We often talk about the balance between customer security and convenience, but rarely do businesses track the impact of identifying customers and managing fraud risks as two sides of the same coin. According to our recent Global Fraud and Identity Report, 84 percent of business believe if they were certain about a customer’s identity, the need for risk mitigation would be reduced. Being able to better identify our customers should be at the crux of all our campaigns. Simply put, the faster and better you recognize your customers, the faster and better you recognize fraud. And we are not alone. We feel the industry agrees with us. Two of the world’s leading research firms, Forrester and Gartner, both recently released reports regarding the state of identity, and we are thrilled to have been recognized in both. The Forrester report, “Top Trends Shaping Identity Verification (IDV) in 2018,” which was authored by analysts Andras Cser and Merrit Maxim, and published in March 2018, discusses the importance of easy-to-use identity verification tools and the top trends shaping identity verification. Experian was cited as the most used vendor for identity verification based on a survey of global network security decision makers. The report also shared an example where a North American bank improved its identity theft detection rate by 15 percent by using Experian’s identity verification services. We were also included in Gartner’s April 2018 Market Guide for Identity Proofing and Corroboration, which helps companies understand the value of identity when it comes to protecting customers and revenue. Experian was one of only three vendors that met all the capabilities criteria recommend by Gartner. The guide, authored by Ant Allan, Jonathan Care, Dorothy Luong and Tricia Phillips, also points out several key findings regarding identity proofing and corroboration. Just recently, Experian was named one of the top 100 most innovative companies in the world by Forbes for the fifth consecutive year, and this is icing on the cake. We are thrilled to be included in these reports and are committed to helping businesses provide a seamless identity verification process with accuracy and simplicity, and one that doesn’t negatively impact the customer journey. Ultimately, investing time and resources to develop the best tools for identity verification goes a long way. Not only will your business leaders feel more confident in your organization’s ability to detect and prevent fraud, it’ll also save your business the time and money that you would spend on eliminating fraud after it happens. All our fraud and identity services are available through our award-winning Experian CrossCore platform, the industry’s first open platform for fraud and identity services. Gartner Disclaimer Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner\'s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
At Experian, we are committed to finding new, innovative ways to deliver better outcomes for our clients and their customers. With this in mind, we are delighted to announce that we have now been granted approval to supply Open Banking and PSD2 services by the FCA. The accreditation allows Experian to help people benefit from the Open Banking initiative through a new suite of products so that consumers can share data in a secure and compliant way. This will complement Experian’s existing credit bureau services. The overarching aspiration of Open Banking is to level the playing field by offering greater choice through new products – promoting greater transparency about the benefit and value of these products in the process. This accreditation from the FCA underlines our commitment to support Open Banking for the benefit of both people and organisations. One bank has already signed-up to use our Open Banking platform and we’re running several proof-of-concepts with other clients, so they can explore a range of innovative new services. Open Banking will help people to prove they can afford products, even if they have a limited credit history. The development of insightful mechanisms to manage finances and simplify applications, for everything from financial products to rented accommodation, will also reduce the time and effort required. When people choose to share bank account information with financial service providers they can receive the most appropriate products, improved services and better deals. It will be a useful tool for organisations to ensure they only lend people and small businesses what they can afford to repay. And it will be invaluable to price comparison websites, brokers and background checking providers. Open Banking will also help lenders to meet FCA regulatory obligations in affordability and reduce costs when processing applications. Adopting new data assets will be easier from both a technical and consumer support perspective. The UK is at the vanguard of a global shift in data sharing. Having a dynamic economy and particularly a dynamic financial services sector, is going to be a crucial asset as we navigate our way through social and economic changes anticipated in the years ahead.
