It’s no secret that businesses are what drive the U.S. economy. The exchange of goods and services for business large and small is what our society is built on. But, did you know that big data is actually a driving force in commerce? How, you ask? Businesses rely on data — just as we as consumers do — to form the basis for everyday decisions.
Experian has always been at the forefront of using big data, and over the years we have streamlined its uses to help drive commerce for the business community. Our commercial database contains unbiased information on more than 25 million active businesses in the U.S. However, data just scratches the surface of what we do. Our technology, analytical and consultative services help financial institutions and businesses (large and small) derive insights, which enable them to make more sound lending decisions, better manage their credit portfolios and acquire the right customers.
In fact, in 2012, we used these insights to develop the Small Business Credit Index with Moody’s Analytics, to provide a unique perspective on the health of small businesses in the United States. For example, our most recent report revealed that small-business credit conditions have improved due to an increase in the total dollars being borrowed, and an improvement in overall payment performance.
Payment performance is critical to small businesses because they have a much smaller customer base. As a result, the impact of one customer delaying payment will have a much greater effect on the business than it may on a larger company. It’s this insight that helps both financial institutions and small businesses take appropriate action. Lenders and suppliers can use the information to help mitigate risk and have more confidence when making future lending decisions, and, for small businesses, it enables them to uncover growth opportunities and increase profitability.
While the importance of business in the economy isn’t a big secret, the power of big data to help drive high-impact actions for organizations is a relatively unheard of concept, despite it being around for years.
Finding ways to use our data for good to help move businesses, as well as consumers, our society and the economy forward, is a primary driver for Experian. After all, the more that business succeeds, the better our economy will be.