Tag: market trends

Essential personnel and organizations are working tirelessly to deliver food and other resources, not to mention, protecting the health and safety of those around us. These vehicles still require proper maintenance and care to ensure they run smoothly. That’s where the automotive industry can help.

This is the introduction to a series of blog posts highlighting key focus areas for your response to the COVID-19 health crisis: Risk, Operations, Consumer Behavior, and Reporting and Compliance. For more information and the latest resources, please visit Look Ahead 2020, Experian's COVID-19 resource center with the latest news and tools for our business partners as well as links to consumer resources and a risk simulator. Responding to COVID-19 The response to COVID-19 is rolling out across the global financial system and here in North America. Together, we’re adapting to working remotely and adjusting to our “new normal.” It seems the long forecasted economic recession is finally and abruptly on our doorstep. Recession planning has been a focus for many organizations, and it’s now time to act on these contingency plans and respond to the downturn. The immediate effects and those that quickly follow the pandemic will widely impact the economy, affecting businesses of all sizes, employment and consumer confidence. We learned from the housing crisis and Great Recession how to identify and adapt to emerging risks. We can apply those skills while rebuilding the economy and focusing on the consumer. How should you respond? What strategies should you deploy? How can you balance emerging risks, changing consumer expectations and regulatory impacts? First, let's draw upon the best knowledge we gained from the last recession and apply those learnings. Second, we need to understand the current environment including the impact of major changes in technology and consumer behavior over the last few years. This approach will allow us to identify key themes to help build-out strategies to focus resources, respond successfully and deliver for stakeholders.   Anticipate the pervasive and highly impactful market dynamics and trends The impact of this downturn on the consumer, on businesses and on financial institutions will be very different to that of the Great Recession. There will be a complete loss of income for many workers and small businesses. In a survey conducted by the Center for Financial Services Innovation (CFSI), more than 112 million Americans said that they don’t have enough savings to cover three months of living expenses*. These volatile market conditions and consumer insecurity will cause changes to your business models. You must prepare to manage increased fraud attacks, continue to push toward digital banking and understand regulatory changes.   Learn More   *U.S. Financial Health Pulse, 2018 Baseline Survey Results. https://s3.amazonaws.com/cfsi-innovation-files-2018/ wp-content/uploads/2018/11/20213012/Pulse-2018- Baseline-Survey-Results-11-16.18.pdf

Electric vehicles have 2.08 percent of total VIO share through September 30, 2019

Fintech is quickly changing. The word itself is synonymous with constant innovation, agile technology structures and being on the cusp of the future of finance. The rapid rate at which fintech challengers are becoming established, is in turn, allowing for greater consumer awareness and adoption of fintech platforms. It would be easy to assume that fintech adoption is predominately driven by millennials. However, according to a recent market trend analysis by Experian, adoption is happening across multiple generational segments. That said, it’s important to note the generational segments that represent the largest adoption rates and growth opportunities for fintechs. Here are a few key stats: Members of Gen Y (between 24-37 years old) account for 34.9% of all fintech personal loans, compared to just 24.9% for traditional financial institutions. A similar trend is seen for Gen Z (between 18-23 years old). This group accounts for 5% of all fintech personal loans as compared to 3.1% for traditional Let’s take a closer look at these generational segments… Gen Y represents approximately 19% of the U.S. population. These consumers, often referred to as “millennials,” can be described as digital-centric, raised on the web and luxury shoppers. In total, millennials spend about $600 billion a year. This group has shown a strong desire to improve their credit standing and are continuously increasing their credit utilization. Gen Z represents approximately 26% of the U.S. population. These consumers can be described as digital centric, raised on the social web and frugal. The Gen Z credit universe is growing, presenting a large opportunity to lenders, as the youngest Gen Zers become credit eligible and the oldest start to enter homeownership. What about the underbanked as a fintech opportunity? The CFPB estimates that up to 45 million people, or 24.2 million households, are “thin-filed” or underbanked, meaning they manage their finances through cash transactions and not through financial services such as checking and savings accounts, credit cards or loans. According to Angela Strange, a general partner at Andreessen Horowitz, traditional financial institutions have done a poor job at serving underbanked consumers affordable products. This has, in turn, created a trillion-dollar market opportunity for fintechs offering low-cost, high-tech financial services. Why does all this matter? Fintechs have a unique opportunity to engage, nurture and grow these market segments early on. As the fintech marketplace heats up and the overall economy begins to soften, diversifying revenue streams, building loyalty and tapping into new markets is a strategic move. But what are the best practices for fintechs looking to build trust, engage and retain these unique consumer groups? Join us for a live webinar on November 12 at 10:00 a.m. PST to hear Experian experts discuss financial inclusion trends shaping the fintech industry and tactical tips to create, convert and extend the value of your ideal customers. Register now

