Public and private organizations worldwide are embarking on ambitious digital identity initiatives, from the tiny country of Estonia to efforts that encompass much of Africa and India. At the core, the broad goal is often the same: Use blockchain or equivalent technology to provide individuals with a unique digital identifier. That digital identity then enables seamless, secure access to services—governmental, financial, or otherwise. However, as you delve into the details of each program, there remain more differences than similarities. Organizations may have different drivers for pursuing digital identities and varied approaches. And in these early days of digital identity development, there’s not yet a single plan for aligning initiatives across the public and private sector or even within the financial services industry. So how do organizations evaluate where to invest and when to act, when efforts are progressing and changing in real-time? The impetus now is to understand the fundamentals of digital identity programs and then evaluate what your organization stands to gain—or potentially lose. Get that sorted, and you’ll be ready to make smart digital identity decisions at the right time for your company and customers. The fundamentals of blockchain Much of the digital identity conversation centers around the notion of blockchain-based digital identity programs and their benefits to consumers or citizens. Broadly, these programs enable individuals to have a digital identity profile, which is tied to a basket of attributes and stored on a blockchain. Those attributes are verified when the identity is established. Consumers then use their digital ID, for example, to access their financial applications. And organizations can verify the person via their digital identity token. Such programs provide privacy for consumers; they also promise to accelerate and secure all sorts of processes from applying for loans to paying taxes. That’s because, with a digital identity, consumers don’t need to re-submit documents or provide personal information to various businesses and entities. Instead, they can allow institutions to access their digital identity for proof of who they are. The potential for such programs is already exciting, and we’ve likely just scratched the surface of what’s possible. Still, most of the discussions leave out a critical component. That is: how will programs establish a digital identity in the first place? As financial institutions assess the digital identity landscape, digging into how programs ensure that the right information makes it into the system is paramount. As the saying goes, it’s garbage in, garbage out. Regardless of how innovative the technology is, a consumer’s digital identity is only as ​trustworthy as the information that created it. The digital identity trade-offs The security of digital identities is very compelling—especially as cybercriminals become increasingly sophisticated. Businesses can easily authenticate customers, and consumers have more control over their information, which is an issue of growing importance. A recently released Experian study shows that consumers are most concerned about protecting their financial data over other types of information. As privacy and security assurances become part of the financial service value proposition, digital identity programs will likely be a differentiator for companies. That said, doubling down on digital identity can initially seem at odds with another dual technology priority: Taking advantage of data to provide hyper-personalized financial products and services. By tokenizing identity information, organizations may need to forgo some of the data that enables that personal, customized approach. In the long run, I believe companies will find creative ways to balance privacy with personalization needs. For instance, customers may rely on digital identities to navigate their financial networks and then opt to provide additional information about themselves in return for better, more personalized service. Financial institutions will need to weigh some similar factors when leveraging digital identity programs to improve customer experience. Digital identity programs promise to remove the friction caused by customer recognition and authentication. Again, the organization may give up some data collection to enable that seamless experience. But in the long run, companies will likely find that the related improvements and revenue opportunities gained more than makeup for any sacrificed information. ​At the same time, against a backdrop of an increasing number of stolen identity records, the idea that a digital identity program can help reduce the excessive proliferation of sensitive personal data is a significant benefit. The road ahead Financial institutions should prepare for the pending digital identity journey—even if they haven’t yet embarked. There are still multiple issues that the industry, consumers, and regulators will have to settle. For instance, there’s the question of adoption and how long it will take for businesses and consumers to use digital identity programs regularly. As we’ve discussed before, consumer trust ​and availability will remain a considerable component in driving that adoption. What’s more, we’ll likely see regulations follow digital identity efforts as specific initiatives gain steam and popularity. The rules may accelerate adoption or, conversely, increase the investment expense on behalf of financial service firms. For these reasons, financial institutions need to be involved early and voice their concerns often to ensure that regulations serve consumers without adversely affecting the business. In the meantime, businesses should remain aware that digital identity is a fragmented market, which may ultimately settle into an “ecosystem of ecosystems” across programs. It will be critical for enterprises to plan accordingly if they want to become early adopters. Or, at the very least, companies with a more moderate strategy should wait until a leading program emerges before making a significant investment. Digital identities represent a dramatic shift in how consumers navigate their online world and how companies continue to meet their online expectations and needs. Keep these developments on your radar, and you’ll be prepared to make smart digital identity decisions and investments. Related stories: Infographic: Global Identity & Fraud Trends, February 2020 The impact of Covid-19 on Consumers and Businesses, July 2020 The impact of Covid-19 on Consumers and Businesses, Oct 2020

