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 With nearly seven billion credit card and personal loan acquisition mailers sent out last year, consumers are persistently targeted with pre-approved offers, making it critical for credit unions to deliver the right offer to the right person, at the right time. How WSECU is enhancing the lending experience As the second-largest credit union in the state of Washington, Washington State Employees Credit Union (WSECU) wanted to digitalize their credit decisioning and prequalification process through their new online banking platform, while also providing members with their individual, real-time credit score. WSECU implemented an instant credit decisioning solution delivered via Experian’s Decisioning as a ServiceSM environment, an integrated decisioning system that provides clients with access to data, attributes, scores and analytics to improve decisioning across the customer life cycle. Streamlined processes lead to upsurge in revenue growth   Within three months of leveraging Experian’s solution, WSECU saw more members beginning their lending journey through a digital channel than ever before, leading to a 25% increase in loan and credit applications. Additionally, member satisfaction increased with 90% of members finding the simplified process to be more efficient and requiring “low effort.” Read our case study for more insight on using our digital credit solutions to: Prequalify members in real-time at point of contact Match members to the right loan products Increase qualification, approval and take rates Lower operational and manual review costs Read case study

BNPL is a misunderstood form of credit. In fact, many consumers are unaware that it is credit at all and view it simply as a mode of payment. This guide debunks common BNPL myths to explain what BNPL data will mean for lenders and consumers. In the past year, Experian collected more than 130 million buy now, pay later (BNPL) records from four major BNPL fintech lenders and conducted the most comprehensive analysis of BNPL data available today. The results provided valuable insights on: Who are the consumers using BNPL loans? What is the nature of their current mainstream credit relationships? What do their current BNPL behaviors look like? BNPL myth-busting: Who’s using it, how much are they spending and how risky are BNPL loans? Since BNPL launched in the United States in the 2010s, BNPL has exploded into the consciousness of online shoppers, especially during the COVID-19 pandemic.  According to Forrester, Millennials are the biggest adopters of BNPL at 18%, followed by their younger counterparts in Gen Z at 11%.1 But looking at statistics like these without additional analysis could be problematic.  The dramatic growth of leading BNPL fintechs such as Klarna, Affirm and Afterpay has demonstrated how strongly these services resonate with consumers and retailers. The growth of BNPL has attracted the attention of established lenders interested in capitalizing on the popularity of these services (while also looking to minimize its impact on their existing services, such as credit cards or personal loans). Meanwhile, the Consumer Financial Protection Bureau (CFPB) has urged caution about potential risks, calling for more consistent consumer protections market-wide and transparency into consumer debt accumulation and overextension across lenders. The underlying assumptions debated are that BNPL is used: Predominantly by young people with limited incomes and credit history To pay for frequent, low-value purchases using a cheap and readily available source of credit As a result, it is often seen as a riskier form of lending. But are these assumptions correct? Using data from more than 130 million BNPL transactions from four leading BNPL fintech lenders, we’ve obtained a more detailed and comprehensive understanding of BNPL users and their defining features. Our findings look somewhat different to the popular stereotypes. Myth 1: BNPL is used only for low-value purchases According to our analysis, most BNPL purchases, 95 percent are for items costing $300 or less.2 Some of it is low-value, but not all. In fact, we found that the average purchase using BNPL was similar to that of a credit card, at $132.Average transaction sizes have increased 10 percent year-over-year, and we now see BNPL purchases for goods costing well over $1,000. We also see that consumers take out an average of 5 BNPL loans in a year and 23 percent of them have loans with more than one BNPL provider at a time. Myth 2: BNPL is simply an easier payment method Consumers see BNPL as a simple, quick and convenient way to pay. But, as shoppers receive goods for which payment is deferred, it’s also a form of credit. However, unlike short-term high-interest loans, BNPL credit comes at zero cost to the borrower, with some, but not all BNPL fintech providers charging late payment fees – fueling many borrowers’ sense that it’s an easy way to pay, rather than a loan. Myth 3: Only Gen Z shoppers aged 25 and below are using BNPL Younger shoppers are slightly more represented in the data transactions, but our analysis shows consumers of all ages use BNPL. BNPL is going mainstream, and its appeal is widening. The average age of BNPL consumers is 36 years old, with an average credit history of 9 years.2 The ease of use of these services at the checkout means they have a broad appeal. Over half of U.S. adults have reported using a BNPL service at least once. Despite Millennials and Gen Z having used BNPL financing the most, Gen Xers are not too far behind in usage, with 52% having used it.2 We anticipate that in the use of BNPL will continue to grow as more customers become more familiar with the benefits, and the diversification of products continues. Understanding the opportunities this growth presents to both consumers and lenders is critical to protecting their interests. And helping to facilitate access to credit, enabling responsible spending, while also limiting risks and providing services that consumers can afford is also critical. Download the full guide for additional myths we’re exposing We will take a deep dive into what our early data analysis suggests about the market and the BNPL myths our analysis is exposing. Additionally, we will examine: Why BNPL data matters to providers and lenders How BNPL data can improve visibility of consumers’ creditworthiness Ways in which transparency of BNPL data could benefit consumers 1The Buy Now, Pay Later (BNPL) Opportunity,” Forrester Report, April 29, 2022.2Experian data and analytics derived from 130M+ BNPL transactions

