Margins and Paddings Update

The power of data is good. Couple it with analytics and it becomes great. Derive real and tangible insight from this process, and you are left with a very potent tool to affect real change and do a lot of good in the process. At Experian, we have deep experience harnessing the power of data, in fact, we have been doing it since 1897. Using our insights to help merchants and consumers by providing an annual credit reference directory, we were using “big data” before big data was a buzz word. Fast forward to today, Experian is still working across sectors and categories to help business and consumers alike benefit from the intelligent use of data through insight. Our data assets are used globally to help consumers, financial institutions, healthcare organizations, automotive companies, retailers and governmental organizations make more informed and effective decisions. These days, “Big Data,” however, has become a cliché and often times carries a negative connotation due in part by the activity of some bad actors, but also because people tend to be afraid of the things they don’t fully understand. We look at “Big Data” differently. I’d like to take this opportunity to help shed some light on why data and the insights derived from that data are actually good. We are, by and large, better when we can make sense of the world around us, and that world today is made more complex due to the vast amount of information that’s out there. Experian’s business is predicated on the idea that we come to work every day to help society make better sense of the world by sifting through the information and coming up with solutions for real people, partners, governments and clients. Our insights are very often the cornerstone of solutions to real life challenges. Insight is used to help a consumer secure an affordable loan, understand their credit score, or protect their identity; or for a business to manage risk, help prevent fraudulent transactions, and to ensure they are marketing their products and services to the right consumers at the right time and across the right channels. Today, insights derived from data are enabling millions to obtain their first lines of credit. For example, by reporting, collecting and analyzing on-time rental payments, more Americans are building the credit histories necessary for financial and economic inclusion. In fact, a new analysis from Credit Builders Alliance recently confirmed the value of credit building for American citizens and the overall economy. Across the nation, examples like these abound. In each instance, information is helping to solve some of our most vexing public, societal and corporate problems, and at Experian, we celebrate our teams of data scientists and innovators who set out to solve some of these problems using big data and technology. In fact, this week we are gathering our team of global data scientists at our Future of Information Conference to collaborate and share break through innovations in data science. At the conference, we will also award the inaugural Si Ramo Prize, a global competition in data science named for the extraordinary pioneer of innovation in our industry, Dr. Si Ramo. Among other things, Dr. Ramo was one of the first to envision a cashless society and the data needed to drive that innovation. The future is bright and there’s still more we can do with data to drive growth and improve national policies. We’re working with the health care industry – and others, from energy to automotive to the multi-family housing community and government – to fully leverage data. We now need others to recognize and embrace its potential. So, yes, big data is good. The responsible, smart and compliant use of big data benefits people, our society and our economy. I invite you to browse through our site to learn more about what our company does and the programs we have in place. Click here to learn more about how Experian is conquering the world of big data. Craig Boundy is CEO of Experian North America.

October is National Cyber Security Awareness Month, and Experian’s ProtectMyID® issued its new survey results about cybersecurity. The study, conducted by Edelman Berland, reveals areas where consumers’ identities are the most at risk, including electronic devices and online accounts. The findings show that 93 percent of respondents believe that identity theft is a growing problem yet are not doing enough to address the issue. “Most people recognize that identity theft presents a problem that could affect them financially but don’t take steps to protect themselves,” said Becky Frost, senior manager of consumer education for Experian’s ProtectMyID. “Identity thieves use data as their commodity, selling it to the highest bidder, or for personal gain, so it’s important for consumers to protect their personal information. Consumers overwhelmingly report taking steps to protect their physical and digital information, but 33 percent still do not feel confident that they are doing enough to protect their identities. In fact, 73 percent say they are concerned that they could be affected by identity theft in the future, and 90 percent note that people should be more concerned about identity theft. Take greater control when securing your personal information with these helpful tips: Change passwords on a regular basis Avoid sharing personally identifying information, such as your full birth date, on social networks Avoid using public Wi-Fi hotspots that make it easy for thieves to hack into the information stored on your mobile devices Password-protect your phone since it provides access to sensitive information and accounts Enable remote location and wiping software to track your phone if it’s lost or stolen, allowing to wipe all of the data from it Review credit reports regularly, and watch for signs of fraud Consider enrolling in identity-protection monitoring, and take action if you receive alerts that your identity could be compromised Check out what else these respondents said in the complete summary of our survey results here:

Experian–Oliver Wyman data reports $120 billion in new home-equity credit loans in past year; Q2 2014 saw new mortgage originations totaling $292 billion Costa Mesa, Calif., Sept. 29, 2014 — Mortgage origination volumes saw an increase of 15 percent in Q2 2014. Home-equity line of credit (HELOC) lending saw the biggest gains, according to Experian, the leading global information services company, as reported in its quarterly Experian–Oliver Wyman Market Intelligence report. Is the home refinancing boom over? “Home lending had an incredible two-year period from Q2 2011 to Q2 2013, with $4 trillion in mortgage origination volume; 71 percent of that, or $2.9 trillion, came from home refinancing,” said Linda Haran, senior director of product management and strategy for Experian Decision Analytics. “A look behind those numbers tells us that the total dollars originated over the past four quarters are about $1.3 trillion versus $1.8 trillion, showing a 30 percent decrease in annual origination volumes from the refinancing boom.” “However, those last four quarters show us that the mix of purchase-to-refinance volume has shifted to a fifty-fifty split between refinance and purchase volume activity. This equates to new purchase activity increasing by 22 percent in Q2 2014 from last year, signaling that consumers are getting back into the market. In the long term, this appears to set up the market for continued purchases into spring and summer of 2015.” $35 billion in new HELOC lending from Q2 2014 Home-equity lending increased 25 percent in Q2 2014 totaling $35 billion in new HELOC originations compared with Q2 2013. Looking at the past 12 months, HELOCs totaled $120 billion in new originations, representing a 27 percent increase compared with the previous 12 months. HELOC lending growth seen across all regions Double digit growth was seen in all regions compared to the numbers reported one year ago.  The two regions that led the trend in increasing HELOC origination volumes were the West Coast and the Northeast — with 27 percent and 15 percent year-over-year growth, respectively. California accounted for the highest volume of HELOC dollars originated in Q2 with $5.9 billion, followed by New York with $2.2 billion and Pennsylvania with $2.0 billion. Make sure to join us for the Q3 2014 Experian–Oliver Wyman Market Intelligence Report webinar. About the data The data for this insight and analysis was provided by Experian’s IntelliViewSM product. IntelliView data is sourced from the information that supports the Experian–Oliver Wyman Market Intelligence Reports and is accessed easily through an intuitive, online graphical user interface, which enables financial professionals to extract key findings from the data and integrate them into their business strategies. This unique data asset does this by delivering market intelligence on consumer credit behavior within specific lending categories and geographic regions.