We’ve compiled the top October headlines from across the globe to keep you in the know on the latest hot topics and insights from our global experts. Q&A: Consumer and business outlooks since Covid-19 David Bernard, Senior Vice President of Global Marketing and Strategy, provides his perspective on consumer demand for digital banking and business preparedness. #TradeTalks: The Shift in Online Trends as a result of Covid-19 In this Nasdaq #TradeTalks podcast, Steve Wagner, Global Managing Director of Decision Analytics, discusses how Covid-19 is driving consumer behavior change and accelerating the shift to digital. 43% of Indian consumers record decline in household income: Experian Global The Economic Times covers global research findings on the impact of the Covid-19 pandemic on Indian consumer income, with insights from Sathya Kalyanasundaram, Managing Director, Experian India. Qual será a velocidade da retomada da economia brasileira em 2021? This Estado de Minas article explores viewpoints on what the state of the Brazilian economy will be in 2021, citing current trends across different sectors. TechBytes with Marika Vilen, SVP Platform Commercialization, Global Identity & Fraud at Experian MarTech Series speaks with Marika Vilen about meeting customer needs in the 'new normal,' managing identity and fraud prevention strategies, benefits of device intelligence, and industry trends. Stay in the know with our latest insights:

For executives and teams across the financial services sector, the question isn't should we digitally transform—but how. That's where things get tricky. According to the Financial Brand’s Digital Banking Report, when asked about the progress of their digital transformation journey, only 17% of organizations reported that their transformation was deployed “at scale” — and a scant 7% said their transformation was deployed at scale and working. Tackling an enterprise-wide transformation effort is no small feat; it requires significant investment and time. Still, many organizations become understandably discouraged when transformation efforts don't yield the anticipated results. And experts contend that transformation initiatives fail not because of products but because organizations need wholesale culture changes to sustain innovation. All that may be true. However, a boil the ocean approach can dramatically increase the timeline of an already lengthy process. By building a strategy based on small iterative wins, businesses can break down the process and deliver interim tangible successes. In doing so, organizations sustain momentum for the broader digital transformation vision and benefit from feedback along the way. Your north star In concept, digital transformation suggests that we are in a finite time and place going from point A to point B. At some point, every financial institution will be digitally transformed. Manual processes, on-premise software, and siloed data will start to disappear. And conversations about transformation will give way to discussions of how to sustain and further advance the bank's digital capabilities. There actually isn’t a “finished state”, but a continuous progress towards a better customer experience. But establishing a long-term objective for transformation initiatives is critical. The leadership team needs to have a vision, and relay the overall goal to the rest of the organization. For instance, in the Financial Brand survey, banks and credit unions noted that improving risk management and security, improving the customer experience, and reducing costs were their top areas of focus. (Unfortunately, the same study revealed that less than half of the organizations surveyed reported high success levels in transforming these areas). In establishing a digital transformation north star, you ensure that smaller projects align with the broader vision. The path there may not be perfectly straight, but leaders can prioritize initiatives that point in the same direction. Small wins, big results As noted, it's challenging to complete a digital transformation journey in one fell swoop. Most organizations can't change technologically and culturally at a rapid pace. Yet, there's a pressing need for innovation. Creating a roadmap of incremental projects and wins can ensure your organization is making steady progress toward that north star goal. I often advise digital transformation teams to start with a small project that seems achievable. That may be transitioning a non-cloud offering to the cloud or introducing an existing interface to a new geography. You solve that problem, and then you evangelize the success; even if it's a small win, you want to shout about it. It's not about nourishing your ego. Instead, the celebration helps build momentum with your frontline staff and clients. It also provides proof points for executive stakeholders. The latter makes it easier to continue funding projects once your leadership sees that the initiative produces results. Then you can begin to expand your transformation perimeter, building on each win with another digital project. Dialing in your customer