With the number of consumer visits to bank branches having declined from 52% of people visiting their bank branch on a monthly basis to 32% since 2015, the shift in banking to digital is apparent. Rather than face-to-face interaction, today’s financial consumers value remote, on-demand, services. They expect instant credit decisioning, immediate account funding, and around-the-clock customer assistance. To adapt, financial service providers see the necessity to respond to consumers’ growing expectations and become part of their overall digital lifestyle. Here are a few ways that financial services can adjust to changing consumer behavior: Drive mobile app activity With more than 50% of the world’s population actively using smartphones, the popularity of mobile banking apps has soared. Mobile apps have revolutionized the banking sector by facilitating easier communication between clients and institutions, offering value-added services, and introducing blockchain technologies. Consumers use mobile banking apps to pay bills, transfer funds, deposit checks, and make person-to-person payments. In fact, according to a study by Bank of America, more than 60% of millennials use mobile apps to make person-to-person payments on a regular basis! Financial institutions who launch new, or invest in enhancing existing mobile apps, can lower their overall costs, increase ROI, and maintain customer loyalty. Provide convenience and rewards CGI conducted a survey on emerging financial consumer trends, focusing on bank customers’ top requirements. Results confirmed that 81% of respondents expected to receive some form of an incentive from their primary banks. Today’s financial consumers may reasonably be won over by service offerings. They want rewards, limited fees, and convenience. As an example, Experian’s Text for CreditTM simplifies the credit process by providing customers with instant credit decisioning through their mobile devices. Personalized offers based on customer behavior can help enhance your brand and attract new customers. Stay connected Today’s consumers expect instant service and gratification. Consumers prefer to work with banks who offer accessible and responsive customer service. According to a recent NGDATA consumer banking survey, 41% of banking customers report that poor customer service is the primary reason they would leave their bank. Mintel suggests developing an omnichannel experience aligned with consumer media consumption. Stay connected with consumers through mobile apps, chatbots, social media, and email. Ensure that all interactions are relevant and helpful and immediately alert customers of any institutional issues or changes. The growing digital demands of consumers are influencing how people purchase banking, lending, and credit services. These changes are driving increased urgency for financial service institutions to adopt real-time financial processes that meet demands for convenience and speed. Interested in more best practices? Watch our On-Demand Webinar

For most businesses, building the best online experience for consumers requires a balance between security and convenience. But the challenge has always been finding a happy medium between the two – offering enough security that won’t get in the way of convenience and vice versa. In the past, it was always believed that one would always come at the expense of the other. But technology and innovation is changing how businesses approach security and is allowing them to give the maximum potential of both. Consumers want security AND convenience Consumers consider security and convenience as the foundation of their online experience. Findings from our 2019 Global Identity and Fraud Report revealed approximately 74 percent of consumers ranked security as the most important part of their online experience, followed by convenience. In other words, they expect businesses to provide them with both. We see this with how consumers are typically using the same security information each time they open a new digital account – out of convenience. But if one account is compromised, the consumer becomes vulnerable to possible fraudulent activity. With today’s technology, businesses can give consumers an easier and more secure way to access their digital accounts. Creating the optimal online experience More security usually meant creating more passwords, answering more security questions, completing CAPTCHA tests, etc. While consumers are willing to work through these friction-inducing methods to complete a transaction or access an account, it’s not always the most convenient process. Advanced data and technology has opened doors for new authentication methods, such as physical and behavioral biometrics, digital tokenization, device intelligence and machine learning, to maximize the potential for businesses to provide the best online experience possible. In fact, consumers have expressed greater confidence in businesses that implement these advanced security methods. Rates of consumer confidence in passwords was only 44 percent, compared to a 74 percent rate of consumer confidence in physical biometrics. Consumers are willing to embrace the latest security technology because it provides the security and convenience they want from businesses. While traditional forms of security were sufficient, advanced authentication methods have proven to be more reliable forms of security that consumers trust and can improve their online experience. The optimal online experience is a balance between security and convenience. Innovative technologies and data are helping businesses protect people’s identities and provide consumers with an improved online experience.  

