Financial Access

I was recently invited to a panel discussion as a part of Money 20/20 titled Do Credit Scores Still Matter? Closing the Chasm through Data and Innovation with Lauryn Nwankpa, Head of Social Impact at Dave and Jay Moon, General Manager of Credit at Credit Sesame. We discussed how important data and innovation are right now to ensure that consumers get access to credit that they need.   As the largest credit bureau in the country, and in service of our mission to be the consumers’ bureau, we at Experian have a responsibility both to consumers seeking credit and to lenders who seek to assess the risk that a loan applicant represents.  As part of this, we’ll continue to extract value from the data that lenders are used to getting from us and we innovate by providing new forms of data that can help the many Americans who either face barriers or sometimes pay more for credit because of a lack of credit history or having a credit file that’s too thin.   I’m especially passionate about this as I myself was an immigrant and a thin-file customer at one point. When I came to this country, it was incredibly hard for me to develop a credit profile that I felt accurately reflected my financial situation and the (lack of) risk that I, as a borrower, would represent. But I was lucky as my first lender at the time was patient, just as I needed to be. They spent months seeking additional information about my situation, eventually enough to extend a firm offer of credit.  It is not only immigrants who may face this or similar challenges. The impact of COVID-19 has created a difficult economic reality for many Americans. At Experian, we’re dedicated to having a culture of continuous innovation, from the way we work to the solutions we create to help consumers on the road to recovery.  Especially during times of economic uncertainty, finding innovative means to effectively assess the creditworthiness of these consumers is critical.   That’s exactly what we focus on at Experian in order to help consumers gain financial access and stability.  Alternative data plays a critical role in achieving this. We’re finding new ways to use consumer-permissioned and alternative credit data in the credit scoring process, which can help lenders identify consumers who are excluded from the traditional credit ecosystem, but who can fulfill their financial obligations.  I’ve seen firsthand how our data and technology can help transform the way businesses operate and have spoken to many consumers who leveraged our innovative services to help them thrive in society.  Consumers want to be in the driver’s seat of their credit journey and we’re seeing a greater openness to providing data, which in turn enables lenders to make more informed decisions. This change is disrupting the status quo. Experian Boost is a great example of this. It’s a free and first-of-its-kind financial tool that empowers consumers to add positive telecom, utility and Netflix payment histories directly into their Experian credit file for an opportunity to instantly increase their FICO Score and access quality credit. More than 2.5 million have seen their scores improve with Experian Boost.  So, do credit scores still matter? My answer is that credit reports are more relevant than ever. They matter more than the score alone as they detail a consumer’s financial track record and deliver a historical view of how a consumer is managing and repaying debt over time. This information helps lenders determine who can fulfill their financial obligations and ensures consumers continue to have access to credit so I don’t believe credit reports are going anywhere.   As we navigate the road to recovery, it will be critical that all of us in the financial ecosystem work together to safeguard consumers and to maintain the integrity and openness of the credit market.  The credit report, augmented by consumer-consented and alternative data, is a foundational pillar to achieve both of those objectives. 

People’s engagement with financial information and their understanding of how organisations use it to make decisions about the products and services they can access has been growing for many years.    Experian has played a role in this journey. We were the first to allow people to view their credit report at any time and see their Experian Credit Score with the launch of CreditExpert in September 2003. It has allowed people to view their own information through a lender’s eyes, so they can understand how to improve their situation.   We’re excited to announce the next huge leap forward – the launch of Experian Boost in the UK.    Now for the very first time, people can instantly increase their credit score to help them access more financial products and services at better rates.  Experian Boost is a free service which allows people to use a secure Open Banking platform to share their everyday transactions – from council tax to digital entertainment subscriptions, such as Netflix and Spotify. These payments have never been factored into a credit score before, so adding them should broaden access to financial services.  Our analysis shows that more than 50% of people will see their credit score increase from using Experian Boost. But, crucially, the service will not make people’s score go down when they sign up to Boost.   People are also in total control of their data. If they wish, they can withdraw their information with a few clicks, and they are still free to re-join at any time. But by keeping Boost activated on their Experian account they can build a stronger payment history which could help them get their credit card, loan or mortgage they want.  We’re confident this is going to be a significant moment in how people represent their financial profile to organisations. Five million people have signed up for Boost in the US since it launched last year, with three million of those seeing their score increase.  At Experian, we strive to put people in control of their financial data and the launch of Boost is entirely in line with this goal.   Now it’s over to you – give your credit score a Boost.

