Margins and Paddings Update

Identity fraud is at an all-time high, and it can have devastating consequences on a person’s life. Victims of identity fraud may have to file for bankruptcy or deal with debt, which can sometimes cause personal relationships to suffer. Elderly people in particular are at the greatest risk of fraud out of any age group, as they tend to more trusting of phone calls, house calls and email scams. It’s my job at Experian to arm them with the tools they need to prevent identity fraud. The number one challenge in helping prevent identity fraud is lack of awareness. People simply don’t know all the risks, so education is a paramount priority. At Experian, we conducted research on the best way to educate different age groups, and found that it varied widely. While younger people are best reached online, older people are more responsive to face-to-face activities, which is part of the reason they are more susceptible to doorstep scams. To help educate elderly people, we found we needed to go out into the community and literally put useful information into people’s hands. As part of these efforts, my team at Experian first worked with the Outreach Solutions organization to help older people in Nottinghamshire, England, understand the dangers of fraud. The pilot campaign, “Tackling Fraud,” reached 15,000 U.K. residents over age 55, teaching them how to tackle the threat of fraud. We armed these individuals with expert advice on how to spot suspicious activity and stop it from happening to them or the people they care about. Given the success and great reception we had in Nottinghamshire, it was clear that this movement could continue growing. According to Experian research, Glasgow is one of the areas with the highest number of identity fraud cases in Scotland. We’d been testing a new television advertisement in Glasgow – marking the first time that identity fraud has ever been advertised on TV in the U.K. – so I made the case to run the next iteration of our Tackling Fraud campaign there, too. In partnership with the Glasgow Council for the Voluntary Sector, we worked with a range of individuals and community groups to provide fraud prevention training to more than 30,000 elderly people in the city.\ We’re dedicated to helping the elderly with our Tackling Fraud campaign, putting people in control of their lives by giving them the information they need to help them protect themselves. I hope that one day we can take this project throughout the U.K. Written by: Phil Rance, Director of Product Identity, Experian Consumer Services  

I am delighted to be able to share the exciting news of Experian’s intended acquisition of ClearScore. By combining the experience and strength of our global organisation with those of a successful and rapidly scaling business, it’s our aim to create the most compelling destinations for consumer finances in the UK. Today’s announcement is the first step in delivering a pipeline of future products and services that will further improve consumer choice and access to credit in the UK and beyond. Consumer digital behaviour is rapidly changing the way we all access financial services. At Experian, we’re introducing a range of new services that meet the demands of this changing marketplace, helping people to manage their finances in a simpler, faster and more affordable way. Whichever device people prefer, at any given time, they will be able compare offers on credit cards, loans and mortgages to see which product best suits them, helping them to plan and better manage their financial lives. Like us, ClearScore is a leader in digital finances. It’s an incredibly dynamic organisation, with a large, enthusiastic and engaged group of users. Since its launch in 2014 the business has grown rapidly to more than six million users across the UK and South Africa access to a free credit report and scores. It is our intention to maintain the two brands alongside each other – both ClearScore and Experian. We want to offer services that appeal to the widest possible range of people, and each of these successful identities has a role to play in doing that. At the same time, by bringing ClearScore into the Experian family, we’ll be able to combine our skills and expertise to better enhance the consumer experience. Together we’ll accelerate the development of new, innovative products and services for both brands, leading to a better choice for people across the UK and beyond. Justin Basini, co-founder and CEO of ClearScore, has reiterated the importance of the acquisition: ClearScore is excited to join Experian in due course and to begin a new stage in our incredible journey. We will catalyse positive change for consumers as we combine the businesses and build a global business. It allows ClearScore to deliver on our mission – to help people sort their money – even more effectively. We will be better able to scale, more efficiently, with more resources at our disposal and this will allow us to deliver more for the people who matter most to us – our users. Experian is the world’s biggest credit information company, operating in 37 countries around the world, giving us a much bigger stage upon which to build ClearScore. As is common in a deal such as this, the agreement is subject to regulatory approval. Once that’s concluded, we’ll be able to talk in more detail about how and why this combination will help both Experian and ClearScore to achieve our shared goals. Namely, providing more choice and greater convenience to individuals who want to access personal financial products at the best prices, while also making it easier for businesses to connect with the right customers. In the meantime, it’s business as usual for both companies. We are immensely excited by the opportunities the acquisition of ClearScore brings, and look forward to welcoming the ClearScore team to Experian in due course.

Promoting a better understanding about how the credit economy works and improving financial awareness, so that people can take control of their financial situation with positive, proactive decisions, is absolutely fundamental to our business strategy. This is encapsulated through our financial education programmes. In partnership with Young Enterprise, we have created 28 Centres of Excellence for schools to support children’s financial education. And through Experian’s Values, Money & Me, we have created the UK’s first free online teaching resource to help children develop their financial knowledge and abilities. Credit Awareness Week is, then, a natural place for us to continue that focus. And to take that conversation more widely, to our industry partners, for us all to consider how we might find better ways of working, and drive better outcomes for our customers. There’s no doubt that we are living through a period of significant financial uncertainty. At times like this it is important that consumers are aware of all the options available to them from a financial perspective. And we believe your credit score is one of the first things you should look at. It’s perhaps surprising then that our annual Credit Awareness Week consumer survey found that public awareness of credit and how it can be used to help with day to day challenges still remains relatively low, despite some signs of improvement – potentially driven by the widespread availability of free score services. The percentage of people who said they know their current credit score went up from 22% to 26%, while 47% have ever checked their credit report, up from 45% last year. However, there is still much misunderstanding coming through. 39% of those surveyed wrongly believe their own credit score can be affected by a previous resident of their address having a poor credit score, while 14% think, incorrectly, that checking their own credit report and score has an impact on their credit rating. More than a quarter (26%) are also wrong to believe having a high income can affect their score, while 14% are incorrect to think checking their own score has an impact. The number of people who believe that the system needs to provide clearer explanation about how the decision was made when credit is refused has also increased. What the results of our poll tell me is that more needs to be done in promoting a better understanding about all the options available, like the existence of eligibility and comparison services which are designed to help empower people shop around for better deals and, where credit is concerned, avoid damaging their score while they do so. So there is work to do in building a better understanding about how credit works, which is something we are committed to and that’s why we are supporting this campaign. To help, Experian and Credit Strategy have launched an improved ‘credit refusal pathfinder’ [add hyperlink] tool, to help guide people who apply for credit and get turned down. I’d encourage everyone, even those of us who think we know this business inside out, to take a look at the tool. And, in the spirit of building greater trust and transparency with our customers, let’s take this opportunity to have a think about what we in the industry can do to make things clearer for people. Helping them understand how lending decisions are made and empowering them to take control of their financial situation and make better, sustainable choices through affordable access to finance.