a stumbling block for some organizations. Peters cited Experian’s annual Global Identity and Fraud Report, specifically, the consumer concern around online security and the need for industry players to find the right balance between security and a frictionless experience.  “In short, we need the right fraud-prevention treatment for the right transaction; it is not a one-size-fits-all exercise,” Peters said.  The interview also covered the importance of knowing a customer’s identity for compliance reasons and business use cases, dispelling the myth that banks’ efforts around personalization are considered “creepy” by consumers, and the best ways for banks and fintechs to build trust among their consumers.   According to Experian’s Global Identity and Fraud Report, consumers are willing to give entities they trust more data, particularly if they feel they are receiving value. And it’s undeniable that data is at the heart of personalization and building better relationships.  “It comes down to identifying and understanding consumers and their needs. The best way to do that is with a lot of data,” Peters said.  To read the full article, visit Finovate’s website.  Finovate: Experian CIO on Digital Identity, Personalization and Building Trust with Consumer Data  Learn more about Experian Identity

As competition for used vehicles remains fierce, dealers must make quick decisions on whether to acquire a potential vehicle—or someone else will. Whether you need to evaluate a trade-in or want to make a flat-out offer on a vehicle, quickly accessing the vehicle’s history is only the first step. What if you could determine the likelihood that a vehicle will be on the road in five years and compare it to other similar vehicles? Would this help in your decision-making? Use the AutoCheck Score to evaluate vehicles for your lot The patented AutoCheck ScoreSM was developed to help dealers determine the likelihood that a vehicle will be on the road in five years. The AutoCheck Score summarizes vehicle history data into an easy-to-understand “score” and provides an equivalent score range. Understanding the likelihood that a unit will still be on the road in five years gives dealers more perspective on a vehicle’s desirability and can help you accurately price it. Use the AutoCheck Score to more accurately merchandise vehicles The AutoCheck Score range will give you similarly aged and classed vehicles for comparison that you can use to help merchandise the vehicle for market and help manage consumer conversations regarding the vehicle’s price. How does the AutoCheck Score work? The AutoCheck Score analyzes various characteristics, including age, segment, mileage, number of owners, vehicle use, vehicle events, accidents, theft, and title brands. Essentially, this score summarizes the AutoCheck Vehicle History Report fields and delivers a “score range” that allows you to compare the actual vehicle (score) to other similarly aged and classed vehicles. The score is based on a scale of 1 to 100, but reading the score in conjunction with the score range is essential since looking at the score without knowing the range will reveal only half the story. Check out the example below. Car #1 has a lower score than Car #2. However, look at the score ranges (73-86). For Car #1, other comparable vehicles should fall into a range from 73 to 86, and this car scored an 84. That means the vehicle is within the AutoCheck Score range compared to other similar cars of the same age and class. Car #2 has a score of 89. Because this is higher than Car #1’s score, you might assume this car has a more favorable vehicle history, but that’s not entirely accurate. Comparable vehicles should score in a range from 90 to 95, and this car falls short. That means the car’s history is slightly less favorable compared to similar vehicles of the same age and class. In today’s competitive environment though, dealers may decide to take in both trades, and the AutoCheck Score can also help make decisions on how to price the vehicles for market. Become an AutoCheck member today As an AutoCheck subscriber, you’ll have access to the AutoCheck Score. Between the large graphic display and the simple number comparison, the AutoCheck Score can help you make decisions on vehicle acquisition much quicker and easier!

According to Experian's State of the Automotive Finance Market Report: Q1 2022, SUVs and CUVs made up 60.38% of total vehicle financing, an increase from 58.95% in Q1 2021.