In today’s age of digital transformation, consumers have easy access to a variety of innovative financial products and services. From lending to payments to wealth management and more, there is no shortage in the breadth of financial products gaining popularity with consumers. But one market segment in particular – unsecured personal loans – has grown exceptionally fast. According to a recent Experian study, personal loan originations have increased 97% over the past four years, with fintech share rapidly increasing from 22.4% of total loans originated to 49.4%. Arguably, the rapid acceleration in personal loans is heavily driven by the rise in digital-first lending options, which have grown in popularity due to fintech challengers. Fintechs have earned their position in the market by leveraging data, advanced analytics and technology to disrupt existing financial models. Meanwhile, traditional financial institutions (FIs) have taken notice and are beginning to adopt some of the same methods and alternative credit approaches. With this evolution of technology fused with financial services, how are fintechs faring against traditional FIs? The below infographic uncovers industry trends and key metrics in unsecured personal installment loans: Still curious? Click here to download our latest eBook, which further uncovers emerging trends in personal loans through side-by-side comparisons of fintech and traditional FI market share, portfolio composition, customer profiles and more. Download now  

Alex Lintner, Group President at Experian, recently had the chance to sit down with Peter Renton, creator of the Lend Academy Podcast, to discuss alternative credit data,1 UltraFICO, Experian Boost and expanding the credit universe. Lintner spoke about why Experian is determined to be the leader in bringing alternative credit data to the forefront of the lending marketplace to drive greater access to credit for consumers. “To move the tens of millions of “invisible” or “thin file” consumers into the financial mainstream will take innovation, and alternative data is one of the ways which we can do that,” said Lintner. Many U.S. consumers do not have a credit history or enough record of borrowing to establish a credit score, making it difficult for them to obtain credit from mainstream financial institutions. To ease access to credit for these consumers, financial institutions have sought ways to both extend and improve the methods by which they evaluate borrowers’ risk. By leveraging machine learning and alternative data products, like Experian BoostTM, lenders can get a more complete view into a consumer’s creditworthiness, allowing them to make better decisions and consumers to more easily access financial opportunities. Highlights include: The impact of Experian Boost on consumers’ credit scores Experian’s take on the state of the American consumer today Leveraging machine learning in the development of credit scores Expanding the marketable universe Listen now Learn more about alternative credit data 1When we refer to "Alternative Credit Data," this refers to the use of alternative data and its appropriate use in consumer credit lending decisions, as regulated by the Fair Credit Reporting Act. Hence, the term "Expanded FCRA Data" may also apply in this instance and both can be used interchangeably.

There were 276 million vehicles on the road in Q1 2019.

Consumer credit trends and markets are constantly evolving, particularly when it comes to originations and delinquencies on mortgages, credit cards and auto loans. According to Experian research, over 2.7 million out of 89 million active automotive loans and leases are either 30 or 60 days delinquent. Triggers that signal a greater likelihood of consumers falling delinquent on loans, mortgages and credit card payments, include high-interest rates, a high utilization rate and recent derogatory trades. By tracking and forecasting consumer trends over time, you can more easily predict consumer behavior and better prepare for potential issues within each market. Join Gavin Harding, Experian Senior Business Consultant, and Alan Ikemura, Experian Data Analytics Senior Product Manager, during our live Quarterly Credit Trends webinar on May 30 at 2:00 p.m. ET. Our expert speakers will provide a view of the real estate market and share insights on the latest consumer credit trends. Highlights include: 2019 economic drivers Q1 2019 origination and delinquency trends Mortgage Home equity Bankcard Auto Register now

