From renting a first apartment, buying a family vehicle or purchasing a home – credit can unlock significant opportunities for consumers. Yet, financial exclusion affects millions of people around the world, limiting access to the basic tools needed for personal and economic growth. At Experian, we’re committed to changing this dynamic, but our journey towards financial inclusion and creating equitable access to credit is more than just a mission statement; it's ingrained in our DNA. It is our purpose and is reflected in every innovation we introduce. Whether it's our Experian Lift family of credit scores, which can improve access to credit for nearly 50 million credit invisible and thin-file consumers, or Experian Boost which empowers consumers to self-report various bill payments to enhance their credit profiles – each initiative is a steppingstone towards realizing our purpose and helping consumers live more financially empowered lives. A consumer’s credit report is the most effective means to assess lending risk. However, we believe transaction data, including checking and savings account information, plays a crucial role in advancing financial inclusion and provides a more comprehensive and accurate view of an individual's financial profile, particularly for thin file and credit invisible consumers, when layered with traditional credit report data. We also know 71% of consumers would be willing to share access to their banking information if doing so could improve their likelihood of getting approved for credit. [1] To support this, we’ve reached a meaningful milestone with the launch of Experian Cashflow Attributes™. Now, lenders who have proper consent to leverage consumer transaction data in decision-making, can tap into over 900 income, cashflow and affordability attributes from Experian across the customer lifecycle – which can provide a more accurate view of consumers’ financial health. By incorporating banking transaction insights into decisions, organizations can expand opportunities while mitigating risks. We are focused on making cashflow data more accessible with the proper consent while ensuring consumers are empowered and maintain control over their data. By leveraging banking transaction information, organizations can create opportunities for new and existing customers that might not have otherwise been possible. As we look ahead, we will continue to invest in open banking technologies, capabilities and introduce modern solutions that will help bring financial power to all. [1] Experian commissioned Atomik Research to conduct an online survey of 2,005 adults throughout the United States. The makeup of the sample is representative of the U.S. population based on national census data regarding demographic variables such as gender, age and geographical regions. The margin of error for the overall sample is +/- 2 percentage points with a confidence level of 95 percent. Fieldwork took place between March 17 and March 21, 2024.
Innovation isn't just about creating the next big thing. It can solve problems, improve lives, and help businesses stay ahead in a rapidly changing world. So, what drives innovation? It starts with a culture of collaboration and entrepreneurship that inspires creativity. Our North America headquarters are in the center of Orange County, a community that fosters an environment where ideas flourish and partnerships thrive. For years, we’ve worked with Octane, a local non-profit organization focused on driving innovation and growth by connecting people, resources and capital to build a better future. Experian is committed to disrupting the status quo and supporting an environment where creativity can be unleashed. Armed with the power of data and the latest technologies, such as generative AI, we believe we can help better financial outcomes for the consumers and businesses we serve. I recently gave a keynote at Octane’s annual Tech Innovation Forum during OC Innovation Week, exploring how businesses can unleash creativity through the use of generative AI and highlighting five tenets companies can consider for the responsible use of generative AI, including: Engage with purpose: It’s important that companies identify their purpose in using the technology and how it can positively impact their business, employees and customers. They should start with creating a plan, including deciding who will be using AI, what jobs need to be done, what guidelines need to be set and a review process. Elevate creativity and drive automation: Businesses should harness AI to automate processes that are mundane or labor-intensive to enable employees to focus more of their time and energy on creativity. Excite, educate, and train employees: To ensure all employees understand the potential of generative AI, businesses should prioritize education and training for all employees from the start. This includes finding evangelists of the new technology within the company to stay up-to-date on the latest news and get teams excited about the possibilities. Ensure ethical, compliant and responsible use: In addition to employee trainings, it’s important to set up a group of leaders, such as a risk council, that can handle ongoing opportunities and risks and codify guidelines on the ethical usage of AI. Embrace change and be agile: With any new technology, companies need to be agile and ready to adapt to whatever changes may come. It’s important to foster a culture of learning to constantly evolve the generative AI landscape for the company and its clients. Innovation can fuel economic growth, drive progress, and shape the future. We’re dedicated to fostering a culture of innovation and collaboration that creates opportunities for generations to come. Photo by © Octane/Michael Baker
In a panel discussion at a Bloomberg-hosted panel titled "AI and Data Analytics: The Path to Unleashing Hidden Insights," Diksha Gera, a Senior Analyst at Bloomberg Intelligence, moderated a session that included key insights from Shri Santhanam, Executive Vice President and General Manager of Software, Platforms, and AI at Experian. Santhanam shared his thoughts on the transformative influence of generative AI (GenAI) within the financial sector, underlining its potential to revolutionize traditional practices. Enhancing Core Processes Santhanam illustrated how GenAI is altering the landscape of financial institutions. By automating intricate tasks, improving customer interactions, and expediting product development, this technology is pivotal. It transforms time-intensive tasks into more efficient processes, significantly enhancing productivity. This shift allows employees to focus on more strategic, higher-value work, thereby boosting the overall efficiency of financial institutions. Managing Risks and Ensuring Compliance With the adoption of GenAI comes a host of inherent risks—privacy concerns, data integrity issues, and challenges in regulatory compliance. Santhanam underscored the critical need to balance these innovative strides with stringent security measures that protect customer data and comply with existing regulations. The commitment to aligning practices with regulatory standards and ethical guidelines is paramount as the financial sector continues to integrate AI into its core operations. Governance and Collaboration Effective governance is essential for the successful deployment of GenAI in finance. Santhanam advocated for a collaborative approach that includes risk management, legal, and technical teams. The development of robust governance frameworks supports ethical and compliant AI applications, which are crucial for fostering responsible innovation within the industry. The Future of GenAI Looking forward, Santhanam pointed to several trends that are shaping the future of GenAI in the financial sector. These include pressures to reduce costs, increased demand for personalization, and the necessity for user-friendly interfaces. GenAI is set to play a key role in delivering personalized, efficient, and accessible financial services that respond to the evolving needs of customers. These insightful discussions, spearheaded by industry leaders like Bloomberg and moderated by experts such as Diksha Gera, emphasize Experian's leading role in navigating the potential and challenges of AI in financial services. The journey towards a more innovative and inclusive financial ecosystem is well underway, driven by the transformative capabilities of GenAI.
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.