This post was updated in 2022. Fraud prevention can seem like a moving target. Criminals often shift from one scheme to the next, forcing organizations to play catch up to protect consumers’ identities and funds. But with the right technology, it’s possible to implement a fraud solution that provides protection and enhances the consumer journey. The pandemic fraud boom Government stimulus funds, COVID-19 testing and the loosening of business controls were a boon for criminals and levied an immense cost against businesses and consumers.   Consumer fraud losses rose to $3.3 billion in 2020, up from $1.8 billion in 2019.   The rapid increase in digital activity had two significant impacts. First, it shifted new account applications to the digital channel, where increased anonymity favors fraudsters by creating an environment where identity thieves could hide among the immense volume of applicants and monetize stolen personally identifiable information (PII). Second, it fueled account takeover (ATO) attacks by introducing digital “newbies” with unsophisticated password habits and limited ability to recognize and protect themselves from malware or social engineering, making them easy targets for credential theft. The return of old-school fraud Now that businesses and consumers are growing wise to some of the fraud schemes brought on by the COVID-19 pandemic, criminals are turning to new avenues, including tried-and-true methods like account opening and ATO fraud. New account fraud is expected to cost U.S. financial institutions $3.5 billion in 2021 alone.   Fraud organizations will take the PII available and match it with automated tools to increase their efficiency and success rates while continuing with phishing and other schemes to gain new information that can fuel further attacks. Building a fraud solution Staying ahead of fraudsters may feel like a losing proposition but equipped with the proper fraud controls, you can enhance the customer experience, increase operational efficiency and protect against developing fraud schemes. With a fraud solution that uses multiple tools in concert, it’s possible to recognize, verify and holistically risk assess most consumers that pass through your portfolio. The right platform — ideally one that can call upon different services to perform each job — will enable your organization to flag suspicious activity, increase insight into large-scale attacks, track risky users and break down traditional internal silos. By coordinating efforts and adding multiple touchpoints to run both in the foreground and background, you can ensure the right friction is applied at the right time without diminishing the end-user experience. In fact, by improving your recognition tools, you can make the experience for recognized, legitimate customers even easier. To learn more about the potential impacts of traditional fraud and how your organization can leverage a fraud prevention solution to achieve your retention and growth goals, read our latest white paper or request a call. Read white paper Schedule a call

Mortgage lenders are no stranger to income and employment verification. Leveraging a third-party solution provider for automated verifications is a standard practice in mortgage underwriting. Yet many lenders still struggle with time-consuming and complex verification experiences, which can be manual, inefficient and painful for borrowers. Since introducing Experian Verify™ to the market, we’ve had countless conversations with key players in the industry – from the largest banks to small independent mortgage brokers and everything in between. Through these conversations, we’ve learned quite a bit about some of the dos and don’ts when it comes to implementing a successful strategy for income and employment verification for mortgage. Lead with instant verification Digital transformation has forever changed borrower expectations for online experiences. The first key to a successful verification strategy is starting your workflow with an instant verification solution. This allows you to verify information in real time, delivering a completely frictionless experience for you and your borrowers. Consider building a waterfall process For instances when a borrower’s income and employment information is unable to be verified through an instant verification solution, add a consumer-permissioned (bank or payroll) option as a backup. Cascading from one digital solution to the next will ensure you can verify borrower information in seconds or minutes, as opposed to days or weeks. The goal is to prevent as many borrowers as possible from going through a costly manual process. Tap into unique data sources Many verification solutions in market today tap into the same data sources, which can make it difficult to differentiate between solutions and measure additive benefits. When evaluating options, look for verification solutions that leverage unique and exclusive data sources – allowing you to optimize hit rates and maximize value. Avoid a “one-size-fits-all” approach There is no silver bullet. Every market is unique and every lender has different needs. Your verification requirements are likely specific to your business, which means you need to leverage verification solutions that offer flexible options and enable you to build a verification experience that works best for you and your borrowers. Find a solution provider who’s all in It’s important to find a solution provider where income and employment verification isn’t just a “side hustle,” but is core to their business strategy. Find a provider who is fully committed – delivering new innovations, investing in key partnerships, maximizing accessibility through leading LOS / POS technology providers, and offers eligibility for key industry programs, such as Day 1 Certainty® from Fannie Mae. Challenge the status quo Many lenders have an existing relationship with a third-party solution provider. But it’s important not to put all your eggs in one basket. If your existing provider is not meeting all your needs, challenge the status quo. Consider adding a second provider to the top of your waterfall to help contain costs and tap into unique data that is not available from your existing provider. Ready for further insight? Learn more about income and employment verification for mortgage.