recognition and improving authentication, for instance, offers areas that are ripe for innovation—especially at a time when online transactions are on the rise and customer expectations are high. The right team for the job Successful digital transformation initiatives require leadership by a core team that's well-networked across the organization. They need to be highly visible to other teams and committed to promoting the cause and selling the vision, and making noise about any success because that's a core part of their job. Leveraging data and analytics along the way is also essential. Data can help you determine which problems to prioritize. And advanced analytics offers critical insights into what's working for customers and the areas that merit attention sooner rather than later. The process of digital transformation is an evolution. Organizations that view it as such should strive for strategies that deliver wins early. That way, they can build momentum, align near-term projects around long-term goals, and reap the rewards of digital transformation throughout the entire journey. Related stories: Impact of technology on changing business operations New global research: The impact of Covid-19 on consumer behaviors and business strategies Digital transformation through cloud-first decisioning

We may not always get what we want, but in many cases, if we feel that we were treated fairly, we’re satisfied. Our July 2020 global research reveals as much—in the survey, 52% of U.S. consumers that believed that organizations treated them fairly during the Covid-19 crisis said they’d give the company more of their business. Conversely, 76% of consumers who thought businesses treated them unfairly reported that they wouldn’t be returning customers. As we progress through the pandemic, fairness will become a critical component of the customer experience. Government support for workers and businesses in many countries is ending, and we’re likely only beginning to feel the real economic impacts. Financial institutions that prioritize fairness in their customer engagements—and leverage advanced analytics and automation to help—will likely retain more customers in the near-term and build relationships that last into the future. We’ve only just begun  For most of the West, the pandemic began in earnest in March. The economic consequences were quick to follow. In our global survey conducted in July, two times as many consumers reported that they were having difficulty paying their bills compared to before the Covid-19 crisis. As a response, 20% of consumers said they were cutting back their discretionary spending, and another 13% reported that they’d dipped into their savings to make ends meet. Around the world, those who were struggling reached out to financial institutions for help. A full 5% of global consumers enrolled in some form of financial assistance, including from savings and loan institutions, retail banks, insurance companies, and government programs. Hearteningly, more than half of these consumers said they’d had a positive experience. And as previously noted, a similar percentage felt they were treated fairly. That’s the silver lining of an exceptionally challenging year. However, for consumers, the struggle will likely continue. Much of the support that financial institutions have provided came via government aid or mandates that are close to expiring. For instance, in the U.S., the CARES act required lenders to offer homeowners six months of fee-free forbearance on loan payments. With that grace period coming to an end, one lender reports that only 10% of borrowers have exited forbearance into a modified payment plan. Government assistance is running out, but the fact that entire sectors such as travel and hospitality remain incapacitated should still cause concern. Over the next year, consumers will likely continue to face financial obstacles, but with a shrinking safety net. Streamlining fairness Amidst the continued uncertainty, organizations should continue to prioritize fairness. Advanced data analytics can help with that task, and the technology also promises to make it easier and faster. Consider that in the 2008-2009 financial crisis, assessing a customer’s ability to afford a loan or credit product was primarily a manual process. Organizations faced backlogs of customers needing help and were unable to respond in a timely manner. Today, financial institutions can use advanced analytics and machine learning to leverage data, with the specific aim of assisting customers in financial straits. For instance, it may not be feasible for banks to permit customers to remain forbearance for another six months. However, they can use data to quickly and accurately determine what payments customers can afford. The technology enables organizations to scale their financial workout or accommodation efforts, reducing the manual workload. Just as importantly, the analytics also provides data to back decisions, making the process more transparent. There’s a big difference between thinking you’re being fair and being able to prove it. With an analytics program, organizations can inform customers exactly what they’re being offered and why. Understanding the data empowers customers to make better decisions about whether they accept any aid. In some parts of the world, regulators are also requesting similar assurance that the banks have provided options in the customers’ best interest. A challenge—and opportunity Fairness and trust are closely connected. And when it comes to the customer experience, incorporating both yields happier, more loyal customers. I often think back to work I did with a banking organization earlier in my career. Our NPS scores regarding our collections, recovery, and fraud team were quite good. It’s easy to assume that customers in financial distress may be less than pleased to be dealing with creditors or lenders. But the dynamic shifts when you’re able to help them at the time they need it most. Now, thanks to data and advanced analytics, financial institutions can implement fairness at every turn—limiting the economic damage to customers, reducing their own risk, and enhancing their relationships along the way. Related articles: Global research study: The impact of Covid-19 on consumer behaviors and business strategies The role of the virtual assistant: Meet consumer demand for digital experience Digitally managing your at-risk customers most impacted by Covid-19

