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We’re delighted to have been named as one of Britain’s ‘Most Admired Companies’ (BMAC) in Management Today’s annual survey, coming 21st in a list of nearly 250 leading firms from a variety of sectors, and taking third place in the ‘Business Support Services’ sector. Our 17,000 colleagues around the world work hard every day to service and power opportunities for our customers and this award is testament to the commitment they bring to our business every day. The hard work doesn’t stop here. We continue to strive for the highest standards across our global organisation, and we remain committed to delivering the very best services that can empower millions of people to stay in control of their finances, and help businesses meet the needs of their customers. For further information on BMAC, the winners and the methodology, please see: https://www.managementtoday.co.uk/bmac
In today's fast-paced markets, businesses of all sizes strive for an edge over competition, especially when it comes to wining over consumers' hearts and minds. Many find that competitive advantage in the way they apply artificial intelligence to improve their customer decision-making for high business performance. Data strategies for high-performance decisioning In today's fast-paced markets, businesses of all sizes strive for an edge over competition, especially when it comes to wining over consumers' hearts and minds. Many find that competitive advantage in the way they apply artificial intelligence to improve their customer decision-making for high business performance.In fact, recent research we commissioned from Forrester Consulting shows that this. The ability to make meaningful decisions that match your customer's context at a given point in time requires a solid understanding of their needs and goals. Having access to relevant data is essential to consistently deliver experiences that matter. Timing and availability of data is equally important to improving your customer-level decision-making; to make those sought-after better, contextual decisions, you need to have the pertinent data available at the right place and time to meet that given consumer's moment of need. For example, in an operational environment, this may translate into accessing the right type, amount and quality of data in real time, so you are able to respond how and when your customer expects. The role of responsible usage of data in building, fuelling, and maintaining your AI-driven business The energy needs of athletes exceed those of the average person. Similarly, in the AI world, data (nutrient) needs for high-performance require consistent markers over a long period of time. Data scientists looking after credit and fraud risk would use the same variables or 'nutrients' that have been traditionally used for conventional scorecard developments to fuel machine learning methods to build predictive models. These are 'proteins' such as application data, any behavioural data your business has on existing customers, credit bureau data, segmentation data, available public information or transaction data. Some trended economic data can be used as input for developing credit risk methods and governance to fit leading financial reporting standards and frameworks (think of IFRS 9 or Basel, for example). Similarly, to assess affordability, you will need to feed your algorithms with disposable income over your customers' lifetime plus data about how they use it. Financial data about customers' savings, and investments allows for more accurate risk management while property related info derived from rental data is useful for extending personalised credit offers. Meanwhile, more and more businesses are using speech and text data obtained through voice recognition to improve the collection process. In fact, recent research we commissioned from Forrester Consulting shows that this 'race for the customer' comes down to who knows them best. The ability to make meaningful decisions that match your customer's context at a given point in time requires a solid understanding of their needs and goals. Having access to relevant data is essential to consistently deliver experiences that matter. Timing and availability of data is equally important to improving your customer-level decision-making; to make those sought-after better, contextual decisions, you need to have the pertinent data available at the right place and time to meet that given consumer's moment of need. For example, in an operational environment, this may translate into accessing the right type, amount and quality of data in real time, so you are able to respond how and when your customer expects. The role of responsible usage of data in building, fuelling, and maintaining your AI-driven business The energy needs of athletes exceed those of the average person. Similarly, in the AI world, data (nutrient) needs for high-performance require consistent markers over a long period of time. Data scientists looking after credit and fraud risk would use the same variables or 'nutrients' that have been traditionally used for conventional scorecard developments to fuel machine learning methods to build predictive models. These are 'proteins' such as application data, any behavioural data your business has on existing customers, credit bureau data, segmentation data, available public information or transaction data. Some trended economic data can be used as input for developing credit risk methods and governance to fit leading financial reporting standards and frameworks (think of IFRS 9 or Basel, for example). Similarly, to assess affordability, you will need to feed your algorithms with disposable income over your customers' lifetime plus data about how they use it. Financial data about customers' savings, and investments allows for more accurate risk management while property related info derived from rental data is useful for extending personalised credit offers. Meanwhile, more and more businesses are using speech and text data obtained through voice recognition to improve the collection process.
To stay ahead of the competition and on the path of sustained growth, you need clear line of sight to both risks and opportunities through the customer lifecycle. Gaining better insights on customers is critical to achieving that, so you can make all the right decisions, big and small, about your customers and business clients. Based on the conversations we have with our clients, we have noticed that most executives are paying a lot of attention to measuring customer experience and reducing friction across digital touch-points through the lifecycle. For customer acquisition, for example, businesses like yours look at time spent on each micro-step (e.g. data field), dropout rates at each of those steps, and do A/B testing at a very granular level. The idea is to understand all points of friction including points of confusion, frustration, etc., so you can learn from those and improve the experience. But this is not an easy task. The various challenges involved are making sense of the vast quantities of data and the immaturity of that data as well as the construct of that data. Given the fast pace at which data analytics change and evolve, our recommendation is that you invest in tools that are data and/or analytics agnostic. Thinking ahead: leveraging data analytics and cloud-based decisioning platforms to design the right customer treatment There is a largely untapped opportunity to leverage data, analytics, optimisation and decision management solutions – such as cloud-based decisioning platforms – to design the right customer treatment and identify the next best action for that customer. Selecting the appropriate timing, medium, and channel for those actions lead to greater consistency and contribute to having more relevant communications with your customers. The more relevant you are, the more precise you are with the offers and the treatments leading to improved response rates, greater connectivity and interaction with the customer. This results in memorable experiences that enhance loyalty and drive profitability.
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.