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#vision2016

Achieving growth

initiatives with

decisioning, data

and analytics

A BarclayCard case study

© 2016 Experian Information Solutions, Inc. All rights reserved.

Experian Public.

Introducing:

#vision2016

Brett Brandau Barclay’s

Craig Wilson Experian

3 © 2016 Experian Information Solutions, Inc. All rights reserved.

Experian Public. #vision2016

NEW

MARKETS

Just Do It!

Use the broad reach of Experian

capabilities to launch a new

product in a competitive

consumer lending environment


Experian Public.

#vision2016

Tri-bureau leveled attributes enabling best-in-class modeling and decisioning

Attribute Toolbox™ to aggregate data and calculate attributes

PowerCurve®

decisioning platform

Income models

Estimated interest calculator

PowerCurve® enabling customer level decisioning

Credit triggers

TrueTrace™ providing robust consumer linking across data to identify and locate customers

Agency allocation

Industry-leading Identity verification platform with single integration

Best-in-class consumer authentication capabilities

Covert fraud risk assessment of devices in digital channels

CIP and underwriting process efficiency

ConsumerViewSM providing robust targeting and segmentation

Audience selection and digital targeting and display capabilities

Cross channel marketing platform

Generic / custom scores

Experian has a full suite of capabilities

for driving new product launch

and sustained growth

Optimization | Regulatory compliance

4

Underwriting Account

management Fraud Marketing


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#vision2016

Industry leading data and attributes

Trended attributes

Total Annual Plastic Spend (Experian TAPSSM)

Estimated Interest Rate Calculation (EIRCSM)

Originations software

PowerCurve®

Industry expertise and consulting

Strategy design

Experian solution set


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Product needed to leverage internal

support and key suppliers to execute

Sizing the market (business intelligence)

Customer application process

Prospect targeting

Enterprise software (PowerCurve®)

Pricing

Disbursement

Leveraging a strategic partnership


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IntelliViewSM – market insights

Sizing volumes of originations and understanding seasonality

► Growth trends year over year

► 1Q volumes below other quarters

Initial market insights

Personal loan


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Innovative data

Taking insights into action


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A new view of the consumer

Payment behavior:

MIN PAY – 2% Annual card

spend:

$7,500

Avg month yield:

$ 74

Average effective APR

16.99%

In the market?

Bankcard

BT Index (0-999)

875 BTs in last 12

months

2

Revolving trades:

4

Transacting trades:

0

Risk Index rating:

Unstable

Utilization in last 6 months:

+ 35%

Credit card bals last 6 months:

+ $8,000

BEHAVIOR

RISK REVENUE

RESPONSE

Trended data allows Experian to reveal a comprehensive view of a consumer’s credit behavior to improve risk, response and profit…


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#vision2016

10

EIRC RevolvingSM

and Experian TAPSSM

New tools for interest paid and spend behavior

How much do your prospects spend? How much interest do they pay,

at what rate?

This detail is now available, providing segmentation that quickly reveals prospects who have the potential to deliver meaningful profitability

2012 <$75

Low

$75 – $500

Medium

>$500

High

<$5,000

Low

830 807 784

$883 $2,255 $2,519

$4 $238 $1,421

$5,000 –

$20,000

Medium

875 857 810

$11,159 $10,946 $10,823

$10 $234 $1,962

>$20,000

High

894 885 848

$51,158 $49,979 $61,180

$9 $246 $2,216

Interest paid on all cards1 C

ard

sp

en

d

Segment

average

VantageScore®

Experian TAPSSM

Interest paid

1 U.S. population distribution VantageScore® >700


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11

Revenue segment distribution

Over 30% of U.S. cardholders produce a little interest or interchange

revenue

Surprisingly, they receive almost as many prescreen offers as other prospects

2012 <$75

Low

$75 – $500

Medium

>$500

High

<$5,000

Low 32% 7% 6%

$5,000 –

$20,000

Medium

13% 8% 9%

>$20,000

High 12% 6% 7%

Interest paid on all cards1 C

ard

sp

en

d

32% of the U.S.