Be warned. I’m a Philadelphia sports fan, and even after 13 months, I still relish in the only Super Bowl victory I’ve ever known as a fan. Having spent more than two decades in fraud prevention, I find that Super Bowl LII is coalescing in my mind with fraud prevention and lessons in defense more and more. Let me explain: It’s fourth-down-and-goal from the one-yard line. With less than a minute on the clock in the first half, the Eagles lead, 15 to 12. The easy option is to kick the field goal, take the three points and come back with a six-point advantage. Instead of sending out the kicking squad, the Eagles offense stays on the field to go for a touchdown. Broadcaster Cris Collingsworth memorably says, “Are they really going to go for this? You have to take the three!” On the other side are the New England Patriots, winners of two of the last three Super Bowls. Love them or hate them, the Patriots under coach Bill Belichick are more likely than any team in league history to prevent the Eagles from scoring at this moment. After the offense sets up, quarterback Nick Foles walks away from his position in the backfield to shout instructions to his offensive line. The Patriots are licking their chops. The play starts, and the ball is snapped — not to Foles as everyone expects, but to running back Corey Clement. Clement takes two steps to his left and tosses the ball the tight end Trey Burton, who’s running in the opposite direction. Meanwhile, Foles pauses as if he’s not part of the play, then trots lazily toward the end zone. Burton lobs a pass over pursuing defenders into Foles’ outstretched hands. This is the “Philly Special” — touchdown! Let me break this down: A third-string rookie running back takes the snap, makes a perfect toss — on the run — to an undrafted tight end. The tight end, who hasn’t thrown a pass in a game since college, then throws a touchdown pass to a backup quarterback who hasn’t caught a ball in any athletic event since he played basketball in high school. A play that has never been run by the Eagles, led by a coach who was criticized as the worst in pro football just a year before, is perfectly executed under the biggest spotlight against the most dominant team in NFL history. So what does this have to do with fraud? There’s currently an outbreak of breach-fueled credential stuffing. In the past couple of months, billions of usernames and passwords stolen in various high-profile data breaches have been compiled and made available to criminals in data sets described as “Collections 1 through 5.” Criminals acquire credentials in large numbers and attack websites by attempting to login with each set — effectively “stuffing” the server with login requests. Based on consumer propensity to reuse login credentials, the criminals succeed and get access to a customer account between 1 in 1,000 and 1 in 50 attempts. Using readily available tools, basic information like IP address and browser version are easy enough to alter/conceal making the attack harder to detect. Credential stuffing is like the Philly Special: Credential stuffing doesn’t require a group of elite all-stars. Like the Eagles’ players with relatively little experience executing their roles in the Philly Special, criminals with some computer skills, some initiative and the guts to try credential stuffing can score. The best-prepared defense isn’t always enough. The Patriots surely did their homework. They set up their defense to stop what they expected the Eagles to do based on extensive research. They knew the threats posed by every Eagle on the field. They knew what the Eagles’ coaches had done in similar circumstances throughout their careers. The defense wasn’t guessing. They were as prepared as they could have been. It’s the second point that worries me when I think of credential stuffing. Consumers reuse online credentials with alarming frequency, so a stolen set of credentials is likely to work across multiple organizations, possibly even yours. On top of that, traditional device recognition like cookies can’t identify and stop today’s sophisticated fraudsters. The best-prepared organizations feel great about their ability to stop the threats they’re aware of. Once they’ve seen a scheme, they make investments, improve their defenses, and position their players to recognize a risk and stop it. Sometimes past expertise won’t stop the play you can’t see coming.  

