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Finding a balance between providing secure financial services and user-friendly experiences is no easy task. One of the biggest hurdles? Ensuring identity authentication is robust and reliable. Let's walk through the essentials of identity authentication, its importance, and what effective solutions look like. What is identity authentication? Identity authentication is the process of proving that an individual is who they claim to be. Unlike identity verification, which simply confirms that the provided identity information is valid, identity authentication goes a step further by ensuring that the person presenting the information is indeed its rightful owner. At its core, identity authentication relies on various methods to verify identities. These methods can range from simple password checks to more sophisticated technologies like biometrics and adaptive authentication. The goal is to create multiple layers of security that make it difficult for unauthorized users to gain access. Types of authentication methods Several types of identity authentication methods are used today. Passwords and PINs are the most basic forms, but they are increasingly being supplemented or replaced by more advanced solutions like multi-factor authentication (MFA) , biometric scans, and knowledge-based authentication (KBA). Each method has its advantages and limitations, making it crucial for financial institutions to choose the right mix. Authentication vs. verification While often used interchangeably, identity verification and identity authentication serve different purposes. Identity verification solutions confirm that the provided identity information matches public records, whereas identity authentication solutions ensure that the person presenting the information is its true owner. Identity verification is typically a one-time process conducted at the beginning of a relationship, such as when opening a new bank account. On the other hand, identity authentication is an ongoing process, ensuring that each login or transaction is carried out by a legitimate user. Though different, these processes are crucial for financial institutions. They work together to provide a robust security framework that minimizes the risk of fraud while offering a seamless user experience. READ: Learn how to overcome online identity verification challenges. Why it's important for financial institutions The importance of identity authentication for financial institutions cannot be overstated. With the rise of cyber threats and sophisticated fraud schemes like synthetic identity fraud, robust identity authentication measures are more critical than ever. Enhancing security. Effective authentication significantly enhances the security of financial transactions. By preventing unauthorized access, sensitive information and financial assets are safeguarded. Advanced solutions like multi-factor authentication solutions add extra layers of protection. Building trust with customers. Robust authentication also helps build trust with customers. When users feel confident that their accounts and personal information are secure, they are more likely to engage with the institution and utilize its services. Regulatory compliance. For financial institutions, compliance with regulatory standards is paramount. Many regulations now mandate strong identity authentication measures to protect against fraud and ensure the security of financial transactions. What to look for in an identity authentication solution The ideal solution should offer a balance between security, user experience, and cost-effectiveness. Adaptive authentication solutions use machine learning algorithms to assess the risk level of each transaction. This allows for a dynamic approach to authentication, where additional checks are only required when necessary. Multi-factor authentication (MFA) solutions add an extra layer of security by requiring users to provide multiple forms of identification. This could include something they know (password), something they have (smartphone), and something they are (biometric data). Knowledge-based authentication (KBA) solutions ask users to answer questions based on their personal information. This method is particularly useful for verifying identities during online transactions and account recoveries. Experian’s Knowledge IQSM offers KBA with over 70 credit- and noncredit-based questions to help you authenticate consumers by asking noninvasive questions that can be answered quickly by the true consumer. Comprehensive identity solutions take a holistic approach by integrating various methods and technologies. Experian’s identity solutions offer a range of services, from risk-based authentication to automated identity verification, ensuring comprehensive protection. Importance of user experience. While security is paramount, user experience should not be overlooked. The ideal identity authentication solution should be seamless and user-friendly, minimizing friction during the authentication process. READ: By adopting a consumer-centric approach to digital identity, organizations can offer customers a better experience while minimizing risk. How Experian can help Identity authentication is a critical component of modern financial institutions. By implementing robust and user-friendly solutions, organizations can enhance security, build customer trust, and comply with regulatory standards. Whether it's through adaptive authentication, multi-factor authentication, or knowledge-based authentication, the goal is to create a secure and seamless experience for users. Ready to take your identity strategy to the next level? Explore Experian’s identity solutions today and discover how they can help your institution achieve its security and user experience goals. Learn more This article includes content created by an AI language model and is intended to provide general information.

