Margin test

Big data received a lot of press coverage in 2014; unfortunately, it wasn’t all kind. That’s too bad; because it’s not fair to lay the blame for every security lapse or e-mail misdeed squarely on big data. The truth is that some of the very technologies that are considered big data are in fact the same ones that best protect us from abuse. Like most technologies, big data can be used for good or it can be abused. However, I believe that the good that big data brings far outweighs any accompanying risks. While data security begins with common sense, and we must all deploy data security best practices, we should also appreciate the value in what big data offers. Identity verification and transaction validation rely on the massive power of big data. It is big data initiatives that safeguard more than 5.5 billion transaction events annually. When managed appropriately – and in compliance with existing laws and regulations regarding privacy – data is a force for good. At Experian we see the use of data for good every day. We see how big data is being used to serve more than 2,800 hospitals and thousands of medical practitioners. It is data processes that verify patient identities and conditions when they arrive for treatment. Additionally, by making sure patients are who they say they are, data processes verify coverage and help care-providers prevent fraud. In many cases, these systems alert patients to eligibility for aid that they were not even aware of they were entitled. Fraud prevention is particularly important in an age of electronic medical records. A combination of technology advances and recent healthcare reforms have made patient data available online to pharmacies, hospitals and labs, and patients themselves. According to a survey by the Ponemon Institute, 72 percent of healthcare organizations indicated they are only “somewhat confident” or “not confident” in the security of electronic patient data. Further, Ponemon expects that the cost of breaches could reach $5.6 billion in 2015. This is why healthcare providers are using big data to safeguard patient records by adopting identity theft protection platforms and device verification technologies – the same security mechanisms used by banks. These safeguards are possible thanks to the power of big data. It is what gives us the ability to sift through large amounts of data, find patterns and distill the insight that allows us to make better decisions, improve our business processes and ultimately, drive our economy forward. Across the country big data technology, along with analytical and consultative services, help financial institutions and businesses in all industries derive insight, which ultimately enables them to make more sound lending decisions, better manage their credit portfolios and acquire the best customers. It is the insight brought by big data that is allowing millions of renters to obtain their first lines of credit. For example, by collecting and analyzing on-time rental payments more people are building the credit histories necessary for financial and economic inclusion. These uses of data for good are stories I hope to see better publicized in the year ahead. There are examples from coast to coast. Like at the National Institutes of Health, as part of its “BD2K” (Big Data to Knowledge) initiative, which allows physicians to analyze patient data and vast health care histories databanks to determine which patients may be at greater risk of developing conditions such as diabetes or heart disease; or in Kansas City, where researchers are maximizing the productivity of their lands by studying detailed soil data. And in Indiana, where the state government is analyzing population data to prioritize funding for the most effective programs, including those that reduce infant mortality rates. Yes; we must continue to carefully safeguard our sensitive information. Yet we must also recognize that there will always be those looking to exploit any vulnerability. There comes a point where we must decide whether to embrace the benefit that comes from the power of information or allow the cynics to constrain the innovation and limit its potential. It’s unrealistic to imagine that we will stop relying on big data processing. Our financial systems, healthcare systems, and scientific advancement rely on it. Rather, our focus should be on how we protect our data. So yes, big data is good. The responsible, smart and compliant use of big data benefits people, our society and our economy. In 2015, let’s resolve to not paint big data with such a broad brush. It is my hope that in this New Year, more people will come to recognize ways to use data for good. Craig Boundy is CEO of Experian North America.

It’s been an incredibly busy few months at Experian, not only with the debut of powerful new product features, but also the recent announcement that Experian now offers its members FICO® Scores through its direct-to-consumer products. Making FICO® Scores available through Experian products will allow consumers to boost their credit confidence more than ever before – allowing them to harness the power of a widely recognized family of credit scores to make wiser decisions about their financial futures. We think that knowledge might make those folks walk taller as they head to see their lenders. You’ve probably seen these commercials on TV and YouTube, but there’s an opportunity for everyone, including small business owners. The confidence that comes from being credit-wise can help you in many situations, like when you're looking to buy a home: ] Just like the pro negotiator and her husband in this piece, we want our members to feel incredibly confident about their credit. When credit helps them maximize their dreams, those successes are something we can all celebrate. Helping people understand how their behaviors shape their credit scores is something we’re committed to at all levels because it delivers something more than just a free gift with purchase—it’s a lifetime understanding of credit that has real value. Offering FICO Scores truly enriches the product experience that our members receive, since they’re well known as the family of scores used in 90 percent of credit decisions. When they recently celebrated 25 years of the FICO® Score by ringing the starting bell at the New York Stock Exchange on January 7, the FICO team got down with their Credit Swagger and marked the occasion with some moves you may recognize from the video above: http://experian.tumblr.com/post/108254286209/synchronized-credit-swagger-nextlevel We know that people have been celebrating the power that comes from now seeing their FICO Scores from Experian data. We’ve been seeing great activity on our Facebook and Twitter accounts since the new product went live, and we see the promise of our products reflected in them. People are hearing—and truly understanding—how being credit savvy can give them that Credit Swagger you’ve seen, and help speed the clock to realizing their dreams. We’re honored to be their trusted credit and finance resource, working each day to respond to their needs as well as leading the evolution of our business landscape. We hope that you don’t see credit as a four-letter word (because it’s not!). We couldn’t be happier to bring that knowledge to life with a FICO® Score for our members. This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.