The lending market has seen a significant shift from traditional financial institutions to fintech companies providing alternative business lending. Fintech companies are changing the brick-and-mortar landscape of lending by utilizing data and technology. Here are four ways fintech has changed the lending process and how traditional financial institutions and lenders can keep up: 1. They introduced alternative lending models In a traditional lending model, lenders accept deposits from customers to extend loan offers to other customers. One way that fintech companies disrupted the lending process is by introducing peer-to-peer lending. With peer-to-peer lending, there is no need to take a deposit at all. Instead, individuals can earn interest by lending to others. Banks who collaborate with peer-to-peer lenders can improve their credit appraisal models, enhance their online lending strategy, and offer new products at a lower cost to their customers. 2. They offer fast approvals and funding In certain situations, it can take banks and credit card providers weeks to months to process and approve a loan. Conversely, fintech lenders typically approve and fund loans in less than 24 hours. According to Mintel, only 30% of consumers find various banking features easy-to-use. Financial experts at Toptal suggest that banks consider speeding up the loan application and funding process within their online lending platforms to keep up with high-tech companies, such as Amazon, that offer customers an overall faster lending process from applications to approval, to payments.   3. They're making use of data Typically, fintech lenders pull data from several different alternative sources to quickly determine how likely a borrow is to pay back the loan. The data is collected and analyzed within seconds to create a snapshot of the consumer's creditworthiness and risk. The information can include utility, rent. auto payments, among other sources. To keep up, financial institutions have begun to implement alternative credit data to get a more comprehensive picture of a consumer, instead of relying solely upon the traditional credit score. 4. They offer perks and savings By enacting smoother automated processes, fintech lenders can save money on overhead costs, such as personnel, rent, and administrative expenses. These savings can then be passed onto the customer in the form of competitive interest rates. While traditional financial institutions generally have low overall interest rates, the current high demand for loans could help push their rates even lower. Additionally, financial institutions have started to offer more customer perks. For example, Goldman Sachs recently created an online lending platform, called Marcus, that offers unsecured consumer loans with no fees. Financial institutions may feel stuck in legacy systems and unable to accomplish the agile environments and instant-gratification that today's consumers expect. However, by leveraging new data sets and innovation, financial institutions may be able to improve their product offerings and service more customers. Looking to take the next step? We can help. Learn More About Banks Learn More About Fintechs

When it comes to new vehicle registration, there is one segment that stands out from the pack: crossover vehicles. According to Experian’s Q4 2018 Automotive Market Trends Analysis, over the last four years, crossovers (CUVs) have spiked in popularity, representing about a third of new vehicle registrations in 2014 (34.1 percent), but growing to nearly half the new vehicle market in 2018 (47.6 percent). In fact, the large growth in CUVs isn’t limited to just the last four years – there was a large volume of growth year-over-year compared to 2017; the share has grown nearly 4 percent. Sedans and hatchbacks, meanwhile, have seen their share decrease year-over-year. The charts below detail this change in market, based on Experian’s latest 2018 quarterly findings. Source: Experian Automotive VIO as of December 31, 2018 (light duty registered vehicles only) What’s driving this growth? Across the board, the number of light-duty vehicles on the road continues to increase, up to 275.3 million in the U.S. market, at the end of 2018, compared to 271.4 million a year prior. The growth in CUVs isn’t entirely unprecedented, as it’s been going on for a number of years.  CUVs continue to grow in popularity for a variety of reasons including: Greater visibility, as the driver sits higher than in a sedan/coupe Larger storage capacities for passengers or cargo Number of varieties available, such as size, engines, and manufactures Higher fuel efficiency than a full-size SUV or minivan Currently, there are over 130 different CUV/SUV Make/Model combos offered, and of those, the different engines, options, etc. drive that volume even higher. Source: Experian Automotive VIO as of December 31, 2018 (light duty registered vehicles only) Potential for growth Currently, there are only two CUVs among the top vehicles in the aftermarket “sweet spot.” Vehicles in the sweet spot are 6 to 12 model years old, and typically aged out of general OEM warranties for any repairs. These vehicles likely require more part replacement services, which may be performed by aftermarket service shops using parts from aftermarket part manufacturers. According to Experian data, the sweet spot has stopped falling and has settled for now. But, there is expected growth of the number of vehicles that fall into the sweet spot over the coming years. One of the segments where the aftermarket industry can begin to focus on will be CUVs. Source: Experian Automotive VIO as of December 31, 2018 (light duty registered vehicles only) The aftermarket can use this data to make more informed product decisions, specifically, around the high volume of CUVs expected to come into the sweet spot. With the number of vehicle options available on the market today, CUVs will continue to stand out as a segment to watch within the auto industry. There’s a greater story beyond the numbers and understanding how to leverage the data at hand can provide the industry with a greater understanding of CUVs and its potential for even greater growth. To learn more about CUVs/SUVs and total vehicles in operation, view the full Q4 2018 Automotive Market Trends Analysis.