Several months into the global pandemic and we know that general indicators of risk or stress don’t reveal enough about what’s really going on within your customer portfolios. We also know that most institutions heavily use statistical models in identifying and capturing risk drivers in order to make decisions. Active model calibration in current circumstances can have a measurable effect on approvals and expected loss within a few weeks of being implemented. Banks have managed through economic recessions and other stressed scenarios by adjusting various levers for liquidity and risk. None, however, have ever had to predict consumer behavior in a pandemic. How can credit risk executives regain control over disrupted risk models at a time of constant change? Four key actions to enact now for immediate and sustainable impact:  1. Increase the frequency of model health monitoring Many of the predictive models that financial institutions rely on aren’t stable enough to handle real-world disruptions. Nor are the models re-calibrated frequently enough to appropriately assess risk in the rapidly changing situation we currently face. Monitoring models on a quarterly basis isn’t enough, but that tends to be the average frequency for most financial institutions. Increasing the frequency of model monitoring processes and identifying the need for a change in models sooner leads to significant financial impact. Depending on the asset size of the institution and the specific use case, financial institutions can potentially save millions of dollars in lost revenue or avoided credit losses. Automating the process supports an increased frequency of monitoring while requiring less effort from your analytics team. 2. Carry out ex-ante stress testing for your models Businesses should consider using ex-ante stress testing, in light of the difficulty in maintaining the accuracy of model predictions in changing conditions as well as to meet the heavy governance requirements of new models before their actual use. Traditional ex-post processes are effective in simulating what would have happened historically had a new model been in place. This is an extremely valuable exercise but isn’t very helpful in the current stress environment which is both unique and highly uncertain. Risk managers would like to have a go-forward view on model performance for decisions being made right now, not just a look-back view on decisions made historically. Applying ex-ante stress testing allows us to simulate and analyze a range of possible outcomes based on changing macro conditions, evolving consumer behaviors, and other uncertainties like the quality of underlying data. 3. Make practical, short-term adjustments We’ve seen in previous economic downturns that models can rapidly become unfit for purpose, and the consequences may not be fully apparent until long after the start of the downturn. In such circumstances, you shouldn’t necessarily attempt to make changes that you expect to be robust for many months into the future. There’s a strong case for making adjustments that are designed to address temporary circumstances and reviewing them at an increased frequency. Some businesses are taking a conservative strategy by tightening their credit policies and decisioning strategies. Other businesses are overlaying their models with certain attributes. For example, one could look at the number of open inquiries in the past 30 days. Since we know that attribute is unstable, we can pair it with an attribute that will give you more population stability – such as average open inquiries over the past 6 months. 4. Setup for rapid re-calibration or re-build of models The decision to re-calibrate or re-build a model during the pandemic would depend on multiple factors including the business need and model use case, the performance of the existing model, and the confidence in the quality and relevance of data for the model build. However, it is important that financial institutions and other businesses are set up to rapidly update their models. They should be actively working on re-calibrating/re-building their models in a test environment, evaluate the impact, and be prepared to deploy.  The ability to rapidly update models will be a key differentiator as businesses compete to grow their portfolios and manage losses during and in the aftermath of this pandemic. As with many other aspects of our lives, credit risk management is being challenged by the new reality created by a global pandemic. Whether our response is temporary, or whether the crisis is accelerating an existing trend to be more active in model management, we need to react to maximize our portfolio performance. At the end of the day, none of us have been through a pandemic but we know our models can still work. It’s all about model accuracy and model governance and reducing error rates. By increasing the frequency and efficiency of model monitoring and re-calibration, we can drive business outcomes with more impact than ever before. Learn more: For many organizations, navigating and recovering from these volatile times will remain top priorities as they begin strategizing for the future. Get details on accelerating your digital transformation.