With the New Year in full swing, it’s time to start turning thoughts to pulling together all the financial documents you’ll need to prep for tax time. A recent survey commissioned by Experian’s ProtectMyID shows that more and more consumers continue to file their taxes electronically – an estimated 81 percent of respondents plan to do so in 2015—but some are still unaware of the nature of tax-related identity theft (16 percent). Further, over half of those surveyed said that they prepare their taxes themselves (59 percent), and do so on their own home computer network – with nearly all indicating that they file from their personal desktop computer or tablet (91 percent). “Most taxpayers are now filing electronically so it’s important to know how to safely submit and save tax records, keeping personal information away from cyber thieves,” said Becky Frost, senior manager of consumer education for Experian’s ProtectMyID. Of course, another big question related to taxes is how much people anticipate they may receive back, and how they plan to spend what comes back their way from Uncle Sam. 83 percent of filers plan to receive a return of some kind, with the largest group of respondents (46 percent) saying their returns will be rolled back into either investments or a savings fund, with the next largest group (34 percent) using the funds to pay down their credit card debt. Taking that return check out for a shopping spree to kick up one’s wardrobe was a much less popular option, the leading choice for only 17 percent of those surveyed. Are you prepared to assemble your documents and submit your tax information by April 15? Learn more about how others plan to file safely—and how they plan to spend that return they plan on receiving—in the survey below. Experian ProtectMyID Tax Survey Report – January, 2015 from Experian_US This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.

As many organizations look to turn data into actionable insight, a high degree of inaccurate information is limiting data insight and negatively impacting the bottom line. This is according to a new Experian Data Quality released today. On average, U.S. organizations believe 32 percent of their data is inaccurate, a 28 percent increase over last year’s figure of 25 percent. This high degree of inaccurate information causes 91 percent of respondents to believe revenue is affected by inaccurate data in terms of wasted resources, lost productivity, or wasted marketing and communications spend. This high level of inaccurate data comes despite the fact that organizations are investing in data quality. Eighty-eight percent of global companies have a data quality solution in place today and if we look ahead to the next 12 months, we see that 84 percent of companies plan to make some sort of data quality solution a priority for their business to implement for the first time or to improve upon. However, this investment is often segmented across various departments across the organization and most lack a centralized, complete data management strategy. Today we see that just one in four organizations has a sophisticated approach to data management. That lack of sophistication is driving up levels of inaccuracy and hurting the bottom line. “The cost of poor data quality is hitting home in boardrooms across the globe; most businesses, however, are perplexed because they actually are investing in data quality tools,” said Thomas Schutz, senior vice president and general manager for Experian Data Quality. “While data quality technology is certainly a requirement, many businesses have neglected to focus on staff and organizational structure. Very few organizations have appointed a centralized manager for data quality and most lack sophistication in their data management methods. Organizations need to do more than buy a new piece of software; they need to make data quality an organizational priority and put the right team in place to manage that complex effort.” The study also found that: Ninety-seven percent of U.S. companies feel driven to turn data into insight Ninety percent of U.S. companies have some sort of data quality solution in place today More companies who have enjoyed a significant increase in profits in the last 12 months manage their data quality centrally On average, U.S. respondents feel 27 percent of their revenue is wasted due to inaccurate and incomplete customer or prospect data To obtain a copy of The data quality benchmark report from Experian Data Quality, click here.

