There are many things that can cause angst for consumers during the holiday season including travel delays, overeating, and picking a New Year’s resolution. One of the biggest stressors is often the financial impact of holiday shopping. In fact, according to a national survey by Experian, many respondents are concerned about the financial stress of gift buying and adding debt, as well as becoming an identity theft victim. While some survey respondents feel cheerful (39 percent) and excited (38 percent) about the holidays, many believe holiday shopping is a strain (60 percent), and almost half feel obligated to spend more than they can afford (41 percent). How will they pay for holiday gifts? They will be using credit as almost half of those surveyed plan to use credit for about 25 percent of their expenditures. Unfortunately, missing payments or opening new cards can damage a consumer’s credit profile – ten percent of respondents say holiday shopping has negatively affected their credit scores. Another concern for consumers is the risk of identity theft (50 percent). Survey respondents feel the risk is both present while shopping at “brick and mortar” retail locations or online with 55 percent choosing both as equally vulnerable. While 30 percent of respondents cite online shopping as riskier, almost half still plan to shop online. View the full report in the SlideShare deck below: Experian Consumer Holiday Shopping Survey from Experian_US
On Nov. 8, 2016, citizens across the country will flock to polling stations to cast their votes for the 45th President of the United States. Until then, however, you can expect to hear a number of candidates offer their views on a plethora of political issues over the next year, including small business. As a battleground for political debate and its importance to economic success, small businesses can have a tremendous impact on the upcoming election, and those to follow. Gaining insight into the small business community is more important than ever and critical to understanding their needs and helping them grow. As part of its latest analysis on small businesses, Experian examined the financial and demographic characteristics of small-business owners by political affiliation. The research found that Republicans made up the largest percentage of the small business owner population at approximately 35 percent. They were followed by Democrats at 29.4 percent and Independents at 15.8 percent. Findings from the study also showed that small-business owners who identify as Independent may have the most education experience. More than 73 percent of Independents have some college experience, and 45 percent have earned a bachelor’s degree. Comparatively, 72.3 percent of small-business owners who identify as Republican have some college experience and 44.1 percent have earned a bachelor’s degree, while Democrats account for 66 percent and 39.3 percent, respectively. When it comes to the credit and payment behavior of these small-business owners, the research found that Republicans have the highest average business loan balances and the second-highest consumer loan balances at $9,823 and $193,483, respectively. Democrats fell on the other end of the spectrum with the lowest average business ($7,540) and consumer ($172,653) loan balances. Furthermore, Republican small-business owners demonstrated good payment behavior, with the lowest delinquency rates (91-plus days) for commercial and consumer credit cards at 0.98 percent and 5.8 percent, respectively. For a more in-depth look into the characteristics of small-business owners by political affiliation, register for our Webinar that will take place on Jan. 20, 2016 at 1 p.m. Eastern time. Painting a clearer picture of the small business community, enables government officials, lenders and business professionals to better understand the ins and outs of small-business owners, and gain insight into what matters most to them. Small businesses are the backbone of our economy and fixtures in the local community. By addressing the needs of small businesses, and setting them up for success, our economy and society can continue to prosper.
Small Business Saturday is just around the corner, and as it approaches there are a growing number of advertising campaigns encouraging consumers to forego the big box retailers in favor of shopping local. As a supporter of my own neighborhood small businesses, I can appreciate the effort. After all, the success of small businesses is what really drives our economy forward. Not only do they provide employment opportunities for those in the community, but small businesses often bring a level of innovation and can stimulate growth. However, in the midst of the day-to-day activities, especially during the holiday season, small business owners often overlook a crucial component of their businesses – their business credit. While some small business owners may not realize it, a business’s credit profile can be as critical to its success as heavy foot traffic. At Experian, we’re committed to educating small business owners on the importance of business credit, as well as how they can make their business credit work for them. The actionable insights available through a small business’s credit profile can help position it for new growth opportunities. To help keep small business owners on track this holiday season, below are seven tips to help prevent these often overlooked aspects of business credit. Get your business credit profile into the best shape ever. A positive business credit profile can help your business grow. Lenders and suppliers often make lending decisions and determine interest rates based on the information within your business credit report. Access to financial capital at affordable rates enables small businesses to order inventory, pay employees or expand into new areas. Separate your business credit profile from your consumer credit profile. Building a separation between the two can help your business develop credibility that matters to banks, suppliers and other lenders, as well as protects your consumer credit should your business run into hard times or vice versa. Encourage your creditors and suppliers to report your payment history to commercial credit bureaus. Just because you have a business, do not assume you have a business credit report. Unless your creditors are reporting timely payments to commercial credit bureaus, a good track record will not impact your business credit profile. Pay bills on time! Sound payment practices are key to a solid business credit profile. Timely payments can demonstrate your ability to adhere to agreed-upon credit terms and show that your business is a low credit risk. Be consistent. Making timely payments for an extended period of time is healthy. Just as anything else, a longer track record indicates consistent behavior. The longer a positive commercial account is open, the more confidence a lender can when extending loan terms. Continually monitor your business credit report for accuracy. As small businesses grow and change over time, basic facts about the business can frequently change. It’s important to keep updated information and avoid unpleasant surprises, especially when applying for a loan. Consistent monitoring will also enable owners detect potential business fraud. Check the commercial credit reports of current and potential suppliers. Understanding a potential supplier’s credit history can help identify which businesses you want to do business with. For instance, you may gain insight whether or not a supplier can deliver materials to your business in a timely manner. Small business owners can also learn about the fundamentals of business credit and its impact on a business’s growth during an Experian hosted tweet chat on Thursday, Nov. 12 at 1:00pm Pacific time. You can follow the conversation using #BizSmallTalk. As the saying goes, “knowledge is power.” By gaining a deeper understanding of the ins and outs of business credit, and leveraging the insights from their business’s credit profile, small business owners will be able to open new doors and take their companies to new heights.
