Margins and Paddings Update

In October, I had the pleasure of joining many industry leaders and fraud risk professionals from around the world at Experian’s Fusion Summit 2017 held in Scottsdale, Arizona. Our annual Fusion Fraud Summit is a great opportunity to hear from industry leaders on what trends and emerging technology they are currently focusing on. This collaboration with other thought leaders is critical to staying ahead of fraudsters and keeping consumers safe, while providing the best experience possible. In addition to enjoying the sunny Arizona venue, I had the opportunity to network and have candid conversations with attendees and speakers about their fraud challenges and how these challenges affect their businesses. One thing I found striking is that in nearly every conversation, the topics centered on one or more of the following four themes. Security As consumers, we want to feel safe and we want to feel that businesses are doing everything they can to protect us: our payment information, our identity, our credit. Similarly, businesses want to help their customers feel safe, but they also want consumers to know that the data entrusted to them will not fall into nefarious hands. As such, the fraud leaders I spoke with at Fusion are more concerned with security than ever before. But they also know that there is no silver bullet to solve the ever-growing fraud problem. Instead, it’s a multi-layered approach that includes a combination of products and strategies that will recognize identities and assess risk of fraud. Those layers will help to provide the right level of confidence for every transaction. Recognition Being recognized by the people we do business with goes a long way. Whether it’s your coffee shop barista or the front desk clerk at your favorite hotel, being recognized makes us feel appreciated and special. The same applies in today’s digital environment. With the lack of face-to-face interaction online, being recognized when transacting and engaging online is even more important. Customers expect to be recognized and welcomed wherever and whenever they do business. The fraud leaders I spoke with said the same; they want to be as certain as they can about who their customers are. The benefits to this are huge – customers are recognized and welcomed, and it is easier for the business to recognize the fraud. Convenience We all lead busy lives, so it’s handy when we can easily pay bills or make purchases online. But it is not convenient when we’re forced to enter in passwords we may not remember, or get a code from our phone just to prove who we are. Worse yet, purchases could be declined unnecessarily. Now that’s inconvenient. Businesses struggle, especially this time of year, to provide a hassle-free experience for their customers while keeping a handle on increased levels of fraud during the holiday buying season. Most of the executives I spoke with at Fusion would like advanced authentication and security measures that don’t impact customers negatively but provide a better way to establish trust. Trust And in the end, it really comes down to trust. As consumers, why do we prefer to do repeat business with people we know? It is because we trust them. You know them, they know you: recognition helps to stimulate trust. As businesses get to know and recognize their customers, even online customers, they become more confident in evolving the level of conversation and engagement. Trust is at the center of every strong, lasting relationship. And trust is what makes all of us feel safe and protected. While at Fusion, I gave attendees a sneak peek into some of the findings of our upcoming annual Global Fraud Report. Over the last several months, we interviewed 5,500 consumers and more than 550 businesses in 11 markets around the world to hear what concerns and priorities they had. We look forward to sharing lots of great information in the next few weeks and throughout 2018, but for now I can tell you 30 percent of businesses are experiencing more fraud losses over the past 12 months. While these same businesses are eager to introduce new and innovative ways for consumers to open accounts or conduct transactions online, they also are keenly aware that new channels present new challenges. In order to make a difference, we need to work together as an industry to find smarter and more efficient ways to protect both the businesses and the customers they serve. Throughout the coming months, we’ll be sharing the 2018 Global Fraud Report and the findings. I’m sure you’ll find – just as we did – some eye-opening research into how consumers view recognition and trust and what businesses need to do to provide that secure and positive customer experience. For more information about how Experian can help you recognize your customers and better detect fraud, visit: https://www.experian.com/decision-analytics/global/fraud/global-identity-fraud.html

Positive female role models are important if we are to transform some of the preconceptions that the public, and more importantly young girls, have about a career in STEM. To achieve this, it’s important that the effort starts at an early age to breakdown the stereotypes and outdated views that certain professions are gender-specific. At Experian, we are committed to empowering more women to become data scientists. That’s why we were delighted to sponsor the Women in Data conference in November, to help inspire, educate and support women into the data industry. Further to that, we are absolutely thrilled to find out that Experian's data scientist Berenice Pila-Díez was announced as one of the 20 women in data and technology, a project showcasing women forging careers in the traditionally male-dominated fields of data and technology. We hope that Berenice’s story, along with the others, will act as inspiration for the next generation of girls (and boys) to follow in their footsteps and establish a successful career in STEM.