The Covid-19 crisis has been a bit like existing inside a shaken snow globe—it disrupted everything, and a lot remains up in the air. However, amidst the uncertainty of the pandemic, one thing has become evident: Cultivating customer trust is more critical than ever. Trust naturally generates loyalty. This is especially true during and after a crisis. For example, Experian's latest global research from July 2020 shows 52% of customers who felt that businesses treated them fairly during the pandemic plan to give those companies more of their business. That fairness bred trust and that trust will undoubtedly lead to more business. As consumers continue to increase their digital transactions, companies need to work hard to enhance customer trust. Improved identity authentication and recognition, for example, will play a key role. As everything begins to settle, those that succeed will find their business on far more steady ground. Does trust even matter? It's a good question—and the answer may be evolving in real-time. Consider that in 2019, Experian's global identity & fraud study showed that digital adoption did not indicate consumer trust of the business. "Consumers still adopt digital channels despite being highly skeptical of the businesses," the study noted. Social media provides an excellent example. Overall, most consumers distrust many of the popular social media platforms, yet they continue to use them regularly. Interestingly, widespread adoption is linked more to convenience than trust. However, this comes with a real caveat: Customers are less concerned about trust when the product is more frivolous. For instance, not trusting a media outlet or social media platform is very different from not trusting a financial institution. Also, a lack of adoption doesn't always mean that customers don't trust the business. In the financial service and payments realm, low adoption may simply reflect that customers use the platforms less regularly. Now, as consumers increase their reliance on online services, maintaining trust will be paramount. For instance, since Coronavirus began, consumers have increased their use and awareness of mobile wallets by 8%, and their use of retail payment apps by 6%. Balancing the convenience that people have needed with the necessary trust will go a long way towards keeping usage high once the crisis subsides. A virtuous cycle Within any digital experience, several components inform customer trust. You want to ensure accurate customer recognition, as well as transparency with your authentication. Robust fraud protection and positive digital experiences also play essential roles. These form the Cycle of Trust, a virtuous circle that ultimately encourages customers to share more information with your company and pursue more transactions. Our 2019 study reveals the importance of each part of this cycle, and we see it playing out now. For example, 90% of consumers are willing to participate in a more thorough identity verification process early on to have easier account access in the future. The ability to routinely and accurately recognize your customers helps build their trust in your technology and products. Also, 76% of customers have more confidence in companies that use biometrics over passwords to protect their information. That means that you can use advanced authentication strategies to enhance trust even more. Transparency also comes into play. Letting people know how you're using their information and whom you're sharing it with makes them more apt to trust your organization—and continue to share their data. The future of trust This cycle represents the goal. In practice, though, there are still quite a few challenges that prevent organizations from getting that wheel spinning. For instance, many have separated the risk assessment processes of verifying customers at signup, logging in, and transacting, so there's no seamless experience. Instead, customers navigate different solutions to onboard, authenticate their identity, and complete transactions. A company may recognize a customer at one point in the process, but not all the way through. What's more, organizations often still place the onus on the consumer for how they represent themselves in the digital world. Authentication processes require them to remember passwords or retrieve codes from their phone. But as noted, the pandemic has opened an opportunity for dramatic improvement. Consumers are at a rare moment in which they're open to change—and they're even looking for it. For example, since the beginning of the pandemic, 60% of customers say they have higher expectations for online experiences. More than half of customers are also more willing to provide organizations they trust with personal information and financial data. Finally, 44% of customers note that since Covid, they are more trusting of companies that demonstrate security. So how can you increase trust while also meeting evolving customer expectations? Organizations that pave the way will likely assume more responsibility for recognizing and authenticating customers. This starts with becoming more creative in using the data they already have access to recognize and authenticate customers. Extending this passive and continuous recognition across channels will also be necessary. Doing so connects the disparate processes and creates a more seamless digital experience. Such initiatives also remove the identity burden from the customer and kickstart that virtuous cycle. No one anticipated the Covid-19 crisis. But it's opened up the chance to create fairer, more trusting, more transparent digital experiences for everyone—and companies shouldn't pass that up. Related stories: Latest global research: The impact of Covid-19 on consumer behaviors and business strategies Better identifying your customers leads to greater trust Covid-19 as a Gateway to Fraud: Top 5 Global Fraud Trends to Watch Out for in 2020 Podcast: Securing online identity

