Today the UK Government’s Department for Culture, Media and Sport (DCMS) launched its consultation into the new data strategy for the UK. The consultation lays out an ambitious approach to protect consumers and deliver positive change in the UK. We welcome the announcement and share its vision for a thriving, innovative digital Britain, one where people feel confident that their data is looked after and know that their privacy is protected. We’ve always believed that data has the power to help improve lives, businesses and economies both in the UK and around the world. Over the last 18 months data-driven services have helped people manage their money during unprecedented economic and financial uncertainties; helped small businesses connect with their customers; and supported charities, the NHS and local Government in deploying resources and support to those who need it the most. Now, data can help rebuild the economy, nurture the green shoots of future success, help people take control of their financial lives, and position the UK as a global leader in consumer protection and technological innovation. We look forward to engaging with the consultation process, and working with stakeholders across the ecosystem to help shape that future vision. You can find the full consultation document here and this morning’s press announcement from the Government here.
We believe every individual deserves the opportunity to reach their fullest financial potential through fair and affordable access to credit. While leveraging data, analytics and technology are key components of this, we must also ensure consumers understand how credit works and the ways it can be used as a financial tool throughout their lifetimes. This notion is the impetus behind our annual State of Credit report. Now in its twelfth year, this report takes a close look at how consumers are managing their credit histories to educate them about the factors influencing their financial health. This year’s report shows the average credit score has climbed to 695 – the highest point in more than 13 years. Many consumers were managing credit well before the pandemic’s arrival and the accommodations afforded by the Coronavirus Aid, Relief and Economic Security (CARES) Act may have helped consumers protect their financial health. At the same time, stay-at-home orders and record savings levels may have contributed to fewer missed payments, lower credit utilization rates and lower debt. While these findings are positive, we recognize they do not tell the full story. There are tens of millions of consumers who lack fair access to credit because of a limited credit history. Low-income consumers and communities of color are disproportionately credit invisible, preventing them from obtaining low-cost, traditional financial services. There is significantly more work to do to ensure all consumers have fair access to credit. We are committed to working with lenders, regulators, businesses, consumers and partners to eliminate credit invisibility and improve financial equity and access. Our meaningful partnership with Operation HOPE, the largest financial literacy nonprofit in the U.S., is one example of this commitment brought to life. Operation HOPE has goals that align with ours: to uplift disenfranchised youth and adults from poverty to thriving in a credit ecosystem. Together with Operation Hope, we are making a tangible difference in financial inclusion by helping consumers raise their credit scores through financial coaching, education and tools like Experian Boost. As part of this year’s State of Credit report, we also helped introduce Operation HOPE’s new HOPE Financial Wellness Index. This new tool will be a valuable resource for the Hope Research Institute who plans to leverage it to identify the communities most in need of financial literacy programs. “While consumers on average are managing their credit histories well, we know there are many communities in critical need of more financial education and resources,” said John Hope Bryant, Operation HOPE founder and CEO. “By helping people raise their credit scores, we are empowering them to take advantage of one of our nation’s most democratic tools. From housing and employment to healthcare and education, credit worthiness can be leveraged to improve our overall quality of life. We’re committed to using the HOPE Financial Wellness Index as a force for good in the communities we serve.” Through our investments in expanded data, technology, advanced analytics and new innovations, we will continue to help lenders identify consumers who are excluded from the credit ecosystem, but who can fulfill their financial obligations and pay responsibly. At the same time, we will continue to take strides that empower consumers to take control of their financial lives. For additional free educational resources and more information about this year’s State of Credit report, I encourage you to visit the links below. State of Credit report findings: https://www.experian.com/blogs/insights/2021/09/state-of-credit-2021 Join Experian’s weekly #CreditChat hosted by @Experian on Twitter with financial experts every Wednesday. Bilingual and Spanish speakers are also invited to join Experian’s monthly #ChatDeCrédito hosted on Twitter at 3 p.m. Eastern time beginning September 16. The Ask Experian blog includes answers to common questions, advice and education about credit Positive telecom, utility and streaming service payments can be added to your Experian credit report by visiting experian.com/boost Additional resources available at https://www.experian.com/consumereducation
The summer months in Italy often provide us with a short time to take a break and recharge our batteries as we head into the second half of Experian’s financial year. Yet, there is still the opportunity to move important projects further forward. In July, Chief Operating Officer of Experian EMEA Marco Benvenuto announced we had agreed to partnerships with two non-profit organisations as part of our United for Financial Health programme. MircoLab and AMS both have goals that align with ours in working to reduce financial exclusion. Today, I can provide you with more details about our partnership and how we will help groups of people who find it hard to access fair and affordable credit because they lack relevant financial data. These credit “invisibles” can often come from vulnerable groups such as NEETs (Not in Employment, Education or Training), foreign caregivers and female victims of violence. The Covid-19 pandemic has been a challenge for us all, not least the people in these groups. Working with our partners, the IncludiMi initiative aims to create a new credit assessment based on data that can contribute to a more inclusive measure once analysed. We will also strengthen the skills of the people involved by offering financial education and mentoring them to become economically independent. At the heart of the new programme is the planned IncludiMi app, which will allow credit “invisibles”, including the unbanked, to have their financial health estimated by reviewing non-traditional data. People will use the app to create and understand their personal and family’s budgets while following tips and suggestions from the financial education sessions led by experts at our partners. We are excited about the potential this partnership – and the United for Financial Health programme overall – has to improve the lives of so many people by tackling financial exclusion. I look forward to providing you with further updates on our progress in the coming months.