As Doug Conant, the former CEO of Campbell’s Soup once said, “To win in the marketplace you must first win in the workplace.” This is quite befitting as Experian celebrates being named a 2017 top workplace for the fifth consecutive year by the Orange County Register.  While we work hard to run our business and service our clients, this recognition is a testament to our culture, which emphasizes collaboration, innovation and diversity amongst our employees. “We are proud to foster a global culture of continuous innovation,” said Craig Boundy, former chief executive officer, Experian North America. “Our goal is to create a culture where everyone has a real sense of belonging and trust and is comfortable showing up every day, being their authentic self.” Boundy continued, “We’re thrilled with our continued presence on the Orange County Register list as it validates the great work we do every day for consumers, clients and our communities.” Culture of Collaboration At Experian, we get the opportunity to work with a great group of people that truly want to make a difference in the lives of consumers and our customers, Experian employees do this by working to help people do important things to improve their lives and realize their ambitions; such as buying a car or home, funding an education, growing a business or protecting their identity. This commitment to put consumers first comes from our diverse culture and the collective strength of our highly motivated team members who are constantly collaborating to help Experian create a better tomorrow for millions of people every day. At the Forefront of Innovation As part of our work, we have embraced a culture of discovery that has enabled us to grow and evolve while remaining at the forefront of innovation. We continue to have a positive impact on consumers, businesses and the economy with our products, technology and innovations. From finding breakthroughs around better utilizing data, to identifying ways we can make access to credit faster and simpler for millions around the world. This past year has been a year of significant milestones, including our partnership with Finicity, the introduction of our Text for Credit product, and our drive to create a more open and adaptive technology environment by implementing API capabilities across the Experian network. Giving Back to the Community We are equally committed to giving back to our communities by creating better tomorrows.  From volunteering with the Jessie Rees Foundation – which helps children deal with cancer – and the Blind Children’s Learning Center. This year Experian also provided a $750,000 gift to create the Experian Assistant Professorship in Machine Learning at Chapman University. This investment is being used to expand machine learning opportunities at the university’s Machine Learning and Assistive Technology Lab (MLAT), where Chapman researchers use big data and technology to address challenges of social significance like autism. The gift is the latest of a long series of collaborations between Chapman and Experian. Several years ago, Experian and Chapman began a partnership that involved placing graduate students to become data scientists in internships within Experian to provide them real-world, hands on training. Since then, the partnership has blossomed to include embedding a Chapman faculty member within Experian to better ground the academic community on how data scientists work within the private sector to better shape their curriculum. We’ve also supported scholarships and programs at Chapman to ensure that the field of data science remains inclusive, diverse, and talented. We’ve also helped with the Hurricane Harvey relief efforts. From the moment the storm hit, our team was already rolling up their sleeves. Our corporate responsibility team set up a donation link right away for employees to make contributions to the South/Central Texas American Red Cross, providing critical aid to families. We were met with an overwhelming amount of generosity from our employees, and raised more than $90,000. Also, we partnered with 14 banks with branches in Texas who provided free credit and identity checks for hurricane victims, along with free memberships to our identity theft protection product. Recognition and Awards We continued to be recognized for our innovation and diversity by leading publications and industry organizations. Experian was named to Forbes Magazine’s Top 100 list of the “World’s Most Innovative Companies” for the fourth consecutive year. The Advancing Women in Technology (AWT) organization recently honored several Experian women at its 16th Annual Scholarship event. We are also one of 28 companies named to the Grace Hopper Leadership Index of companies whose representation and development of women technologists is above the mean. We are very proud to be among this select group of companies recognized by the Register for our positive workplace culture that attracts and retains top talent in Orange County, as well as our other locations across North America. Our employees are committed to helping to create better tomorrows in our communities through social responsibility activities, technology and innovation, and through our everyday work and business purpose.