In case you’ve missed these September headlines, we’ve compiled the top global news you need to stay in-the-know on the latest hot topics and insights from our experts. Transforming analytics into business impact CIO.com shares insight on using analytics to maximize business outcomes from IT leaders, including Shri Santhanam, Executive Vice President and General Manager of Global Analytics and AI. Global shudder: How businesses and customers are reacting to Covid-19 This MediaPost article covers global research findings on the impact of the Covid-19 pandemic, as well as perspective on the trends and what’s to come, from Steve Wagner, Global Managing Director of Decision Analytics. Experian touts Biocatch behavioral biometrics, adds Onfido face authentication for onboarding Biometric Update shares the latest on enhanced fraud detection for new account openings through a layered approach. Marika Vilen, SVP Platform Commercialization, Global Identity and Fraud, speaks to optimizing operations in today’s environment. Experian’s cloud-based solutions adapt to today’s evolving customer needs In this AiThority article covering cloud-based solutions for automating decisions, Donna DePasquale, General Manager, Executive Vice President of Global Decisioning, shares her perspective on businesses meeting the needs of today’s changing market. Why businesses need to meet the challenge of digital acceleration Steve Pulley, Managing Director of Data Analytics, offers global insights on continuing operations through an evolving digital marketplace impacted by Covid-19 in this Bdaily, United Kingdom, article. Stay in the know with our latest insights:

Whether you work for a small or big company, chances are you’ve seen budgets contract in the wake of Covid-19.  There are a lot of factors contributing to it: fluctuating economic outlooks, building up loan loss reserves, and re-directing expenditures to keep employees and customers safe and secure. A recent global study of banks and retailers found that the top area of short-term investment was securing the mobile and digital channels. In fact, it also showed that 80% of businesses put a digital identity strategy in place, a 30-point increase since Covid-19 began and 60% of businesses are planning to increase their budgets for credit risk analytics and fraud prevention, respectively. So why is it that only 32% of banks and retailers feel operationally ready for their customer’s continued demand for digital engagement? The Capex required to invest in new technology these days requires a fiercely competitive business case. Not forgetting to mention, if approved, it could be a while before you see a return on your investment. But it doesn’t mean the latest advancements and innovation available for managing credit risk or fraud risk is out of reach. Getting more out of your existing tools and technologies is easier to implement and quick to deliver results. In fact, since Covid-19 began, hundreds of clients have optimized their use of credit and fraud risk software and analytics, helping them focus on creating more meaningful customer relationships and saving them millions in potential losses. Here are two examples of how you can get the most out of your existing technologies today and a checklist for evaluating your current tools. Device recognition Beyond securing systems against Cybersecurity threats, businesses need to think like the criminals they’re trying to deflect. If it seems like the world all went digital overnight because of Covid-19, then you can bet fraudsters were one step ahead exploiting the blind spots in the customer relationships you quickly moved online. But how do you recognize your customer behind their mobile device or computer screen? One way is to discern a fraudulent (or “mimic”) device from a genuine one. Having access to this information allows you to swiftly see the same device repeating both good and bad behavior and thus have a better chance of isolating the mimic device and mitigating fraud attacks. This is done by creating a strong probabilistic measure to determine whether two events are from the same device or not. How does this help? It helps to reduce over-firing fraud velocity rules and more precisely out-sort fraud events for manual review. It’s not as complicated as it sounds, and many businesses already have access to this device intelligence data which simply requires them to either turn it on or upgrade their fraud management systems to its latest version. In fact, additional device data points are always being added, and upgrading this layer is often recommended as it can provide up to 85% improvement in performance. Bottom-line: Device data bolster the effectiveness of your customer identity and fraud defenses with little impact on operational resources and reduces friction on your customer’s digital experience. Machine learning Innovations in decision management are having an impact on areas traditionally associated with predicting consumer behavior, such as credit risk, collections, and fraud detection. The ubiquity of data nowadays requires the methods used to derive actionable insights to evolve and most lenders globally have started to adopt advanced analytics. Nearly 70% of businesses increasing their use of machine learning for determining creditworthiness since Covid-19 began. For the collections process, it has helped to determine the best way to contact a delinquent customer or the best treatment to use as a customer exits Covid-induced forbearance?  For card, mortgage, and automotive portfolios, machine learning has played a strategic role in creating and implementing pricing strategies to determine the most accurate decisions for financing terms. Perhaps it’s in fraud detection where machine learning is having the biggest impact. Unlike how it’s applied in credit risk decision strategies, machine learning used for fraud detection can be trained to learn and improve with experience without explicitly being told to do so. It excels at solving problems where the “problem space” cannot be defined easily by rules, which makes it a great complement to mature rules-based fraud management systems. Furthermore, machine learning models can take advantage of the different data points from all backing applications at the time of any single transaction, login, or submission. This produces a final decision that’s more accurate than that produced by a simple rules-based approach or manual decision matrix. Attributes that once provided minimal lift when analyzed in a silo may now provide a substantial lift to predict credit risk or prevent a fraud attack when combined with multiple data elements. Conversely, legitimate events that were inadvertently triggered by traditional fraud detection methods can be identified as authentic before having a negative impact on the customer’s experience. Bottom-line: A layered approach continues to be a key component in any credit