2014 was an eventful year: Republicans regained control of both the House and Senate in sweeping fashion, the European economy constricted dramatically, Russian economic sanctions brought the country to the brink of default, and China surpassed the United States as the world’s largest economy. And those are just a few of the year’s macro highlights. Yet despite this tumultuous time, the United States continued to demonstrate positive economic trends. As we look ahead, precarious global events and international uncertainties continue to raise some alarms, but domestic economic fundamentals appear strong enough to withstand external shock. In general, the U.S. economic recovery is on track to evolve into a full-fledged expansion. Business and Consumer Credit Conditions at Recovery Highs The American economy closed the 2014 books on a very different note than it started. Tough conditions last January and February had analysts, business owners and consumers questioning the economic progress of late 2013. Fortunately – with the subsiding of last year’s unusually harsh winter weather – employment, revenue, consumer spending and credit conditions all rebounded exceptionally. These events were particularly positive for small businesses in America, as witnessed by the following trends. Small business credit After years of difficulty obtaining credit, the small business credit spigot is reopening – outstanding credit balances grew by nearly 5 percent and are up 1.9 percent from a year ago. In the third quarter, small business credit conditions improved significantly, according to the Experian/Moody’s Analytics Small Business Credit Index. Nearly 12 percent fewer businesses filed for bankruptcy, and the share of credit balances being paid late fell to 8.8 percent – the lowest level ever tracked. The net share of small businesses that plan on raising employee compensation over the next three to six months is at a recovery high, and Moody’s Analytics expects the United States to reach full employment by the end of 2016. Consumer credit trends Positive consumer spending and credit trends are therefore beginning to emerge; the national average VantageScore rose two points over 2013. Some consumer highlights: Bankcards on the rise: Overall, the nation’s credit scores are up and bankcard and retail card lending is growing, according to Experian’s State of Credit report. Specifically, the number of bankcards per consumer rose 4.2 percent from 2013, and the number of retail cards rose 6.7 percent, according to Experian. Consumer comfort zone for loans is back: Consumers are increasingly becoming comfortable taking out loans to purchase big-ticket items. Use of home-equity lines of credit grew amid a resurging housing market in 2014, and delinquency rates remained steady. New loan originations throughout the year totaled $120 billion—up 27 percent from the previous year. This growth trend is expected to continue through this spring and summer’s buying season. Auto loans and higher education benefit from recovery: Car and student loans are also seeing a rise. Open auto loan balances reached an all-time high, with the majority of loans/balances in the super prime credit range. And in an analysis of student loan trends since the 2008 recession up through 2014, Experian found that student loans increased by 84 percent, surpassing home equity loans/lines of credit, credit card and automotive debt. Cross-Channel Marketing Remains Strong With the explosion of smartphones and digital tablets, marketers are seizing opportunities to reach key audiences in new ways, further strengthening America’s economy. Last year, 80 percent of marketers planned to run cross-channel marketing campaigns, and more than half planned to integrate their marketing campaigns across four or more different channels, according to Experian Marketing Services’ Digital Marketer Report. This fuels the economy by increasing the likelihood that consumers will make a purchase, as marketers can tailor offers to consumers’ specific needs. At the same time, it creates a strong need for data solutions to help marketers efficiently target their efforts. Ninety-three percent of companies have some sort of data-quality solution in place, Experian Data Quality found, but very few are calculating the return on this investment. Looking ahead, these businesses will need to calculate the return on their investments to document the economic value to their business – and we believe the outlook is strong for cross-channel marketing to continue to infuse energy into the American economy. Credit Uncertainties: Improved Housing and Consumer Spending Critical Many of 2014’s big uncertainties were resolved after the first few months of the year. Initial stagnation turned out to be the result of inclement weather, and the delay of the Affordable Care Act’s employer mandate for small businesses allowed companies more time to prepare for greater employee health costs. But domestic uncertainties remain. Given their deep roots in the U.S. economy, consumer spending and the housing market will need to continue to pick up to successfully accelerate growth throughout 2015. Small businesses depend heavily on consumer spending to operate, and while household finances are trending at recovery highs amid stronger hiring and lower unemployment, compensation and hours worked actually fell last fall. At the same time, the housing market recovery is still not broad-based, leaving the construction industry in flux and certain regions lagging in growth. In New England, the market has remained stagnant, and in Florida and Illinois, where the housing crash was disproportionately detrimental, key industries such as construction are among the worst in the country. Meanwhile, in the Mountain and Western regions, population and job growth in lucrative fields have driven a housing boom and healthy credit economy. Future Outlook Despite pockets of stagnation and global challenges, the U.S. economy is poised to see a full-fledged expansion in 2015. As the labor market tightens, employers will raise compensation, freeing up discretionary consumer spending that will prove critical to sustained economic growth. All told, expect upward trends in the economy to continue as 2015 swings into high gear. Lloyd Parker is Group President, Credit Services for Experian North America. He leads the sales and service teams for Experian’s Credit Services & Decision Analytics businesses.