Experian’s 38th annual Vision Conference kicks off on Sunday, May 5 in San Antonio, Texas. The sold-out thought leadership conference, is known for driving discussions on the industry’s hard-hitting topics as well as introducing the latest and greatest in technology, innovation and data science. “For 38 years, Experian’s Vision Conference has connected business leaders to new ideas and solutions through cutting edge data and insights. Our goal is to power opportunities for you to target new markets, grow existing customer bases, improve response rates, reduce fraud and increase profits by using our data, analytics and technology. The intimate setting of the conference allows for unique networking opportunities with the industry’s most sought-after thought leaders,” said Klaudette Christensen, Experian’s Chief Operations Officer. A few spotlight sessions include: Several sessions about machine learning and artificial intelligence, highlighting opportunities related to best practices, underwriting and fraud detection A deep dive into the modern mortgage, leveraging insights on home equity and how to leverage data and analytics to redefine the process as it’s known today Sessions on credit delinquency, collections and the Great Recession Marketing analytics and the latest releases from Experian’s Ascend Platform Sessions on advanced analytics and integrated decisioning as they relate to commercial and consumer insights The event, which runs through Tuesday evening, continues its tradition of featuring several noteworthy keynote speakers. On Monday, Gary D. Cohn, American business leader, philanthropist and former Director of the U.S. National Economic Council, will kick off the event. On Tuesday, Aimée Mullins will take the stage discussing what is “possible” by drawing from her experiences as a record-breaking Olympic athlete, model and actress. The closing keynote will feature five-time NBA Champion and two-time Olympic Gold Medalist, Kobe Bryant. The event will also include a Tech Showcase, featuring hands-on demos for attendees to experience. Stay tuned for additional highlights and insights on our social media platforms throughout the course of the conference. Follow Experian Insights on Twitter and LinkedIn and check out #ExperianVision.

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?

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

A closer look at the data shows GM’s losses might not be particularly significant, despite the announcement of discontinued models.