Innovation is at the heart of our business and our culture. It is one of the reasons we’re proud to be named one of the top 100 most innovative companies in the world for the fifth year in a row by Forbes magazine. In the publication\'s eighth annual list of the \"World\'s Most Innovative Companies,\" Experian climbed to the rank of 57th and is amongst the top 10 most innovative companies headquartered in Europe. Technology, innovation and new sources of data are fusing to create an unprecedented number of new ways for us to solve pressing business and consumer challenges. This accolade underscores our commitment to innovation, and using the power of data and technology to transform lives, businesses and economies for the better. At Experian, we have created a culture of continuous innovation focused on opportunities for businesses and consumers in today’s digital and data economy. Just a few examples include our involvement with the TechCity FinTech4All competition, which aims to discover a new generation of innovators and entrepreneurs who will change the future of finance, and our Experian MicroAnalytics work, which has extended over 5 billion credit offers to the world’s unbanked people. Experian has jumped up 40 places in this year’s Forbes ranking, placing us alongside some of the world’s leading technology companies including Tesla, Netflix and Amazon. This accolade demonstrates investors\' confidence in Experian’s ability to innovate, both today and in the years ahead, and is a testament to the tireless work of our employees. Even more exciting is that we’re leading our industry in innovation. This is reflected in Experian being the only credit bureau to make the list this year. And innovation experts agree. According to author Greg Satell, who profiled Experian in his highly touted business book Mapping Innovation: A Playbook for Navigating a Disruptive Age, “Experian is the manifestation of a culture of discovery that enables it to grow and evolve while remaining at the forefront of innovation.” The key to our success going forward is to continue to actively seek out unresolved problems and to create new products and technologies that will helps transform the way businesses operate and consumers thrive in today’s society. Learn more about some of our pioneering innovations here: Connecting Businesses in Brazil Through Data Analytics Experian DataLabs Is Experimenting with a ‘Voice to Credit’ Feature Delivering Value in the Digital Age: Exploring UK Attitudes Towards Data We\'re on the Brink of a New Era of Innovation FinTech Breakthrough Selects Experian for “Consumer Lending Innovation Award” in 2018 Data on Demand – Unlock New Insights, Create Opportunities Faster than the Speed of Fraud -- CrossCore
Experian MicroAnalytics has surpassed a record 5 billion credit offers, demonstrating our commitment to helping people in emerging markets create credit profiles and improve financial well-being. In emerging markets around the world, people have limited access to financial products, especially credit. At Experian MicroAnalytics we’ve developed a sustainable solution to provide billions of people with access to financial products, easily accessed through their mobile phones, unlocking the power of alternative data in countries across Latin America, Asia, Africa and beyond. “We’re thrilled to have extended over five billion credit offers,” said Elio Vitucci, CEO of Experian MicroAnalytics. “2017 was our fastest-growing year, and we are now extending over 270 million credit offers every month. Our goal is to help people in emerging markets build a strong financial identity. We build financial identities using mobile phone behavioral data, one of the richest sources of customer insight, and unlock an initial set of financial products. As customers use these products, they strengthen their financial identities and obtain access to an increasingly wider set of financial services.” While only a minority of people in emerging markets have access to banking services and even fewer have access to credit services, the vast majority have a mobile phone, most on a prepaid plan. Experian MicroAnalytics partners with mobile network operators around the world, using mobile behavioral data to start creating initial financial identities for people. With these financial identities, customers can start to gain access to simple but useful financial products, such as airtime credit. As customers continue to take and repay their borrowed airtime credits successfully, they strengthen their financial identities and progressively unlock a wider, more complete set of financial services. This creates a virtuous circle, where in time customers graduate to a full set of financial products. “We help consumers in emerging markets to build a financial identity, unlocking access to financial products such as loans, credit cards, insurance and more, all available via their mobile devices,” Vitucci added. “These financial products fuel economic development, stimulate growth and have a positive impact on the quality of life for billions of people.”
What would your reaction be if you were told you were one of the four million people in the UK who had a ‘thin file’? Justifiably, your first questions might be to ask what that is and why it matters. A person has a ‘thin file’ when there is limited financial information available about them, which means usually they have a lower credit score and fewer options available when it comes to accessing financial services. Research we carried out earlier this year found 1.2 million people with thin files are in groups whose household disposable income is forecast to fall in the coming years. As a credit reference agency, responsible for helping lenders to make informed decisions about their customers, the statistics are clear in showing there is work to be done. The commitment to address this issue is part of the reason why Experian was recognised for raising Consumer Awareness in Credit at the Credit Awards 2018. How can we help lenders to better understand the four million people in the UK who, at the moment, struggle to access mainstream financial services? For many people, a typical credit report may contain a bank current account, a couple of utility suppliers, a credit card and perhaps a mortgage. But what about those who haven’t opened a bank account, pay for their electricity and gas using a top-up meter and live in rented accommodation? How can we work with mainstream lenders so they can better understand these customers, and as a result, make informed decisions? Innovation is the only answer. At Experian, we believe finding new sources of data is the key to delivering better outcomes for people who have thin files. Our work with The Big Issue Invest on the Rental Exchange, which will mean 1.2 million tenants see their rental payments on Experian credit reports for the first time, is a great example of expanding our perspective on the regular payments people already make. By sharing this information with lenders, it opens up new possibilities for tenants across the UK. Our research on thin files has accurately sketched the issue in front of us, and we are making progress in raising awareness among consumers about how they can improve their credit profile – even easy, free choices such as registering to vote. Engaging with your financial information is the first step to improving it. Our challenge is now to find more sources of data which will allow lenders to recognise potential customers who, up until now, they have been unable to support. But more than that, to offer the analytics which turns data into an invaluable resource when making decisions.
There’s no escaping the fact that data is universal; enabling our choices, fuelling our economy, informing decisions and shaping our ideas. It’s influence, driven and shaped by the digitalisation of our culture, is only set to expand as we enter the next decade. As the world becomes ever more connected, the sheer volume of available data will continue to grow at a substantial rate. So too will the range and variety of that data. With that comes huge opportunity for organisations to use data-driven solutions to not only deliver better outcomes for their customers, but take on some of the biggest challenges in society. At Experian, we believe data has the power to change the world for the better, and remain committed to creating new ways to drive innovation for the benefit of everyone. That’s why we’re proud to sponsor the very first ‘Data Excellence Award’ at the National Business Awards in November, championing the best examples of those working at the forefront of data and analytics. The ‘Experian Data Excellence Award 2018’ is designed to recognise organisations that are unlocking the power of data to create opportunities for people, businesses and society. If you understand that the value in data goes far beyond regulatory compliance, this is the award for you. It’s hugely exciting to be part of this year’s awards and we are looking forward to seeing some high-quality entries showcasing data excellence. Interested? Then visit the National Business Awards website for more information.