Today, we stand at the forefront of a digital revolution that is reshaping the financial services industry. And, against this backdrop, financial institutions are at vastly different levels of maturity; the world’s biggest banks are managing large-scale infrastructure migrations and making significant investments in AI while regional banks and credit unions are putting plans in place for modernization strategies, and fintechs are purpose-built and cloud native. To explore this more, I recently had the privilege of attending the annual Reuters NEXT live event in New York City. The event gathers globally recognized leaders across business, finance, technology, and government to tackle some of today’s most pressing issues. On the World Stage, I joined Del Irani, a talented anchor and broadcast journalist, to discuss the future of lending and the pivotal role of data and AI in building a more inclusive financial system. Improving financial access Our discussion highlighted the lack of access to traditional financial systems, and the impact it has on nearly 100 million people in North America alone. Globally, the problem affects over one billion people. These people, who are credit invisible, unscoreable, or have subprime credit scores, are unable to secure everyday financial products that many of us take for granted. What many don’t realize is, this is not a fringe subset of the population. Most of us, myself included, know someone who has faced the challenges of financial exclusion. Everyday Americans, including young people who are just starting out, new immigrants and people from diverse communities, often lack access to mainstream financial products. We discussed how traditional lending has a limited view of a consumer. Like looking through a keyhole, the lender’s understanding of the person in view is often incomplete and obstructed. However, with expanded data, technology, and advanced analytics, there is an opportunity to better understand the whole person, and as a result have a more inclusive financial system. At Experian, we have a unique ability to connect the power of traditional credit with alternative data, bringing a more holistic understanding of consumers and their behaviors. We are dedicated to leveraging our rich history in data and our expertise in technology to create the future of credit and ultimately bring financial power to everyone. The future of lending After spending two days with over 700 industry leaders from around the world, one thing is abundantly clear: much like the early days of the internet, today, we are at the cutting-edge of a technical revolution. Reflecting on my time at Reuters NEXT, I am particularly excited by the collective commitment to drive innovative, and smarter ways of working. We are only beginning to scratch the surface of how data and technology can transform financial services, and Experian is positioned to play a significant role. As we look to the future, I am excited about the ways we will create new opportunities for businesses and consumers alike.
The advertising ecosystem has seen significant transformation over the past few years, with increased privacy regulation, changes in available signals, and the rise of channels like connected TV and retail media. These changes are impacting the way that consumers interact with brands and how brands understand and continue to deliver relevant messages to consumers with precision. Experian has been helping marketers navigate these changes, and as a result, our marketing data and identity solutions underpin much of today’s advertising industry. We’re committed to empowering marketers and agencies to understand and reach their target audiences, across all channels. Today, we are excited to announce our acquisition of Audigent—a leading data and activation platform in the advertising industry. With Audigent’s combination of first-party publisher data, inventory and deep supply-side distribution relationships, publishers, big and small, can empower marketers to better understand their customers, expand the reach of their target audiences and activate those audiences across the most impactful inventory. I am excited to bring together Audigent’s supply-side network as a natural extension to our existing demand-side capabilities. Audigent’s ability to combine inventory with targeted audiences using first-party, third-party and contextual signals provides the best of all worlds, allowing marketers to deliver campaigns centered on consumer choices, preferences, and behaviors. The addition of Audigent further strengthens our strategy to be the premier independent provider of marketing data and identity, ultimately creating more relevant experiences for consumers. To learn more about Experian and Audigent, visit https://www.experian.com/marketing/ and https://audigent.com/.
When it comes to cybercriminals and threat vectors, we need to expect the unexpected. Experian’s 12th annual Data Breach Industry Forecast highlights several potential trends for 2025, with AI playing a central role. This year has already seen more data breaches and impacted consumers than 2023, indicating that global data breaches are not slowing down. Some things to watch out for next year includes the potential for more internal fraud. As companies train employees on AI, there is a growing risk that some will misuse their knowledge for internal theft and sourcing sensitive information. Another trend may be cyberattackers targeting large data centers, with the growth of generative AI introducing power as a new attack vector. It’s reported that a single ChatGPT query uses significantly more electricity than a standard Google search, making data centers and cloud infrastructure vulnerable, especially in countries with varying security standards. We expect AI-related attacks to dominate the headlines next year and investments in cybersecurity will increase to tackle this emerging threat, as hackers leverage AI for phishing, password cracking, malware, and deepfakes. Jim Steven, Head of Crisis and Data Response Services at Experian Global Data Breach Resolution in the UK, anticipates that global data breaches will persist at their current rate next year. He notes that ransomware attacks are likely to become even more sophisticated with the integration of AI. Additionally, Steven predicts that threat actors will escalate their tactics to achieve greater rewards, and the misuse of consumer data to damage reputations will increase in 2025. To access the complimentary report, click here.