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Globalization and technological innovation are changing the way Americans work. More and more, people are taking advantage of easy-to-use technology to take care of their day-to-day tasks, be they personal or work-related. While consumers have adapted to the new digital world and continuous progress in many aspects of their lives, their credit bureaus have been hard at work shifting and navigating to the new normal of frictionless technology tools on our personal devices that most of us are embracing. However, we have to acknowledge that even with some positive changes and advancements taking place in the lending industry, the lending process overall has not always kept pace with technology and consumer expectations, with applicants stuck pushing papers in application stages that can last almost 10 weeks. Aspirations for higher education that require a student loan, building or purchasing a home through a mortgage and realizing that next big innovative idea with a small business loan are hamstrung by a remnant of the 20th century – the paper-based loans processes. So today, Experian and Finicity are announcing a partnership that promises to transform the consumer and lender experience and bring it into the 21st century. By partnering with Finicity, we are leveraging our combined capabilities – their industry-leading 16,000 developed integrations throughout the financial services field and Experian’s Decisioning as a Service platform, to be the first credit bureau that can digitize the loan asset and income verification steps of the underwriting process for consumers and lenders. For consumers, this digital transformation of key steps of the loan underwriting process can mean increased time and money savings by helping to decrease the cost of lending. Loan approval speed can move up to 85 percent faster, taking the process from as many as 70 days to as few as 10 days. The access to faster lines of credit enables consumers to get the keys to their new home sooner and removes obstacles to opening a business. Instead of filling out, printing, photocopying and compiling document upon document, consumers need to only permission lenders to verify their income and assets. The new lending process also opens new opportunities for the millions of Americans who may be “credit invisible.” Tens of millions of Americans lack access to credit either because they haven’t ever accessed credit or have a weak credit history. Yet, most consumers have a checking and savings account, as well as other payment obligations such as rent, and utility and phone bills, which can demonstrate they are capable of repaying a loan. Finicity’s extensive integrations fill this gap by capturing alternative data, like on-time rental payments, utility bills and other non-traditional transaction information, which creates a more comprehensive picture of consumers. By looking at predictive alternative data, we are leveraging and harnessing the power of data to help underserved populations, including millennials, minorities and immigrants build their futures by accessing credit to start a business, obtain a mortgage or finance higher-education pursuits. What does this mean for lenders? It means providing customers with a better experience throughout the underwriting process and significantly reducing the risk of fraud with up-to-date, accurate information. In addition, Finicity is in a final pilot testing review to obtain Day 1 Certainty by Fannie Mae. With Day 1 Certainty, lenders can validate loan application data including income and assets upfront. The results are freedom from representations and warranties, more efficient risk management and a streamlined process. At Experian, we take charge of powering opportunities seriously. We take pride – but don’t rest on our laurels – in that we’re the industry leader in technological innovation to reduce pain points for consumers and build better products for our clients. We don’t innovate for innovation’s sake. Rather, we seek to leverage technology to help more people access better tomorrows. This partnership and the product stand to benefit millions people by facilitating access to credit for the first time for many. For all consumers, it will reduce the burden the formerly burdensome loan underwriting process – and speed the approval times. For lenders, we’re reducing occurrences of fraud and allowing them to more appropriately price risk. We’re continuing to lead by digitizing the credit bureau, and undoubtedly, this announcement will be joined by other announcements that we will be making in the near term. Revolutionizing the Home-Buying Journey Introducing Income & Asset Verification
I’m a Senior Vice President of Sales, responsible for leading Experian Health’s teams as they assist hospitals, physicians, labs and pharmacies across the U.S. We provide technology for providers and patients to help keep the costs and payment processing component of healthcare easy and transparent. The part of my work I am most passionate about, however, is our efforts to decrease identity theft in healthcare. Medical identity theft is one of the fastest growing areas of identity fraud in the world. With everything moving online at a fast pace, health care providers may not always keep up with the protections needed with new technologies. Unfortunately, that means hackers can sometimes acquire a patient’s personal information – name, Social Security number, health insurance number – to illegally obtain medical services or devices, insurance reimbursements or prescription drugs. One of the biggest issues with this type of fraud is that it leaves its victims with little to no recourse for recovery. They often experience financial repercussions and discover that faulty information has been added to their personal medical files as a result. To address this issue, my team and I partnered with Experian’s Decision Analytics team to create a new tool that protects patients’ online portals in much the same way that banks have protected their online clients for years. Additionally, our team is the in process of launching a Universal Identity Matching solution – a unique PIN which acts like the Social Security Number for your health care information. As more health care companies begin to adopt it, this PIN will be the one thing you will need to carry with you, as it will be your unique identifier for all your health care experiences. A lot of processes in hospitals today are still manual, but I want to change that. I want to automate systems so hospital staff can focus on where they are most needed. I am proud to work at a company that’s at the forefront of solving the major problems in healthcare IT. Being able to provide technological solutions in an industry where you can directly see the benefit is both personally and professionally rewarding. Read more #ExperianStories from our colleagues around the world.