Today we announced our results for the last financial year. The results and the business growth are strong, and a reflection of the actions we have taken to build our success. While we posted some very good results – 8% total revenue growth for the year is great – but it is the people, the strategy and the execution behind those numbers that we are most proud of. In recent years, we intentionally set a course that started with a brand promise to power new opportunities for our clients while creating a better tomorrow for consumers and society. In the last year, towards our quest to achieve that promise, we have made significant progress: We have invested in technologies like API and analytical sandboxes to help us better serve clients worldwide and effectively and safely manage the data and decisioning tools that help our clients succeed; We have made key investments to add new sources of data – including the acquisition of Clarity Services in North America and our continued strategy to look at mobile phone data in EMEA and Asia Pacific to help those who are excluded from the traditional financial system; We have introduced new products for consumers that help them better protect their identities and help them effectively manage their financial profile and credit standings to help ensure financial access in today’s credit economy; and We have created innovations such as our “Text for Credit” offering, which not only makes it easier for consumers to have a seamless credit application process, but it also enables lenders to have a more productive relationship with consumers who are looking for loans. Those are just some of the efforts that underscore our financial results. But more important than the positive results is the fact that we achieved this growth while also staying true to our brand promise. We are doing great things around the world – for businesses, for people and for society. The possibilities and potential of data have never been more exciting or life-enhancing – and our belief remains that data is central to how we all live and has the potential to transform all our lives for the better. The work our nearly 17,000 employees are doing – and have been doing – is indeed transformational. And that is one result for which we couldn’t be prouder.
As the owner of one of those increasingly popular voice-controlled assistants, I get a weekly email from the supplier suggesting new things to ask it to do or help with. Rather conveniently, this week’s update arrived this morning and includes the suggestion: “[Hello], can you do maths?” I use the word ‘conveniently’ because among the various tasks on my to-do list today is ‘write a short blog about numeracy’. So now I have an introduction. Like literacy, numeracy – understanding and being able to apply numbers – is a vital life skill. They are both key foundations of our education from the earliest of ages and go on to support opportunity and achievement throughout our schooling, into the world of work and beyond. Low levels of numeracy in adult life can be a major obstacle to success. Most employers require at least basic maths skills. And if you struggle with numbers, making successful financial decisions about the money that going to work generates will be very challenging. But this is the reality for many adults today. In the UK, almost half of us possess the maths skills expected of an 11 year old. This is according to National Numeracy, a charity that champions the importance of good numeracy and provides tools to help people improve. So when National Numeracy asked Experian to support the UK’s first National Numeracy Day on 16 May we were delighted to say yes. I’m certainly looking forward to working alongside a number of other big brands as well as numeracy ambassadors Rachel Riley and Martin Lewis. It’s a great fit for Experian, a company with a long track record of supporting initiatives designed to help people make successful decisions, particularly around personal finances. Our learning resource Values, Money & Me is already used in primary-school classrooms around the country to help cement good financial habits from an early age. Similarly, millions of adults track the health of their credit with the help of a free Experian account, and use the built-in eligibility features to secure better deals on financial products. Like others, we firmly believe that maths skills and financial success are closely linked, so we’re delighted to be helping support and promote National Numeracy Day. We’ll be encouraging as many people as possible to tackle the National Numeracy challenge and, where necessary, to take follow-up steps to brush up on their maths skills and, as a result we hope, improve their financial futures. Written by: James Jones, Head of Consumer Affairs, UK&I
Elio Vitucci, CEO of Experian MicroAnalytics, authored the op-ed Financial Empowerment for the Emerging Market Consumer in U.S. News & World Report. To date, Experian MicroAnalytics has extended over 4.9 billion credit offers to the world’s unbanked people, and nearly half of those offers were in the past year. The new emerging market consumer is becoming empowered with tools and services needed for a better quality of life and economic vitality. Experian MicroAnalytics contributes to global progress by helping those with no credit history gain access to credit and financial products for their businesses and personal needs. In regions where financial history doesn\'t exist, understanding creditworthiness is a challenge. While only a small minority of people in emerging markets have access to credit services, the vast majority have access to mobile services — most of them on a prepaid plan. As such, an alternate credit identity can now be established. Financial services in the emerging world are drastically underserving the potential banked population. Long-term economic growth in the emerging world hinges on access to financial services. Unlocking the new consumer\'s credit capability is the new financial frontier. Learn more about how Experian is empowering emerging market consumers with financial products and services to improve quality of life and increase prosperity around the world.