While it’s a word that has only recently made its way into financial circles, consumers and businesses alike have been enjoying life in a platform world. Digital platforms connect riders with drivers, friends with family, manufacturers with buyers and sellers, and the list goes on. Digital platforms are technology-enabled business models that work to enhance efficiency, flexibility, scalability, integration, and ultimately user engagement. They’re integral to the operation and success of some of the most valuable companies in the world, including Google, Facebook, and Amazon. While digital platforms have made their way beyond high-tech to other industries, like supply chain management and logistics, financial institutions have fallen behind. The reasons why are understandable: a quickly evolving marketplace, regulatory induced risk aversion, and the need to protect data and privacy. Most of the digital platform adoption that has occurred in the financial industry has revolved around open banking, with a focus on enriching the customer experience. BBVA, for instance, recently launched a platform to enable their business clients to use white-labeled versions of BBVA products and services on-demand. But the value of digital platforms for the financial industry can go beyond how the consumer interfaces with his or her bank or credit union. Financial institutions could see the same efficiency, flexibility, and integration benefits by implementing technology platforms into their internal systems. Traditionally, financial institutions have used contrasting technology and systems across their customers’ lifecycle. From financial marketing and targeting, to acquisition and underwriting, there is ample opportunity to streamline and integrate these systems by adopting a platform architecture. The most future-forward platforms not only enable financial institutions to integrate their internal systems, but they also allow companies to seamlessly integrate their customer data with third-party data resources. The powers of data-driven answers combined with platform technology can help overcome business challenges and satisfy consumer and client demands. Is it time you and your company stepped up to the platform?

Any responsible business manager knows that protection business and client data is a vital part of running a success organization. Now a new report identifies key factors that can improve a company’s ability to avoid hacks and prevent data breaches. And here’s the good news: These tactics really work. During 2018, the number of personal records exposed in data breaches soared — a total of 446.5 million pieces of data – an increase that was more than double the number of records breached during 2017, according to the Identity Theft Resource Center. The business, healthcare and financial sectors were the top three sectors hit, with hacking being the most common form of attack. But among the companies surveyed in the latest annual study sponsored by Experian Data Breach Resolution, there are important signs of hope. Despite the startling increase in the number of records stolen by data thieves – a gain of 126 percent – the number of survey participants reporting a breach increased by just 5 percent. This trend demonstrates that while hackers might be grabbing more data when they do manage to crack a database, the smaller increase in total breaches reported in the survey indicate that a growing number of institutions are improving their abilities to fend off cybercriminals. What’s their secret?  To encourage more effective strategies to handle and prevent breaches, “Is Your Company Ready for a Big Data Breach?” uncovers several important lessons learned from companies that are successfully insulating themselves – and their customers – from data theft.  Prevention is the best response: The overarching lesson that researches found is that an effective data breach response plan starts with preventing breaches in the first place, rather than reacting after customer and business data has been stolen. Of the 643 U.S. business people surveyed who work on privacy, compliance and IT security, 29 percent reported that their organizations had prevented any breach involving more than 1,000 records for the past two years. Rate your plan: The Ponemon researchers found that the percentage of companies that find their data breach response plans to be very effective increased from 42 percent in 2016 to 52 percent in 2018. Not surprisingly, more people at organizations that didn’t report a breach rated their response plans as effective – 62 percent – while 45 percent of those at companies that suffered data theft nonetheless felt their plans were effective.  Money matters: Ponemon researchers found that more investment in cybersecurity technology seemed to pay off. One of the most common factors among companies that prevented breaches was increased spending on technology to detect and prevent attacks. Of companies that prevented breaches, 73 percent increased their tech spending, versus 61 percent of those companies that were breached.  