When it comes to access to credit, we know that it’s not equal. There are barriers some consumers face, and that negatively affects how they can spend, save and borrow money. We have a responsibility to find and facilitate solutions. Financial inclusion is a core commitment for us. That’s why we are excited to launch a first-of-its-kind program called Inclusion Forward – Experian Empowering Opportunities™. This initiative harnesses Experian’s data, analytics and technology that can help clients create and provide more affordable credit access. Additionally, Inclusion Forward™ will provide ongoing resources to help consumers better understand their credit health, particularly in diverse communities. Inclusion Forward™ will focus on three key areas: homeownership, small business entrepreneurship and financial education. It can help companies achieve their diversity, equity and inclusion goals, but most importantly, it will help consumers achieve their life goals. Closing the wealth gap is key in racial equity efforts. By unlocking the power of Experian data, clients can better understand the financial challenges consumers from diverse backgrounds may face. This can lead to creating solutions and education for all consumers. We look forward to sharing more about Inclusion Forward™ and how this program is making a difference in underserved communities. To learn more about Experian’s commitment to diversity and inclusion, click here.
Experian works hard at having a workplace culture where everyone feels a sense of belonging. We’re constantly evolving and improving, and proud to share several recent acknowledgements that we’re on the right track. We have a robust multi-generational employee base, and know that the diversity of perspectives and experience spark innovations that lead to financial inclusion for all. Millennials make up the largest portion of our workforce and we’re thrilled to be named a Fortune Best Workplace for Millennials. Millennials want to work for organizations that offer fair pay and meaning, inclusive benefits beyond parenthood, gender equity, flexibility and safe spaces, according to Great Place to Work (GPTW). Employee comments to a GPTW survey indicate our team believes we are doing well: “One question you ask is do we hire people who fit in… No, we don't always – which is why we can innovate and create change – if everyone agrees on every approach, we wouldn't be nearly as successful as we are. That's one thing that makes it a great place to work – our diversity of thought and approach to problems.” Gender equity has been a focus of ours, from recruiting to talent development. Almost half of our new hires, current employees and promoted talent identify as women. Further demonstrating our commitment to diversity and inclusion, former Experian North American CEO Craig Boundy is ranked the #12 Best CEO for Women 2021 by Comparably. This ranking is based on 10 million ratings across 60,000 companies, Every CEO on the list is in the Top 5% of all CEOs rated by female employees. Experian also earned several other awards from Comparably: Best HR Teams of 2021 Best Company Outlook of 2021 Best Places to Work in Los Angeles 2021 Top 10 for Career Growth “I've worked for a ton of different technology companies and have never seen such a strong leadership team nor seen a company invest so much in their employee's future!” (quote from GPTW survey) “Opportunity to grow and move around various lines of business through your career within Experian – allows you to continue to challenge yourself and grow without leaving the organization.” (quote from GPTW survey) Comparably’s Annual Best Places to Work Awards rely solely on the input of employees, which makes these honors especially meaningful. We appreciate their feedback and their contributions every day. Check out our 2020 Power of YOU report to learn more about our coworkers, leadership and how we serve our communities.