decision or fraud detection solution and machine-learning models are the final call in your decision workflow strategy so they can leverage all the previous decision data. Checklist: Evaluate whether you’re getting the most from your decision technology Is your current solution providing the results you need? Avoid comfort in patterns and request a business review of your current solution to analyze performance. It may reveal unknown gaps and opportunities to improve your business results. How do your results compare to your peers? Some peer benchmarking is publicly available, but most vendors offer peer (blind) benchmarking using your specific performance data. It’s worth the ask! Are you using all the functionality your tool has to offer? Sometimes decision technology is implemented with a myopic focus on solving a specific problem or used in a specific area despite a broad range of functionality available that covers more use cases. Are you using the most up-to-date version of your tools? Check with your vendor right away and stay informed regarding newer versions. Upgrades generally require less effort and cost than a new solution and by continuously monitoring for the latest version, you’re able to meet current regulatory and policy standards. Are there any ‘add-ons’ available? Your existing decision technology may offer add-ons to enhance your current solution. Add-ons such as new or enriched data sets, updated scores or models or new software features may extend the business usage of a solution to different processes and within additional departments. Are your technologies integrated to enhance your credit risk and fraud risk decision workflow? Integrating your technologies can help you to execute credit and fraud strategies seamlessly with less chance for error, manual intervention, or duplicating actions across disparate systems. Technology is critical in meeting customer demand and staying competitive in any market. It can help balance the demand for internal resources while providing the service your customers deserve. But as organizations look to stay competitive, and agile through a volatile economic time, remember the importance and tangible benefits of optimizing what you already have in place. Related articles: Global research study: The impact of Covid-19 on consumer behaviors and business strategies Podcast: Banking trends and opportunities in the post-Covid-19 era Are traditional online identification methods becoming obsolete? Case study: Layered behavioral biometrics, device intelligence and machine learning 

In this episode of the Insights in Action podcast we speak with David Bernard, Senior Vice President of Global Marketing and Strategy, about managing digital transformation in the face of unprecedented challenges such as those originated by the global Covid-19 (Coronavirus) pandemic. While the internet has long been a lifeline, technology companies now appear to be the backbone of a global virtual working and collaboration scheme on a scale never experienced before. David shares his perspective on: How business leaders can help accommodate system stressors caused by evolving needs What actions and technologies can help accelerate or scale digitalization efforts Shifting to the cloud without rushing key strategic decisions Managing virtual teams "There’s a lot of comfort as a leader in seeing a solution that works — even if it’s not completely very sophisticated, and building in a Covid time — rather than doing a big ‘what’s it for’ project to design something from scratch and having a long project before implementing something that has all the bells and whistles. So, it leads to a demand for what I would call more software-as-a-service (SaaS) packages and more pre-configured solutions than the highly configurable world that we have seen in the past." - David Bernard >> Listen now to the full episode of this Insights in Action podcast

To keep you informed, we’ve gathered the top global, August headlines covering the latest insights from our experts and recent hot topics. Email attack type: Account takeoverZDNet Japan covers ATO (account takeover) fraud and the variety of techniques used in this attack type to access user accounts and ultimately steal money or sensitive information. In today’s rapidly changing economy, businesses need to get consumer recognition rightDavid Britton, VP of Global Identity & Fraud, shares insights on the disparity between businesses' confidence in recognizing consumers and consumers' lower confidence in this capability by these businesses. EDBI invests in fraud protection fintech VestaThe Straits Times, Singapore, provides an overview of this investment, including details around the increase in online fraud losses recognized across the Asia Pacific (APAC). How banks can balance UX and security amid a pandemicThis Forbes article explores the impact of Covid-19 on consumers, including the critical need for banks to balance consumer protection and good user experience. Stay in the know with our latest insights:

It was Dr. Simon Ramo’s vision of a ‘cashless society’, made possible by information and technology, that led to the creation of Experian’s business in the U.S. in the 1960s. He could see how information was going to change the way people lived and envisioned a future where systems would enable the rapid transfer of information to establish patterns of payment and individual creditworthiness. The democratization of digital financial tools and initiatives to improve financial literacy can create promising beginnings for countless disadvantaged individuals. Fast-forward to the present, and the global Covid-19 (Coronavirus) pandemic has taken the world by storm, proving a catalyst for an accelerated path towards a cashless society. Our recent proprietary research indicates that: Since Covid-19, we’ve seen growth in the use of mobile wallets (+8%), such as Apple Pay, and retail apps (+6%), such as Starbucks. The largest areas of growth for using digital payment methods are online grocery shopping (+7% increase) and ordering food (+6%). 