In a world that was already becoming increasingly digital, COVID-19 expedited timelines and turned forecasted projects into immediate needs nearly overnight. I’ve seen this play out in my role at Experian as well as across the financial services industry. Experian was recognized as an innovative company prior to the pandemic and the current environment has only accelerated our ability to innovate. As we surpassed the six month mark adjusting to our new normal, I was invited to join Bloomberg’s Future of Finance: Leveraging Digital Transformation for a Virtual World roundtable discussion with Senior Analyst of Bloomberg Intelligence Julia Chariell and leaders from IBM, Ally Financial, Deutsche Bank and others, to share how we are rising to meet the needs of consumers and lenders during the COVID-19 pandemic. You can find a recap of our conversation here and view the full  video discussion here. We know each American is facing unique COVID-19-related circumstances, so there is not a one-size-fits-all solution. This notion has carried us as we are rising to meet the needs of our clients and consumers during the pandemic. We must allow individuals who can still meet their financial obligations to have access to credit and ensure lenders can identify them. Maintaining and improving financial access for these consumers will play an important role in our road to economic recovery. To continue to lend responsibly, the financial services industry must carefully examine all aspects of consumer financial capability in near real-time – consumer control and consumer-permissioned data play a key role in achieving this. By leveraging accurate data, I believe we have a chance to lessen the impact of the current U.S. economic crisis, extend credit responsibly, and support the hardest-hit consumers as we adjust to a new world post COVID-19.

Many of us have turned to streaming services to help us cope during this time of COVID-19. Being able to escape with some good entertainment while still maintaining our social distance is invaluable right now. Television streaming has skyrocketed 85% since March; I’ve certainly contributed to that increase. Now, subscribing to that streaming service can do more than entertain, it can improve a consumer’s financial health. Starting today, Netflix® customers can possibly improve their FICO® Score by adding their positive payment history through Experian Boost. Experian Boost™† is the innovation we launched in 2019 that can help consumers improve their credit score instantly. So far, approximately four million consumers have connected their utility and telecom bills to Experian Boost, leading to more than 29 million points added to FICO® Scores nationwide. This addition makes sense. Experian Boost already allows consumers to receive credit for paying their cable bills, so paying for a video streaming service on time should also help prove creditworthiness. It’s critical that we meet consumers where they are and adapt to help them in their current position, especially during a pandemic. Anticipating and prioritizing consumer needs is our focus and drives our innovation. After all, we’re consumers too. I’m proud of how our team uses their personal experience and their roles at Experian to create opportunity for millions of people to improve their financial health, especially during these uncertain times. Our job is to help consumers, and that doesn’t stop with their credit score. That’s why we’re also launching new free features available to everyone within the CreditWorks Basic and Premium products. The free tools provide personal insights and resources that can help consumers better save money and manage their financial profile. For more information about Experian Boost go to: www.experian.com/Boost. Experian and the Experian trademarks used herein are trademarks or registered trademarks of Experian and its affiliates. The use of any other trade name, copyright, or trademark is for identification and reference purposes only and does not imply any association with the copyright or trademark holder of their product or brand. Other product and company names mentioned herein are the property of their respective owners. †Results may vary. Some may not see improved scores or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost. 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.

We are delighted to have completed the acquisition of a 60% stake in Arvato Financial Solutions Risk Management Division (AFS RM), expanding our presence in Germany, Austria, and Switzerland (DACH) and bringing Germany’s second largest credit bureau into Experian.  It is an incredibly exciting moment for us both and marks a significant step forward in Experian EMEA’s growth ambitions.        Together, we form a powerful new partnership in Europe’s economic powerhouse. With AFS RM’s local expertise and sector knowledge of industries like e-commerce, telecoms and insurance, and our global experience and innovation in data, analytics, software, and technology platforms, we will redefine what’s possible for our customers.     AFS RM brings market presence with high-quality risk, fraud and identity management products and solutions tailored for key industries.   We bring scale, expertise, and innovative products like Experian One and Ascend Analytics on Demand.  Together, we will offer the best new technologies into these markets, delivering broad coverage and innovation that enables existing and new customers to make better, faster decisions, ultimately delivering greater access to finance for people across the region.     Our new partnership will be branded Experian, which is just one of the ways we’re welcoming AFS RM to the Experian family.  I’m delighted it will be led by Kai Kalchthaler as CEO, Experian DACH, who will ensure we help businesses find and fulfill their potential, so they can go further with us.  Watch how we’re redefining possible, today, tomorrow, together here.     