No train, no gain: An even bigger improvement came from training employees and making them aware of privacy and data protection issues and practices. The likelihood of a data breach was significantly reduced when awareness training specifically targeted employees and other stakeholders in business processes who work with or access sensitive or confidential personal data. At organizations that implemented training, 79 percent avoided a breach versus 69 percent of those that were hacked.  Cybersafety starts at the top: Executive engagement also matters. Making data security a priority among C-suite executives and corporate board members translates into keeping records safer. The study found that 54 percent of executives and 39 percent of directors were knowledgeable and engaged in planning data breach responses. At companies that were breached, 49 percent of executives and 32 percent of board members were involved with cybersecurity response.  Sharing is caring: Another key finding in preventing breaches is that organizations that sharing their insights and experiences in handling and preventing breaches improved their cybersafety. Operations that participated in learning about data protection and hacks from industry peers and government agencies were more likely to avoid a breach – 59 percent of those who joined sharing programs didn’t suffer an attack, while 46 percent of those participating experienced a breach.  Cybersafety is a process: Finally, organizations that want to stay cyber-safe might want to adopt the Boy Scout motto, “Be Prepared.” Companies that successfully prevented a data breach took several preventive measures to guard against attacks. That includes conducting regular reviews of physical security and access to confidential information, instituting third-party cybersecurity assessments, making data breach response part of their business continuity plans and creating backup websites that can be activated to provide content and information should a breach occur. For the study, Ponemon researchers surveyed 643 professionals working in information technology and security, compliance and privacy who deal with data breach response plans in their organizations. The entire comprehensive survey of cybersecurity practices – “Sixth Annual Study: Is Your Company Ready for a Big Data Breach?” – is available to download now. The Ponemon Institute, headquartered in Traverse City, Michigan, conducts independent research on data protection and emerging information technologies. Experian Data Breach Resolution helps businesses of all sizes manage the risk of fines, customer loss, negative press and litigation due to a breach of data, and is a subsidiary of Experian, the global leader in consumer and business credit reporting and marketing service operating in 80 countries. Download the Ponemon study Learn more about our Data Breach solutions

Whenever someone checks in for a flight, airport security needs to establish their identity. Prior to boarding the plane, passengers are required to show a government-issued ID. Agents check IDs for validity and compare the ID picture to the face of the person standing in front of them. This identity proofing is about making sure that would-be flyers really are who they claim to be. But what about online identity proofing? That’s much more challenging. Online banks certainly want to make sure they know a person’s identity before giving them access to their account. But for other online services, it’s fine to remain anonymous. The amount of risk involved in the engagement directly ties to the amount of verification and assurance needed for the individual. Government agencies care very much about identity. They won’t — and shouldn’t — issue a tax refund, provide a driver’s license or allow someone to sign up for Social Security benefits before they’re certain that the claimant’s identity is verified. Since we increasingly expect the same online user experience from government service providers as from online banks, hotel websites and retailers, this poses a challenge. How do government agencies establish a sufficient level of assurance for an online identity without sending their customers to a government office for face-to-face identity verification? To answer this challenge, the National Institute of Standards and Technology (NIST) has developed Digital Identity Guidelines. In its latest publication, SP 800-63-3, NIST helps government agencies implement their digital services while still mitigating the identity risks that come with online service provision. The ability to safely sign up, transact and interact with a government agency online has many benefits. Applying for something like unemployment insurance online is faster, cheaper and more convenient than using paper and waiting in line at a government field office. And for government agencies themselves, providing online services means that they can improve customer satisfaction levels while reducing their costs and subsequent bureaucracy. CrossCore®, was recently recognized by the independent Kantara Initiative for its conformance with NIST’s Digital Identity Guidelines for Identity Assurance (IAL2). Our document verification solution combines authoritative sources, machine learning and facial recognition technology to identify people accurately using photo-based government identification like a driver’s license or passport. The best part? Users can verify their identity in about 60 seconds, at whatever location they prefer, using their personal smartphone.