There are times in most of our lives where we can't get access to the financial system in a way that we want. Be it for a mortgage, a car, or a business loan. We've all experienced the frustration when you feel you're on the outside of the system and you can’t do the things you want for yourself or your family. At Experian, it's our job to change that. We want to make sure everybody is included and has access to fair and affordable financial products. Financial inclusion is fundamental to our business. With our focus on increasing access to financial services, improving financial literacy and confidence, and helping people manage their financial lives; we help power people and businesses to create their future. In fact, the United Nations includes access to financial services, such as credit and microfinance, among its Sustainable Development Goals. Access to affordable credit opens the door to opportunities for people to transform their lives – from homes and healthcare to education and entrepreneurship. This has never been more important than it is today. Creating a Campaign to Drive Financial Health Worldwide As the pandemic took hold in 2020, we stepped in with data and analytics to support governments, health services and national emergency response efforts through major initiatives such as COVID Radar in Brazil and Experian CORE (COVID Outlook & Response Evaluator). These are just two examples of how we can use our data and expertise to make the biggest difference to society. It soon became clear that the impact — not just on physical health, but on financial health — would be far-reaching for people around the world. We looked at how we could use our expertise and resources to help vulnerable communities through the crisis and focused on financial education as the best way to strengthen their resilience and support their road to recovery. We launched our United for Financial Health programme. We rapidly established 11 NGO partnerships across our biggest consumer markets to deliver targeted financial education for some of the communities hit hardest by COVID-19. By the end of the year, we had reached nearly 35 million people, more than double our original goal of 15 million, and we’re not stopping there. We aim to reach 100 million people by 2024. Part of our efforts include our member relationships around the world. This year, we surpassed the milestone of 100 million direct relationships with consumers globally and delivered further innovations to support people through our business, with the launch of products like Experian Boost in the UK and Serasa Score Turbo in Brazil. This, of course, is on top of our ground-breaking Experian Boost launch in the United States in 2019. Our goal is to have a direct relationship with as many people as possible; to truly become the Consumers’ Credit Bureau and power financial opportunities for all. Driving Innovation with Social Purpose Our culture of innovation helps us harness opportunities to drive business growth. We are continually investing in product innovation and new sources of data to address emerging market opportunities that can make a real difference to global communities. In 2020, around 1,000 “innovators” from across Experian joined our annual Future of Information Conference, which was held virtually because of the pandemic, to encourage them to think differently in their work. Topics included fairness in artificial intelligence, transforming agribusiness and enhancing the consumer healthcare experience. Teams at our DataLabs in Brazil, Singapore, the UK and the USA tap into our culture of innovation to continually create new solutions to global challenges. The result of all this is that our Social Innovation products have now reached 61 million people since 2013. We aim to reach 100 million by 2025. As John Hope Bryant, CEO of one of our NGO partners Operation HOPE, says, “Experian’s commitment to unlocking the power of data to create opportunity means more people will be set up not just to survive, but to thrive in the months and years to come.” In this year’s Sustainable Business Report our commitments come through stronger than ever. We are raising our ambition and aiming to reach 100 million people through our social innovation products by 2025. Our goal is to reach 100 million people through our United for Financial Health campaign by 2024. We have also pledged to protect our planet by becoming carbon neutral in our own operations by 2030. We know we’ve got more work to do and we remain focused on using our business to make real and sustainable change. With social innovation running so deeply through the core of our culture, and our commitment to improving global financial health front and centre of our thinking, we will continue to push to find new solutions to help people, serve communities and protect the environment, helping to create a better future for all. All of this is very personal to me. I passionately believe we can and should drive to make a difference in society. I serve as executive sponsor of our ESG programs and this isn’t just another corporate program, it’s at the heart of what we do as a company to power financial opportunities. My personal pledge is to continue to keep you updated, as we progress our agenda to sustainable environmental and societal change. Read the full SBR report here.
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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.
The advertising ecosystem has seen significant transformation over the past few years, with increased privacy regulation, changes in available signals, and the rise of channels like connected TV and retail media. These changes are impacting the way that consumers interact with brands and how brands understand and continue to deliver relevant messages to consumers with precision. Experian has been helping marketers navigate these changes, and as a result, our marketing data and identity solutions underpin much of today’s advertising industry. We’re committed to empowering marketers and agencies to understand and reach their target audiences, across all channels. Today, we are excited to announce our acquisition of Audigent—a leading data and activation platform in the advertising industry. With Audigent’s combination of first-party publisher data, inventory and deep supply-side distribution relationships, publishers, big and small, can empower marketers to better understand their customers, expand the reach of their target audiences and activate those audiences across the most impactful inventory. I am excited to bring together Audigent’s supply-side network as a natural extension to our existing demand-side capabilities. Audigent’s ability to combine inventory with targeted audiences using first-party, third-party and contextual signals provides the best of all worlds, allowing marketers to deliver campaigns centered on consumer choices, preferences, and behaviors. The addition of Audigent further strengthens our strategy to be the premier independent provider of marketing data and identity, ultimately creating more relevant experiences for consumers. To learn more about Experian and Audigent, visit https://www.experian.com/marketing/ and https://audigent.com/.