In-kind donation of IntelliView data helps businesses plan and implement consumer programs Consumers will be empowered to repay debt and increase financial literacy One of our core brand beliefs at Experian is how we are using our data and analytics to help businesses and consumers. Once you can unlock the potential of that data for those involved, everyone around you can achieve even more. We strive to make a positive impact to consumers by getting involved with different charitable organizations in communities where we live and work through our Corporate Social Responsibly program to create success. With that as our backdrop, we are proud to announce a gift in kind of our IntelliViewSM data solution to InCharge Debt Solutions, a non profit financial counseling company that helps consumers get financial access. InCharge Debt Solutions will use Experian IntelliView data in their strategic planning process to help them gain a better understanding of macro industry trends and identify services that will most benefit the people they serve. “We really appreciate the IntelliViewSM data access from Experian. If we didn’t have this access we would have to do strategic planning in a much more blind way,” said Chris Henningsen, V.P. Consumer Awareness & IT at InCharge. “The insight IntelliView brings helps us plan and implement programs that the people we serve most need to restore and improve their financial well-being.”” “We’re happy to offer InCharge access to our Intelliview solution to enable a proactive approach in providing advice to their clients to achieve greater financial success,” said Alan Ikemura, Experian senior product manager for Intelliview. InCharge Debt Solutions is a nonprofit organization offering confidential and professional credit counseling, debt management services, bankruptcy education, housing counseling and educational initiatives since 1997. With the assistance of certified credit counselors, the organization has helped over three million people repay a staggering $3 billion in debt and provided more than 10,000 free financial literacy community workshops. The $58,000 contribution is just one of the many ways Experian supports financial literacy and unlocks the power of data to transform lives and create opportunities for consumers, businesses, and society. Learn more about how Experian’s Corporate Social Responsibly team is helping Experian make a real impact in our communities.
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.
We believe that financial literacy leads to empowerment. That is why Experian supports initiatives and partners with community organizations to deliver financial education. We also develop products and services that give more control to consumers over their credit profile and financial health. As part of advancing our mission of Financial Power to All®, we are proud to announce we are helping more than 5,000 Hispanic individuals nationwide by relieving $10 million dollars of consumer debt. To provide families with this boost, we joined forces with ForgiveCo, a Public Benefit Corporation (PBC), to administer the acquisition and cancellation of qualifying consumer debt for the selected recipients. Beneficiaries will also receive a one-year premium Experian membership for free that offers access to their Experian credit report in English and Spanish[i], FICO® Score[ii], bilingual educational content, and other financial resources. We hope this effort helps raise awareness of the importance of financial literacy for everyone, and that Experian has resources to help individuals reach their financial dreams. To amplify the message, we collaborated with multi-platinum, award-winning singer and songwriter Prince Royce and you can see his video here. In fact, we have been making a concerted effort the last several years to evolve our educational resources and products to better support all underserved communities. Some of our other activities include the creation of the B.A.L.L. for Life initiative that connects African American and Hispanic youth with financial education, supporting scholarships for Asian Americans through the Ascend organization, providing custom resources for Out & Equal and Born This Way Foundation for the LGBTQ+ community, supporting the NextGen Innovation Lab for Disability:IN, and sponsoring credit counseling for the military community with Operation HOPE. For resources in Spanish, Experian offers a credit e-book and consumers can access a full suite of articles at the Ask Experian blog here. [i] Only Experian credit reports are available in Spanish. All other services associated with an Experian membership are available in English only. English fluency is required for full access to Experian’s products. [ii] Credit score calculated based on FICO® Score 8 model. Your lender or insurer may use a different FICO® Score than FICO® Score 8, or another type of credit score altogether. Learn more.