With the impact of COVID-19, we’re certainly in uncharted territory. Many people are struggling with high unemployment, which is resulting in missed credit card, utility, and rent payments. In response, Experian is joining forces with the other U.S. credit reporting agencies, to offer free weekly credit reports to all Americans for the next year via AnnualCreditReport.com. A credit report allows people to monitor their finances and better understand their overall financial health. We’re proud our industry is uniting to make this possible for all U.S. consumers starting today. Credit reports are updated constantly, so the ability for an individual to look at their report weekly is helpful to monitor for lender updates and ensure there is no fraudulent or unfamiliar activity. During these difficult times, this is especially important. In addition to the free weekly credit report at AnnualCreditReport.com, Experian also offers consumers free access to their credit report, FICO score, and ongoing credit monitoring at Experian.com. This is a no-charge product.  We want to give consumers multiple options to access and manage their credit report. At Experian, we’re committed to enabling fair and responsible lending through the power of our data. As the consumer’s bureau, our goal is to not only help consumers build credit but to get better access to credit. All of us are working diligently every day to keep our data as accurate, relevant, and secure as possible so that lenders can use the data to responsibly extend credit to people who need it most especially when the economy returns to strength. What You Can Do Now  The most vital action someone can take if they are unable to pay a bill is to talk with their lender and inquire about assistance programs that may be available. If a consumer receives an accommodation it will have minimal impact on their credit score if their account is in good standing and if there hasn’t been previous delinquencies reported We remain committed to informing, guiding, and protecting people during these unprecedented times. Beyond our offer for free credit reports, we’ve created a dedicated website, with links to multiple resources and materials to help the community learn about credit and other important personal finance topics. We encourage everyone to visit the Experian COVID-19 Resources & Credit Education. Take care and stay healthy.

Whether due to job loss, shortened working hours, or the need to take off time from work to care for ill family members, the current COVID-19 outbreak will undoubtedly cause financial hardship for millions of Americans. Understandably, the current situation is causing some consumers to fear losing something they’ve worked incredibly hard for – their home.    For many, a home is the largest purchase they’ll ever make. We spend many years of our lives working to purchase a home and then many years after working to fill it with memories.   We understand how important it is for you to protect your home. Thankfully, we’re seeing mortgage lenders, federal associations and the financial industry working together in truly unprecedented ways to help consumers cope with new financial challenges brought on by COVID-19.    Last week, the Department of Housing and Urban Development, Fannie Mae and Freddie Mac -- two of the largest mortgage services in the county -- announced they are suspending foreclosures and evictions for at least 60 days. You can read more about this announcement here.  This was followed by New York, an area hit particularly hard by COVID-19, urging mortgage servicers to refrain from reporting late payments for 90 days. The order outlines ways lenders can provide support to consumers who are unable to make timely mortgage payments, including forbearing mortgage payments for 90 days from their due dates. As part of this, late payments would not be reported to credit reporting agencies like Experian for 90 days and consumers would not have to pay late or online payment fees. The order also postpones foreclosures and evictions for 90 days and requires lenders to proactively outreach to consumers, through text, email or other means to ensure they’re aware of the assistance that’s being offered. Los Angeles, Miami and other cities across the U.S. are now also halting evictions.   This news was shared in conjunction with Bank of America announcing additional support to borrowers, including the option to defer, or essentially pause, mortgage payments during the current outbreak. Many of the largest mortgage lenders in the country are offering the same support to consumers. Please note, the Department of Housing and Urban Development, Fannie Mae and Freddie Mac acted fast, and these are the guidelines as of the time when this article was written.  As things are still early, our Experian mortgage team will stay abreast with potential new developments and update this information if or as things will change.   These are unprecedented times and we are starting to see lenders and consumers engage in equally unprecedented ways as we work to overcome the new reality we’re all facing.   At the same time, we are seeing interesting trends unfold in terms of mortgage lending activity. According to the Mortgage Bankers Association, as of March 25, 2020, these include:   Refinancing existing mortgages, which has been booming with interest rates at historically low levels, declined almost 35% compared to the previous week, but is still twice as high as it was the previous year.  Not surprisingly, the states with the biggest declines are the states hardest hit by the COVID-19 outbreak (i.e. New York, Washington, and California)  In addition, with the economy under pressure, there was a nearly 30% decline in weekly new mortgage applications. If you or someone you know is a homeowner, I hope you found this information useful. Remember, if you are concerned you may miss a mortgage payment, the first and best move you can make, to protect your home and your financial health, is to contact your mortgage lender as soon as possible. Lenders do not want you to miss a payment any more than you do. They can discuss options for navigating these unusual circumstances.   Keep in mind, these programs are available to you if you are facing financial hardship due to the COVID-19 crisis, for example, if you lost your job or had to be hospitalized.  Of course, we’re all hoping not to be in either of these categories.  If you haven’t been financially impacted by the current COVID-19 crisis, you are expected to continue to make your mortgage payments (and meet all your other financial obligations).   You should feel good about being able to do that as it will make you part of the important group of individuals who can keep contributing to sustaining the American economy. 

