Lorem Ipsumis simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged.
Financing my first car was a bittersweet feeling. I was thrilled at the thought of purchasing a new vehicle, yet I was dreading haggling the price with the dealer. As a millennial, I feared the rising prices for new cars, and knew that I needed to find a way to make the vehicle more affordable. That said, I decided to look at used cars. Clearly, I’m not the only car shopper going through this experience. Many consumers are exploring new options to keep their monthly payments down, whether it’s extending the length of their loan, or turning to leases. Sometimes it’s both. According to Experian Automotive’s Q2 2015 State of the Automotive Finance Market report, the average loan amount for a new vehicle reached $28,524, while the average loan amount for a used vehicle hit $18,671, a second quarter high and an all-time high, respectively. Subsequently, the increasing loan amounts also caused the average monthly payment for new ($483) and used ($361) vehicles to increase. Interestingly, the $122 difference in average monthly payment was also a second quarter high, furthering the need to make car payments affordable. As such, consumers continued to take out leases. During the second quarter, leasing accounted for 26.9 percent of all new vehicle transactions, reaching an all-time high. While leasing continues to be a popular option among car shoppers to keep monthly payments down, we’re beginning to see these consumers take it a step further. Sure 36-month term leases are still the most popular, however the percentage of leases extending past the 36 months into the 37- to 48-month range has increased by 18 percent. Furthermore, the average lease payment dropped $13 from a year ago, reaching $394. Findings from the report also showed that consumers continued to lengthen their loan terms, especially for used vehicles. The percentage of used vehicles financed for 73- to 84-months increased by 14.8 percent from Q2 2014 to reach 16.1 percent – the highest percentage of record. New vehicles financed for the same term length climbed 19.7 percent from the previous year to reach 28.8 percent. If the trend continues, we can only expect vehicles to become more expensive and harder to keep within budget. That said there are ways to keep monthly payments within reason. Just as I did, consumers will need to explore the different options available and work with the financing tool that best meets their needs. If they can do that, it will just be the sweet feeling of purchasing a car.
New research from Experian Marketing Services, a recognized leader in data-driven marketing and cloud-based marketing technology, shows that email campaigns using the words “choice” or “choose” in the subject line are driving substantially higher engagement and revenue rates than average. As described in our recently released Q2 2015 Email Benchmark Report, these email campaigns drove 22 percent higher revenue per email, a 46 percent increase in transaction rates and a 117 percent increase in transaction-to-click rates. “Allowing customers to choose their preferred path is a smart and tangible way to increase engagement and ultimately their return on marketing investment,” said Spencer Kollas, vice president of global deliverability services at Experian Marketing Services. “Marketers know that consumers are the ones in control of their relationship today. What’s interesting about the trend our research uncovered is that consumers are responding to brands that explicitly give them that control; they are engaging and spending with brands that are taking action to empower them.” Value of mobile subscribers The Q2 2015 Email Benchmark Report features a special section on mobile subscribers that features the results of two analyses of two brands with ongoing SMS (mobile push) and MMS (mobile text) messaging programs. To conduct the analyses, Experian® attributed the brands’ transactions to their mobile campaign data on a subscriber level. In comparing mobile transaction rates to email benchmark data, Experian found that mobile transaction rates were more than 10 times higher than those for email campaigns. Further, SMS push/broadcast campaigns made up more than 95 percent of the volume, but pull messages provided much stronger transaction results. Interestingly, the results also showed that dual subscribers (both email and mobile) were 3.9 times more likely to complete transactions than email-only customers. “While mobile subscriber lists typically are much smaller than email lists, these subscribers form a loyal group of highly engaged customers,” said Kollas. “It is the sophisticated marketer that is able to use this type of information to continue to increase brand loyalty and customer engagement across multiple platforms.” Benchmarking email volume and mobile gains The Q2 2015 Email Benchmark Report details overall email marketing trends for the second quarter of 2015 as well as the key performance indicators (KPIs) that shaped the success of email programs over the past two years across six major verticals: business products and services, consumer products and services, media and entertainment, multichannel retailers, publishers, and travel. According to the analysis, email volume rose by 16.1 percent in Q2 2015 compared to the same period in 2014, yet subscriber response rates remained steady. Consumer products and services and multichannel retailers headed the surge in email volume gains. Two-thirds of the brands in these verticals increased their year-over-year volume in Q2 2015. While publishers and media and entertainment brands had an overall decrease in year-over-year volume in Q2 2015, one-third of brands under those categories actually increased their volume this quarter. Further, all of the industry verticals increased volume in Q2 compared to Q1 in 2015, except for media and entertainment. In comparing email opens and clicks by platform, Experian found that 52 percent of total email opens occurred on a mobile phone or tablet during Q2 2015, a slight increase from 51 percent in Q1. In comparing email opens and clicks by device type, Windows accounted for the largest percentage, with the iPhone® receiving the second largest number of clicks. IPhone clicks were particularly strong for media and entertainment and multichannel retailers. A complimentary download of the full report is available here: http://bit.ly/1K69bT6.
Forbes Magazine recently named Experian among the top 100 innovative companies in the world for the second year in a row. Forbes has a rigorous selection methodology that places an emphasis on what organizations’ investors see as the most innovative today, but also the companies that investors believe will continue to be the most innovative in the future; Forbes calls this methodology the Innovation Premium. Put simply, it’s the expectation that a company will launch new products and services and enter new markets to generate growth. With this distinction, I am reminded of the many initiatives undertaken by Experian North America in the last year aimed at evolving its technologies and systems, all in an effort to deliver the highest-quality data, superior products, intelligent insights and best-in-class service to our customers. A few of these initiatives include: Experian Data Quality launched its first eCommerce offerings, allowing businesses of any size to quickly and easily see better value from their data assets. Experian Marketing Services transformed its marketing portfolio in the last two years – bringing together the synergies in the portfolio to deliver a differentiated proposition in the market. This transformation culminated with the launch of the Experian Marketing Suite, a marketing platform that unifies Experian’s unique capabilities in customer identity and recognition, consumer data, analytics and technology. Experian Consumer Services offered new apps to help consumers quickly and easily review and understand their Experian credit reports and FICO Scores. To ensure our ongoing commitment to data quality standards specific to consumer reported data, Experian created nimble technologies to identify business opportunities for clients and improve the quality of consumers’ credit reports. Experian Health introduced a number of new and innovative solutions to help hospitals, medical providers and patients address challenges, such as continuation of care, financial assistance, fraud and identity protection throughout the healthcare process. Our Business Information Services group introduced a new Global Data Network that provides businesses with insight into their international customers and vendors, enabling them to assess risk and become more competitive in the marketplace. To help companies manage risk and mitigate fraud, our Decision Analytics business recently launched a new dedicated enterprise Fraud and ID business in North America to more aggressively address the growing variety of fraud risk and identity management challenges businesses, financial institutions and government agencies face. In an effort to help its clients track loyalty rates, Experian Automotive reengineered its data sources to standardize a new loyalty measurement model at the manufacturer, brand and dealer levels. We’re proud that Forbes Magazine continues to view Experian as a forward-thinking and innovative company. But Experian isn’t resting on its laurels. We are continuing the ongoing process of looking at ways to serve our customers better by investing in innovation. In fact, Experian holds an annual innovation program that brings together talented employees from across our businesses to research, build and test new concepts that address emerging market challenges that can benefit from Experian’s data and insights. Data can be and must be used as a force for good. Match it with the proper technologies and systems, and we are in a position to help businesses, consumers, government and society overall.
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.