There’s recently been a significant amount of discussion about the stability of the automotive finance industry. Many fear the increase in the volume of delinquent U.S. automotive loans may be an early stage harbinger of the downfall of the automotive industry. But, the fact is, that’s not entirely true. While we certainly want to keep a close eye on the volume of delinquent loans, it’s important to put these trends into context. We’ve seen a steady increase in the volume of outstanding loan balances for the past several years – though the growth has slowed the past few quarters. And while much of the increase is driven by higher loan amounts, it also means there’s been an overall higher volume of vehicle buyers leaning on automotive lenders to finance vehicles. In fact, findings from our Q4 2018 State of the Automotive Finance Market Report show 85.1 percent of all new vehicle purchases were financed in Q4 2018 – compare that to 81.4 percent in Q4 2010 and 78.2 percent in Q4 2006. Suffice it to say, more financed vehicles will undoubtedly lead to more delinquent loans. But that also means, there is a high volume of car buyers who continue to pay their automotive loans in a timely manner. Through Q4 2018, there were nearly 86 million automotive loans and leases that were in good standing. With a higher volume of automotive loans than in the past, we should pay close attention to the percentage of delinquent loans compared to the overall market and compare that to previous years. And when we examine findings from our report, the percentage of automotive loans and leases that were 30-days past due dropped from 2.36 percent to 2.32 percent compared to a year ago. When we look at loans and leases that were 60-days past due, the percentages are relatively stable (up slightly from 0.76 percent to 0.78 percent compared to a year ago). It’s worth noting, these percentages are well below the high-water mark set during Q4 2009 when 3.30 percent of loans were 30-days delinquent and 0.94 percent of loans were 60-days delinquent. But, while the rate of delinquency is down and/or relatively stable year-over-year, it has trended upward since Q4 2015 – we’ll want to stay close to these trends. That said, much of the increase in the percentage of 60-day delinquent automotive loans is a result of a higher percentage of deep subprime loans from previous years – high-risk originations that become delinquent often occur more than 16 months after the origination. Additionally, the percentage of deep subprime originations has steadily decreased over the past two years, which could lead to a positive impact on the percentage of delinquent automotive loans. Despite rising automotive loan amounts and monthly payments, the data shows consumers appear to be making their payments on-time – an encouraging sign for automotive lenders. That said, lenders will want to continue to keep a close eye on all facets of car buyers’ payment performance moving forward – but it is important to put it into context. A clear understanding of these trends will better position lenders to make the right decisions when analyzing risk and provide consumers with comprehensive automotive financing options. To learn more about the State of the Automotive Finance Market report, or to watch the webinar, click here.    

Although half of businesses globally report an increase in fraud management over the past 12 months, many still experience fraud losses and attacks. To help address these challenges, Experian held its first-ever Fintech Fraud & Identity Meetup on February 5 in San Francisco, Calif. The half-day event was aimed at offering insights on the main business drivers of fraud, market trends, challenges and technology advancements that impact identity management and fraud risk strategy operations. “We understand the digital landscape is changing – inevitably, with technology enhancements come increased fraud risk for businesses operating in the online space,” said Jon Bailey, Experian’s Vice President of Fintech. “Our focus today is on fraud and identity, and providing our fintech customers with the tools and insights needed to grow and thrive.” The meetup was attended by number of large fintech companies with services spanning across a broad spectrum of fintech offerings. To kick off the event, Tony Hadley, Experian’s Senior Vice President of Government & Regulatory Affairs, provided an update on the latest regulatory news and trends impacting data and the fintech space. Next followed a fraud and identity expert panel, which engaged seasoned professionals in an in-depth discussion around two main themes 1) fraud trends and risk mitigation; and 2) customer experience, convenience, and trust. Expert panelists included: David Britton, Experian’s Vice President of Industry Solutions; Travis Jarae, One World Identity’s Founder & CEO; George Kurtyka, Joust’s Co-Founder & COO; and Filip Verley, Airbnb’s Product Manager. “The pace of fraud is so fast, by the time companies implement solutions, the shelf-life may already be old,” Britton said. “That is the crux – how to stay ahead. The goal is to future-proof your fraud strategy and capabilities.” At the close of the expert panel, Kathleen Peters, Experian’s Senior Vice President Head of Fraud and Identity, demoed Experian’s CrossCore™ solution – the first smart, open, plug-and-play platform for fraud and identity services. Peters began by stating, “Fraud is constant. Over 60% of businesses report an increase in fraud-related losses over the past year, with the US leading the greatest level of concern. The best way to mitigate risk is to create a layered approach; that’s why Experian invented CrossCore.” With the sophistication of fraudsters, it’s no surprise that many businesses are not confident with the effectiveness of their fraud strategy. Learn more about how you can stay one step ahead of fraudsters and position yourself for success in the ever-changing fraud landscape; download Experian’s 2019 Global Identity and Fraud Report here. For an inside look at Experian’s Fintech Fraud & Identity Meetup, watch our video below.