50% of consumers globally intend to increase their online activities (banking, payments and shopping) in the next 12-months. Over the past decades, many developing countries such as India and China have recognized the value digital payments deliver to communities. Those governments are fully invested in their cashless society initiatives with a view to increase financial inclusion, improve security, boost trust online, and leverage their high mobile penetration rates to expand the adoption of mobile payments and services. A cashless society brings greater visibility into a larger number of transactions, reducing the potential risk of money laundering, bribery and corruption. It also allows central banks to have a more accurate view into how much money is in circulation, helping them prevent cash hoarding. On the other hand, businesses don’t need to maintain cash reserves, bank their cash payments or pay bank charges for withdrawing physical currency, which means that less ATMs to service and less cash to process leads to more resources to put at the service of their customers. More about our research From June 30 – July 7, 2020, we commissioned an independent research firm to survey consumers and businesses in 10 countries worldwide to understand the impact of Covid-19 on changing consumer trends and behaviors and business strategies and operations. >> See New global research insights: The impact of Covid-19 on consumer behaviors and business strategies for more insights from this study

As businesses continue to figure out the best way to operate through the global pandemic, I’ve been asked by leaders across industries to provide my thoughts and insights around the path forward for businesses, specifically around where to invest and how to manage distributed teams. While my experience drives how I answer these common questions, Experian recently released the results of a global study which helps to demonstrate where businesses are focusing their resources. In a recent global survey among financial services and eCommerce businesses, we found that most companies are focusing on the health and safety of employees and customers, with 42% of those surveyed saying this was their primary focus. Following closely was 32% of businesses who said making operational changes and managing increases in demand across channels and functions is their greatest challenge. That’s a shift from pre-pandemic times when firms were spending more on mobile and digital advancements with intent to strengthen the security of mobile/digital channels, invest advanced analytics (e.g. creation of artificial intelligence models), and improving customer digital account opening and engagement. Top questions I’ve received in the past few months:  Q: As someone with extensive experience managing technology for a distributed team, what advice would you impart to other leaders addressing this for the first time?  A: I don't think there is a single answer, but there are a few things that are mostly common sense. For example, there is a lot of ad-hoc interaction happening in an office. Therefore, consider increasing frequency of any common team and wider meetings, remotely(all-hands, daily stand-ups, staff meetings, or ask-me-anything type of meetings). To compensate for the increase in frequency, consider making these meetings shorter. Another thing is to encourage people to be on video - it adds presence and makes it much easier to collaborate. Also, make sure you have efficient comms-channels (Slack, Teams, Skype, or whatever tool your company uses) which helps with the asynchronous flow and lets everyone jump in. And put the effort in to get good tools. Poor quality connections and audio saps energy and makes it frustrating instead of being useful. It also helps during larger meetings: That way everyone can comment and jump in through a different means, without interrupting. It is also useful to be a bit more disciplined when running meetings. There are many non-verbal cues when we communicate, so to compensate for this a bit more structure (somebody moderating the discussion) may help. Conducting surveys afterward to find out what people find interesting is useful and I also think it is important to talk about the situation, making sure that people can be transparent and recognizing challenges. Finally, in the current situation, where many people have had to adjust their daily lives, we’ve seen a lot of innovation amongst the teams. Anything from virtual coffee breaks outside of regular meetings to virtual curry nights and meet-ups. I think it depends on your team's circumstances but what matters is to stay in close contact. Q: What areas do you believe are most in need of advancement in light of the ongoing global crisis and why? It is hard to predict all of the lasting changes, but I think we will see a continuing acceleration to digital, and some industries that have not had to may now be forced to shift faster — and leaders will need to balance such focus with their priority to best assist employees in a remote environment. According to a recent survey, we know that 50% of consumers anticipate increased spending on items purchased online versus in-person – both in the short-term and within the next 12 months. So, we’ll continue to see people using both remote and digital ways of working, shopping and entertainment, and that will of course continue to drive the need for companies to think about their digital offerings.  And,  by extension how to appropriately secure those transactions for the associated risk and how to make a smooth customer onboarding journey that can be fully digital. I also believe we will see a lot of new and creative use cases from software and analytics, specifically the role of AI. Specifically, we’re seeing rapid changes in behaviors and volumes, and this again emphasizes how important it is to have resilient and scalable systems that can turn around quickly. The current circumstances also highlight the importance and opportunity to take the data we have and apply analytics to drive insight into what impacts we may see and adjust our plans accordingly. This is also an area where businesses are investing. 60% of businesses we surveyed plan to increase their budget for analytics and credit risk management and businesses in the U.K., U.S., Australia, and Spain have already increased adoption of AI and advanced analytics, since Covid-19 began. I’ll continue to monitor these key areas and share significant findings, especially as the pandemic plays out longer than any of us hoped and as businesses start re-opening offices while disparate employees make the best use of resources to support customers. For more about our recent study, check out some highlights here. If you'd like to submit a question to Birger, please email GlobalInsights@experian.com