Consumer preference is an ever-evolving aspect of the automotive landscape. Every few years, we see a gradual—and sometimes significant—shift in the makes, models and fuel types that are most sought-after. And while electric vehicles (EVs) continue to be a polarized topic throughout the industry, particularly for shoppers interested in fuel efficiency, practicality, and performance, hybrids appeared to be a more intriguing option through the first quarter of 2024. According to Experian’s Automotive Market Trends Report: Q1 2024, hybrids accounted for 11.8% of new vehicle registrations, an increase from 8.8% last year. Meanwhile, electric vehicles (EVs) remained at 7.9% year-over-year and gasoline vehicles declined from 80.3% to 77.3% during the same period. While the appeal of a more fuel-efficient vehicle tops many of consumers wish lists, some people may be hesitant to invest fully into an EV. Whether there are concerns with price, battery life, range, infrastructure, etc., hybrids may be viewed as a comparable alternative for in-market shoppers. Fuel type by generation The Greatest Generation had the most hybrid registrations through Q1 2024 at 9.6%. Millennials and Baby Boomers were not far behind, each coming in at 9.2%, while Gen X made up 8.4%. Interestingly, Millennials led EV registrations at 9.8% this quarter, followed by Gen X (9.0%), Greatest (6.5%), and Baby Boomers (5.7%). As more consumers shift to alternative fuel types, understanding the demographics and behaviors of these individuals can help automotive professionals strategically tailor their products and services to meet shopper demands. Vehicle registrations on the rise Looking at overall vehicle registration trends, new vehicles saw a slight uptick through the first quarter of 2024, reaching 3.9 million, up from 3.7 million the year prior. Data showed used vehicle registrations are rising, as well—going from 9.9 million to 10.1 million year-over-year. Furthermore, utility vehicles—such as SUVs and CUVs—made up over half of new vehicle registrations through Q1 2024 at 60.1%, up from 57.4% last year. On the other hand, pickup trucks declined from 17.2% to 16.2% and sedans dropped from 16.5% to 15.7% in the same time frame. Leveraging the rise in vehicle registrations, as well as the most desired models and fuel types is key for automotive professionals as they anticipate shifts in demand and identify market opportunities. Keeping a close watch and utilizing this information strategically can also position professionals ahead of the curve and help efficiently serve their consumers’ needs in an ever-changing market. To learn more about vehicle market trends, view the full Automotive Market Trends Report: Q1 2024 report on demand. Or

First-time homebuyers (FTHBs) represent a significant portion of the homebuying market across the United States, particularly in Texas where we see the largest proportion. While an overall diverse market segment, affordability is paramount to all. Experian Housing recently examined the mortgage landscape, looking at who is buying, where, and why, uncovering both expected and surprising insights. Texas at a glance Eight of the top ten fastest-growing US cities are in Texas. Lately, Texas business growth has included large employers, such as Amazon, Oracle, Caterpillar, Chevron, and Schwab, moving or expanding to the state. Looking for a more affordable life, consumers have also made the move. No state income tax, no corporate taxes, overall lower business taxes, business incentives, and a generally favorable cost of living make it very attractive to individuals and businesses. Recent research by Experian Housing revealed Texas accounts for the largest percentage of FTHBs in the US at nearly 10.5%, based on those getting a mortgage. Among these buyers, ~72% are Generation Y (Gen Y) and Generation Z (Gen Z), meaning they are in their early 40s and younger. Defining and measuring affordability Affordability often tips the scale for prospective first-time homebuyers, particularly younger buyers, deciding to rent or buy. Texas mortgage lenders familiar with the geography of their local markets will likely have an advantage with these consumers if they understand affordability from a citywide perspective and at a hyper-focused neighborhood or zip code level. What determines affordability? Affordability can be assessed through various metrics. For the purposes of this study, Experian Housing defined affordability by calculating the rent-to-mortgage ratio. This involves comparing monthly rent payments to monthly mortgage payments. A higher rent-to-mortgage ratio suggests renters may find mortgage payments more feasible, potentially making home buying a more appealing option. According to Experian’s latest 2023 rental market report, Gen Z and Gen Y made up nearly 70% of the U.S. rental sector. When considered with their first-time homebuyer numbers in Texas and across the U.S., their importance in defining the market trend stands out. The rent-to-mortgage analysis provides important insights into whether these buyers may look to buy now or continue renting. Texas by the numbers Experian Housing examined affordability at the city and more granular, localized levels. Among those analyzed for affordability, Experian findings included: Lubbock is the most affordable city with a rent-to-mortgage ratio of 67%. Following Lubbock were Fort Worth (64%), San Antonio (63%), andEl Paso (62%) are the next cities. Among metro areas, Houston (58%), Arlington (56%), Dallas (52%) and Austin (49%). In these cities, the low to high average current home sales price rankings tracked the rent-to-mortgage ratios except for El Paso, with the 2nd lowest average sales price, but coming in 4th in the affordability metric. Lubbock had the lowest average home sales price at $212,812. El Paso had the next lowest average sales price ($216,424), then San Antonio ($269,232) and Fort Worth ($312,579). Next came Houston ($317,882), Arlington ($345,077), Dallas ($402,830), and Austin ($598,431). Is the city center or are the suburbs more affordable? A look at the city level only tells part of the story. Examining the area by zip code reveals more insights into where loan officers might direct first-time buyer prospects. In general, based on the median rent-to-mortgage payment ratio, the farther away from the city center (outer suburbs), the more affordable buying is for first-time buyers. San Antonio proved to be the notable exception where prices trended higher in the suburbs. Mortgage lenders who are savvy about these inner-market differences, set themselves up for a greater likelihood of attracting first-time homebuyers and keeping them as loyal customers. For more information about the lending possibilities for first-time homebuyers, download our white paper and visit us online. Download white paper Learn more