2018 was a whirlwind of a year – though it was not surprising when Google’s 2018 “most-searched” list showed Fornite GIFs ruled the internet, Black Panther was the most-Googled movie, and the Keto diet was trending (particularly in late December and early January, go figure). But, while Google’s most-searched terms of 2018 present pure pop-culture entertainment, they miss the mark on the trends we find most meaningful being principals of the financial services industry. What about the latest news in fintech? According to Business Insider, fintech companies secured $57.9 billion in funding in the first half of 2018 alone, nearing the previous annual record of $62.5 billion set in 2015. Taking it a step further, CBInsights reports that 24 of 39 fintech unicorns are based in North America. We won’t blame Google for this oversight. Faced with the harsh reality that the “most-searched” results are based on raw-data, perhaps it’s possible that people really do find Fortnite more exciting than financial services trends – but not us at Experian. We have been closely following disruption in the financial services space all while leading the charge in data innovation. When competing in environments where financial institutions vie for customer acquisition and brand loyalty, digital experience is not enough. Today’s world demands finance redefined – and fintechs have answered the call. Fintechs are, by far, among the most innovative technology and data-driven companies in the financial services industry. That’s why we built a team of seasoned consultants, veteran account executives and other support staff that are 100% dedicated to supporting our fintech partners. With our expert team and a data accuracy rate of 99.9%, there isn’t a more reliable fintech source. Perhaps this is one financial services trend that Google can’t ignore (we see you Google)! For more information regarding Experian’s fintech solutions, check out our video below and visit Experian.com/fintech.

When it comes to relationships and significant others, debt is topping lists of what people look for - or don't look for - in their partner. Where looks, pedigree, or career trajectory were previous motivation drivers for mate selection (or at least companionship), recent studies indicate debt is a deal-breaker for many looking for love. Late payments from lifestyles past, less-than-stellar credit scores, and cancelled credit cards are all exhibits of debt and destruction influencing personal relationships, not to mention the relationship financial institutions have with these consumers. Are certain relationships – or rather, specific partners – more likely to carry debt? Women were found to be more financially vulnerable, according to the Survey of Consumer Finances, conducted by the Federal Reserve, that examined how men and women who had never been married felt about debt. Recent Experian data found that while both men and women share the same amount of revolving utilization at 30%, men carry more debt than women, $27,067 compared to $23,881 for women. Men are also more likely to have larger mortgage debt at $214,908 compared to $198,622 for women. Women have more credit cards and more retail cards but lower balances than men on both. From a generational viewpoint, Gen X and Boomer generations have a higher than average number of credit cards and higher than average number of retail cards (and the highest average balance on credit cards and retail cards). Gen X also has the highest average debt by generation for both non-mortgage and mortgage debt. While Boomer and Silent Generations have lower than average mortgage debt, the boomer generation still has higher than average non-mortgage debt. With nearly 3 in 4 American adults saying they would reconsider their romantic relationship because of their partner’s debt, consumers should consider revamping their balance sheets before updating their online dating profiles. For the hopeless romantics, the star-crossed lovers, and those instead celebrating Singles Awareness Day whose finances could use a little love, perhaps a digital collections portal or personalized options to consolidate debt might speak to their love language. Or, in the meantime, maybe a list of the top cities for singles with the best credit scores could be a start.