It's easy to ignore a phone call—especially from an unknown number—or delete an email without looking past the subject line. Even physical letters get thrown out without being opened. But nearly everyone will quickly open and read a text. Surveys have repeatedly found text message open rates can range from around 90 to 98 percent. And now, debt collectors that are serious about streamlining operations and connecting with consumers via their preferred channel can integrate text messaging into their process. Learn more Using text messages in debt collection It's been a couple of years since the Consumer Financial Protection Bureau (CFPB) revised Regulation F, which implements the Fair Debt Collection Practices Act (FDCPA). The ruling was effective starting November 2021 and confirmed that debt collectors could use emails, text messages and other digital communication channels. Businesses in many other industries have been communicating with customers by text for years. At a high level, the changes to Regulation F allow debt collectors to add new outreach methods to their debt collection tools. However, even with the go-ahead to communicate via text, strategy and compliance must be top of mind. WATCH: Webinar: Keeping pace with collections compliance changes The move to digital debt collections Incorporating text messaging could be part of a larger shift toward digitizing operations. Some debt collection agencies are also using artificial intelligence, big data and automation to help verify consumers' contact information, assist call center agents and follow up with consumers. As the Experian 2022 Global Insights Report reports, 81 percent of consumers think more highly of brands if they have a positive online experience with that brand that involves multiple digital touchpoints. And over half of consumers trust organizations that use AI.1 Your website or mobile app is an important starting point. And digital tools, such as chatbots that can answer common questions and virtual negotiators offering payment plans, could be part of that experience. Your automated and manual text message outreach could also be increasingly important in the coming years. The benefits of debt collection text messages A text message strategy can be part of an omnichannel approach, and it offers debt collectors a few distinct benefits: Get direct access to consumers who will likely see and read your messages. Allow consumers to respond and ask questions via a channel that may be easier or more comfortable for them than a phone call. Start a two-way dialogue and build rapport. Save time by texting multiple consumers simultaneously and automating responses to common questions. However, collection agencies also need to beware of the potential drawbacks. Consumers might see your texts as a nuisance if you frequently send messages or if you're messaging people who truly can't afford a payment right now. Many consumers are also rightly wary of scammers texting them and asking them to click on a link. You'll want to carefully think through your messaging strategy. Starting by getting consent to send a text message while you're on the phone or when the consumer fills out a form online—and then immediately sending a text with an opt-in—can help overcome this potential barrier. How to leverage debt collection text messages Sending payment requests via text to consumers who have a high propensity to repay, and including a link to self-service payment portals, could offer a quick and easy win. However, it may be best to think through how you'll use text messaging to optimize your outreach rather than replace other communication channels. WATCH: Webinar: Adapting to the new collections landscape Perhaps you've spoken directly with someone and helped them set up a payment plan. You could now use automated texts to remind them of upcoming payment due dates and thank them for their payments. It's a simple way to test the water without sending debt collection-related messages that may fall under stricter regulatory requirements. Staying compliant while texting As part of a highly regulated industry, debt collection agencies must consider compliance. And it's especially important to consider when trying new technology that directly interacts with consumers. Laws and rulings may change, and it's important to consult your counsel before making any decisions or implementing a text message strategy. However, at a high level, the Regulation F requires debt collectors to: Prioritize capturing consent.You must obtain direct consent from a consumer or indirect consent from an original creditor that got the consumer's consent. The initial communication before sending a text or email must be written. Debt collectors that use specific procedures for obtaining consent may receive safe harbor protections against inadvertent disclosures to third parties. Make opting out easy. You must send consumers a clear and conspicuous opt-out notice and offer them a reasonable and simple method to opt out of text messaging or other electronic communications. Debt collectors must identify when they receive an opt-out request, even if the request doesn't follow their specific instructions. For example, if a consumer sends “end," you may need to recognize that as an opt-out even if your opt-out instructions tell them to send “stop." Continue complying with FDCPA harassment guidelines. There's no specific federal limit on how often you can text consumers. However, you'll still need to comply with the FDCPA's general rules regarding harassment and contacting consumers at convenient times. In general, you may want to send texts between 8 a.m. and 9 p.m. local time (for the consumer), unless they request a different time. Limiting how many texts you send can also improve consumers' experiences and may lead to better long-term results. Reconfirm consent every 60 days. Even if consumers don't opt out, the implied or expressed consent you received could only be valid for 60 days. To continue texting a consumer, you may need to have them reconfirm their consent or use a complete and accurate database to confirm that their phone number was not reassigned.2 You may also be subject to more stringent state or local laws. For instance, Washington State laws might prohibit debt collectors from sending more than two texts in a day.3 And Washington, D.C. forbids debt collectors from initiating communications with consumers via written or electronic communications (including text messages) during and for at least 60 days following a public health emergency. READ: A Digital Debt Collection Future: Maximizing Collections and Staying Compliant Partnering with Experian Experian offers access to vast data sources, skip tracing tools for collections and advanced analytical capabilities that help debt collectors move into the digital age. From optimizing outreach with the AI-driven PowerCurve® Collection to verifying real-time phone ownership using Phone Number ID™ with Contact Monitor™, you can integrate the latest technology while remaining compliant. You can then decide the best ways to use text messages, or other electronic communication methods, to make profitable decisions and maximize recovery rates. Learn more about Experian's debt collection solutions. ¹Experian. (April 2022). Experian 2022 Global Insights Report ²Consumer Financial Protection Bureau. (2023). 1006.6 Communications in connection with debt collection. ³Washington State Legislator. (2023). RCW 19.16.250 Prohibited practices