Amid some of the financial challenges that underserved communities experience, members across the financial services community remain committed to championing initiatives and programs that drive greater financial inclusion. In fact, collaboration has led to the inclusion of non-debt related payment information on consumers’ credit profiles, as well as digital services that make it easier to manage money. These efforts have helped to broaden access to fair and affordable financial resources for more individuals. While significant progress has been made, there is still more work to do. However, some of the misconceptions and myths about the financial services community are hindering further advancement. Debunking these myths will accelerate progress by building trust between the financial services community and consumers. Person withdrawing money from ATM contactless Myth #1: “Financial institutions have no interest in underserved consumers or credit invisibles.” The truth is, banks and credit unions want to say “yes” to more prospective borrowers, including individuals and families from underserved communities. Beyond being the right thing to do, it’s an opportunity to potentially build lifelong relationships with a relatively untapped market. A show of good faith to communities who have largely been ignored by the financial system could lead to customer loyalty that may extend to their family and friends. That’s why participants across the financial ecosystem have been proponents of including expanded data sources—such as on-time telecom, utility and video streaming service payments—on to consumer credit reports, as well as exploring other Fair Credit Reporting Act (FCRA)-regulated data sources, including payment data on short-term small dollar loans and expanded public records data. Making this data more accessible to lenders provides a more comprehensive view of a consumer’s ability and willingness to repay outstanding debt—an actionable solution to extending credit to consumers without lenders taking on additional risk. Myth #2: “There is a lack of trustworthy financial education resources.” The financial services community and affiliated organizations recognize that empowering people with financial knowledge and skillset are critical to consumers’ financial success. In fact, banks and credit unions are partnering with nonprofits and non-governmental organizations to better understand the unique challenges and opportunities within specific communities and provide relevant tools and resources. For example, Experian’s B.A.L.L. for Life (Be A Legacy Leader) program, launched in partnership with the National Urban League, serves as a catalyst for engaging with Black communities and low-income youth through live events and digital financial education. Subject matter experts, professional athletes, celebrities, and other influencers share their experiences and expertise, covering topics such as banking, credit, financial management and investing. In addition, to help people improve their financial management, Experian partners with the National Foundation for Credit Counseling (NFCC). The NFCC connects consumers with certified financial counselors to help them address various pain points, including debt management, homeownership, student loans or small business cash flow issues. Myth #3: “Underserved communities have few opportunities to build credit and enter the mainstream financial system.” People from underserved communities, as well as younger consumers and recent immigrants are often excluded from the mainstream financial system because they lack an extensive credit history. Historically, it’s created a vicious cycle; in order to get credit, you have to have credit. Fortunately, there has been a sea change in innovative solutions to address the specific needs of these populations. These include new credit scoring models and microfinancing which provide financial services to individuals who may have been excluded from traditional banking systems. In addition, by incorporating expanded data sources, such as telecom, utility and residential rental payments onto credit reports, lenders have more visibility into consumers who may have been excluded by traditional credit scoring methods.These programs help individuals and families from underserved communities establish and build a credit history that could enable loans, or the ability to rent an apartment or open their dream business. An example is Experian Boost®, a free feature that allows Experian members to contribute their history of making utility, cellphone, insurance, residential rent and video streaming service payments directly into their Experian credit profile. By incorporating nontraditional credit data like paying utility bills on time, online banking transactions, rental payments and verified income data, more people can establish a credit profile that can potentially qualify them for a loan. More Inclusion, Fewer Myths It’s encouraging that community organizations and banks are beginning to see the economic and social benefits of aligning on financial literacy and inclusion. As more initiatives come online, underserved populations will be able to establish a better financial foundation. Then, we can declare the myths to be history.