I recently sat down with Kathleen Peters, SVP and Head of Fraud and Identity, to discuss the state of fraud and identity, the pace of change in the space and her recent inclusion in the Top 100 influencers in Identity by One World Identity. ----------- Traci: Congratulations on being included on the Top 100 influencers list. What a nice honor. Kathleen: Yes, thank you. It is a nice honor and inspiring to be included among some great innovators in the industry. The list includes entrepreneurs to leaders of large organizations like us. It’s a nice mix across all facets of identity. T: Tell me about your role. How long have you been at Experian? K: I lead the team that defines the product strategy for our global fraud and ID portfolio. I’ve been with Experian just over four years, joining soon after we acquired 41st Parameter®. T: What was your first job? K: My first job out of college was with Motorola in Chicago. I was an electrical engineer, working on advanced cellphone technology. T: They were not able to keep up with the market? K: The entire industry was caught by the introduction of the iPhone. All the major cellphone companies were impacted — Nokia, Ericsson, Siemens and others. Talk about disrupting an industry. T: Yeah. These are great examples of how the disrupters have taken out the initial companies. Certainly, Motorola, Nokia, those companies. Even RIM Blackberry, which redefined the digital or cellular space, has all but disappeared. K: Yes, exactly. It was interesting to watch RIM Blackberry when they disrupted Motorola’s pager business. Motorola had a very robust pager line. Even then they had a two-way pager with a keyboard. They just missed the idea of mobile email completely. It’s really, really fascinating to look back now. T: Changing the subject a little, what motivates you to get out of bed in the morning? K: One of my favorite questions. I’m a very purpose-driven person. One of the things I really like about my role and one of the reasons I came to Experian in the first place is that I could see this huge potential within the company to combine offline and online identity information and transaction information to better recognize people and stop fraud. T: What do you see as the biggest threat to organizations today? K: I would have to say the pace of change. As we were just talking about, major industries can be disrupted seemingly overnight. We’re in the midst of a real digital transformation in how we live, how we work, how we share information and even how we share money. The threat to companies is twofold. One is the “friendly fire” threat, like the pace of change, disrupters to the market, new ways of doing things and keeping pace with that innovation. The second threat is that with digitization comes new types of security and fraud risks. Today, organizations need to be ever-vigilant about their security. T: How do you stay ahead of that pace of change? K: Well, my husband and I have lived in Silicon Valley since 1997. Technology and innovation are all around us. We read about it and we hear about it in the news. We engage with our neighbors and other people who we meet socially and within our networks. You can’t help but be immersed in it all the time. It certainly influences the way we go about our lives and how we think and act and engage as a family. We’re all technically curious. We have two kids, and our neighborhood high school, Homestead High, is the same high school Steve Jobs went to. It’s fun that way. T: Definitely. What are some of the most effective ways for businesses to combat the threat of fraud? K: I firmly believe that nowadays it all needs to start with identity. What we’ve found — and confirmed through research in our recent Global Fraud Report, plus conversations I’ve had with clients and analysts — is that if you can better recognize someone, you’ll go a long way to prevent fraud. And it does more than prevent fraud; it provides a better experience for the people you’re engaged with. Because once you recognize an individual, that initiates a trusted relationship between the two of you. Once people feel they’re in a trusted relationship, whether it’s a social relationship or a financial transaction, whatever the relationship is — once you feel trusted, you feel safe, you feel protected. And you’re more likely to want to engage again in the future. I believe the best thing organizations can do is take a multilayered approach to authenticating and identifying people upfront. There are so many ways to do this digitally without disrupting the consumer, and this is the best opportunity for businesses. If we collectively get that right, we’ll stop fraud. T: What are some of the things Experian is focusing on to help businesses stop fraud? K: We’ve focused on our CrossCore® platform. CrossCore is a common access and decisioning capability platform that allows the combining and layering of many different approaches — some active, some passive — to identify a customer in a transaction. You can incorporate things like biometrics and behavioral attributes. You can incorporate digital information about the device you’re engaging with. You can layer in online and offline identity information, like that from our Precise ID® product. CrossCore also enables you to layer in other digital attributes and alternative data such as email address, phone number and the validity of that phone number. CrossCore provides a great opportunity for us to showcase innovation, whether that comes from a third-party partner or even from our own Experian DataLabs. T: How significant do you see machine learning moving forward? K: Machine learning, it has all kinds of names, right? I think of machine learning, artificial intelligence, data robotics, parallel computing — all these things are related to what we used to call big data processing, but that’s not really the trendy term anymore. The point is that there is so much data today. There’s a wealth of data from all different sources, and as a society we’re producing it in exponential volumes. Having more and more and more data is not useful if you can’t derive insights from it. That’s why machine learning, augmented with human intervention or direction, is the best way forward, because there’s so much data out there available in the world now. No matter what problem we’re trying to solve, there’s a wealth of data we can amass, but we need to make sense of it. And the way to make sense of massive amounts of data in a reasonable amount of time is by using some sort of artificial intelligence, or machine learning. We’re going to see it in all kinds of applications. We already are today. So, while I think of machine learning as a generic term, I do think it’s going to be with us for a while to quickly compute and derive meaningful insights from the massive amounts of data all around us. T: Thanks, okay. Last question, and I hope a little fun. How would you describe yourself in one word? K: Curious. T: Ah, that’s a good choice. K: I am always curious. That’s why I love living where I live. It’s why I like working in technology. I’ve always wondered how things work, how we might improve on them, what’s under the hood. Why people make the decisions they do. How does someone come up with this? I’m always curious. T: Well, thank you for the time, and congrats again on being included in the Top 100 influencers in Identity.  

According to a recent Experian credit-trend analysis, bankcard originations for all of 2014 totaled $318.7 billion, a 20 percent increase over 2013 originations of $266.5 billion. The growth trend demonstrates the importance of staying abreast of the latest credit trends in order to adjust lending strategies and capitalize on areas of opportunity. Discover key steps to developing a profitable bankcard campaign.