Like every other industry, the automotive market is driven by consumer preferences and behavior. While there are a myriad of options to choose from, fuel-type seems to dominate media headlines as a hot topic of conversation among industry pundits and consumers, alike. Little surprise then that alternative fuel vehicles, which include diesels and hybrids, have maintained a steady demand over the past few years. But, there’s a specific segment that’s beginning to emerge. As we detailed in our earlier blog series, electric vehicles (EVs) are began to stand out as a prominent alternative fuel vehicle. And during Q3 2018, we saw more of the same. EVs held 1.8 percent share of total vehicle registrations. While that number may seem small, consider this.  Just two years ago, in 2016, EVs comprised only 0.5 percent of registrations, growing at a much slower pace since 2014, when it was 0.4 percent. It’s worth noting that gasoline-powered cars still dominate the market, making up 92.9 percent of registered vehicles through Q3 2018. But, the demand for alternative fuel type options should not be underestimated. Alternative fuel vehicles are becoming a significant segment in today’s auto market, and the large growth in EVs are a testament to that growth. While EVs are proving to be a popular option compared to other alternative fuel types, other options remained steady. Diesel vehicles maintained 2.8 percent of the market year-over-year, while hybrid vehicles saw a slight increase since 2017, growing from 2.6 to 2.8 percent of the market. A picture of the alternative fuel buyer So, who’s investing in these alternative fuel vehicles? We see that most buyers tend to be married, single family home owners with a college education, and belong to either the Baby Boomer generation or Gen X. It’s interesting to note that EVs make up a notable percentage of registrations of alternative fuel type preferences across generational car buyers, according to Q3 registration data. Among Baby Boomers, EVs fall second to hybrids, accounting for 1.0 percent of registered alternative fuel type vehicles compared to 1.2 percent respectively. But, EVs made up the biggest share of alternative fuel type registrations among Millennials (1.1 percent) and Gen X’ers (1.2 percent). With the number of vehicle options available on the market today, EVs stand out as a segment to watch within the auto industry. There’s a greater story beyond the numbers and understanding how to leverage the data at hand can provide the industry with a greater understanding of the EV market and its potential. To learn more about the electric vehicle market and other alternative fuel type vehicles, view the full Q3 2018 Automotive Market Trends Analysis webinar.

How can fintech companies ensure they’re one step ahead of fraudsters? Kathleen Peters discusses how fintechs can prepare for success in fraud prevention.

From a capricious economic environment to increased competition from new market entrants and a customer base that expects a seamless, customized experience, there are a host of evolving factors that are changing the way financial institutions operate. Now more than ever, financial institutions are turning to their data for insights into their customers and market opportunities. But to be effective, this data must be accurate and fresh; otherwise, the resulting strategies and decisions become stale and less effective. This was the challenge facing OneMain Financial, a large provider of personal installment loans serving 10 million total customers across more than 1,700 branches—creating accurate, timely and robust insights, models and strategies to manage their credit portfolios. Traditionally, the archive process had been an expensive, time-consuming, and labor-intensive process; it can take months from start to finish. OneMain Financial needed a solution to reduce expenses and the time involved in order to improve their core risk modeling.   In this recent IDC Customer Spotlight, sponsored by Experian, "Improving Core Risk Modeling with Better Data Analysis," Steven D’Alfonso, Research Director spoke with the Senior Managing Director and head of model development at OneMain Financial who turned to Experian’s Ascend Analytical Sandbox to improve its core risk modeling through reject inferencing. But OneMain Financial also realized additional benefits and opportunities with the solution including compliance and economic stress testing. Read the customer spotlight to learn more about the explore how OneMain Financial: Reduced expense and effort associated with its archive process Improved risk model development timing from several months to 1-2 weeks Used Sandbox to gain additional market insight including: market share, benchmarking and trends, etc. Read the Case Study