Through Experian’s technology and cutting-edge innovations, we’re helping consumers build their credit histories and access affordable, mainstream financial products. We are truly improving consumer’s financial lives in a meaningful way. But, with all the exciting innovations in technology, sometimes, it’s easy to forget the impact we can create in our everyday interactions with people.   Let me give you an example.    I recently traveled to Nashville, TN for a conference. Since I didn’t know my way around the area, I hired a driver to pick me up and take me to my hotel. As I was heading to the airport exit, I saw a woman holding a sign that read “Experian.” I introduced myself and we both got into the car and headed for the hotel.   As we were driving, she asked, “So, do you really work at Experian?” “Here we go…” I thought as I responded, “Yes, I do.”   She went on to tell me she was a Desert Storm veteran who faced some real financial hardships that tanked her credit score when she returned home from war. She saw a commercial for Experian Boost, our new tool that allows people to get credit for paying their telecom and utility bills on time. After trying the free tool, her score went up 11 points. This boost got her thinking about other ways she could improve her credit score. I spent the rest of our drive sharing some credit education including the importance improving her debt to income ratio, lowering utilization rates and making on time payments.   As we pulled up to my hotel and I got out of the car, she asked if she could give me a hug. “Of course,” I said. I was touched and slightly surprised, to see how much of an effect I had on her. Only, I didn’t realize then just how much of an impact our conversation would truly make on her life.   I recently had a chance to reconnect with Renee Preston. She told me about the dramatic changes she’s made since we met that are creating a lasting impact on her financial health.    At the time Renee picked me up, she was $56,000 in debt and her credit score was 605. Just a few months after meeting her, Renee put some of the credit education tips I shared with her into practice. Since then, she’s lowered her debt by $36,000 and her credit score has improved by more than 60 points. While Renee knows she still has work to do, she is inspired to continue to improve her financial wellbeing.  “I’ve been driving for more than 26 years. I’ve met all kinds of celebrities like Pink and Justin Timberlake. The fact that Alex took the time to talk to a little person like me, it really meant a lot. Since we met, I’ve taken a lot of steps to improve my credit and finances including getting a job with a much higher salary. I truly feel I owe all of these changes to Alex.”  Renee Preston, Nashville, TN  As a company, we are committed to helping people improve their financial lives. When we talk about being the consumer’s bureau, this is exactly what we mean.   I’m so thankful I had the opportunity to meet Renee. I’m inspired to continue to find new ways to improve people’s financial health, both personally and as a leading member of Experian’s team.  

Technology revolutionizes the way businesses operate, but implementing change within a company is often challenging and company-wide support is vital to successfully undergoing a transformation. At Experian, we’re using technology and innovation to modernize an industry, and satisfy the real-time data demands of consumers and businesses.  The success of this transformation is one of the reasons why we’re proud that our Global CIO, Barry Libenson, has been named the CIO of the Year. The 2019 Dive Awards recognize the industry’s top disruptors and innovators. These executives, companies, trends, and breakthroughs are transforming the industry. Winners were chosen by the editors of CIO Dive based on thorough and independent research, reporting, and analysis. Other award winners include Google Cloud and VMware. In 2015, Experian began the daunting task of moving from a traditional computing architecture to the cloud. Specifically, we put in motion a cloud strategy centered on flexibility and the ability to operate in any cloud. Such transformations often start by centralizing data and implementing new processes that minimize overhead and speed time to market, like cloud and mobile computing. This is a monumental job with our massive digital infrastructure and significant global reach, but it enables us to provide customers with real-time access to data. To do this we pioneered the use of Hadoop to store massive quantities of data for consumer credit scoring. Today, we maintain Ascend, a platform of 250 million redacted consumer records that enables our clients do real time queries on consumer credit data rather than batch processing. This has worked to digitally transform Experian from a traditional credit bureau to a technology and software provider. For us to further evolve we began working on APIs for internal use rather than going straight to customer-facing features. Today, we use APIs to help our clients and consumers access and make use of key data insights. For example, Experian Boost, which has helped millions of people raise their credit scores, is a result of information being accessed through API calls. As a result of our digital transformation, our API hub is processing more than 100 million transactions a month and Ascend is now one of our most successful cloud computing architectures. This all represents business opportunities that wouldn’t have been possible with a traditional digital infrastructure. Success for the technology team at Experian is found in the financial performance of the company.  "What I tell my team is the biggest sign of us being successful is praise," said Libenson. "When the businesses at Experian tell us we're helping them or we're doing the right things, that's the best measurement I can think of, in terms of success." As one of the world’s most innovative companies, Experian’s business continues to evolve to deliver faster, better services for our clients and consumers. "The people and organizations that win the Dive Awards are trailblazers and leaders in their markets," said Davide Savenije, editor-in-chief of CIO Dive’s publisher Industry Dive. "Their achievements in 2019 are shaping the future of where the latest strategies and trends are going." While industry accolades like CIO of the Year are important, the truth is that any transformation isn't an endpoint, but a journey. To succeed, we are in it for the long haul to use technology to help deliver results for our clients.   Read the full article on CIODive to learn more about Experian’s digital transformation.