population are

generating limited

revolving interest

revenue or

interchange

revenue from

spend

1 U.S. population distribution VantageScore® >700


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#vision2016

Let data lead the analytics

Custom archives

Premier AttributesSM

Trended attributes

Performance tags

Market sizing


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Originations software

Integrating data and decisioning


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A better customer journey

Driven by confident customer decisions

Decision

execution

Data

access

Integrated

design studio

Unified

platform

Monitoring

and reporting

Modular

framework


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Data / input

(Credit and non-credit data)

Experian Decision Analytics

Technology overview

PowerCurve® platform

Design environment (Studio)

Operational environment (Run time)

Strategy monitoring and reporting

Lifecycle production

Originations Customer

management Debt

Management

Fraud and identity

Shared systems

Data connectivity and enrichment

Strategy ManagementSM

Marketswitch Optimization®

Analytics

(Model development)

Clien

t syste

ms

Request

(Call-in)

Response

(Decision)


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Strategic support

Business intelligence and strategy design


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Experian consulting services approach


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#vision2016

Business intelligence is a customized, comprehensive, consultative offering that allows Experian Decision Sciences to partner with your organization to better understand your customer base

Custom business intelligence

Overview

Ability to contrast an organization to the overall market and specific competitor groups

Unique data perspective that incorporates the use of both credit and demographic information

Contrast new vs. existing customers

Trend analysis over time

Profile customers versus prospects

Analytically derived conclusions

Customized solutions


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Background

Barclays engaged Experian to assist in their venture

into the unsecured personal installment loan market

Analysis and

reporting

24 and 36-month performance periods were analyzed, and reports were created to return to Barclays

Consolidators and

non-consolidators

Based on the difference from month 0 to month 3, consolidators and non-consolidators were identified

Overview of the

entire market

Initial review of the entire personal loan market

Unsecured personal

loan definition

Unsecured personal installment loans were defined using agreed upon enhanced type codes from Experian’s business intelligence definition of an unsecured personal loan


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20

Strategy design

Methodology

Assess current champion

or challenger strategy

Review 2 Develop new

challenger strategies

Design 3

Ensure operational

deployment

Implement 4

Track performance

against expectations

Monitor 5 Understand results of

strategy performance

Assess 6

Define strategy,

objectives and goals

Plan 1


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Fraud strategy uses many layers of control

PowerCurve® – credit policy

Enterprise negative files Phase 1

Precise ID® – account opening score

Fraud ShieldSM indicators Phase 2

FraudNet – digital risk mitigation and enhancements for open market growth

Phase 3


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#vision2016

Recommendations

Fraud review applications according to red refer cells

Pass fraud review for applications according to green and yellow accept cells

Fraud ShieldSM match codes provide additional controls

Waterfall through BCUS negative file

Review all applications high dollar exposure

Managing fraud risk exposure

Volumes

Performance

Score band

Total

Volume

Fraud

Volume

413-427

Total

Population

Fraud

Population

Score band

Total

Volume

Fraud

Volume

379-412

Total

Population

Fraud

Population

Score band

Total

Volume

Fraud

Volume

369-378

Total

Population

Fraud

Population

Score band

Total

Volume

Fraud

Volume

345-368

Total

Population

Fraud

Population

Score band

Total

Volume

Fraud

Volume

272-344

Total

Population

Fraud

Population

Score band

Total

Volume

Fraud

Volume

0-271

Total

Population

Fraud

Population

Loan Amt


Experian Public.

#vision2016

Many banks are looking for new opportunities

for growth and launching new products is a way to grow loans and acquire new customers

The personal loan market is a dynamic

marketplace opportunity for growing loans and acquiring new customers

Take advantage of strategic partnerships with industry and industry leader in data, software and analytics to execute your growth initiatives

Achieve growth!

The personal loan market has continued to evolve with new market participants

and a changing consumer preferences. Experian can help you develop a go to

market strategy and implement new capabilities to achieve success.


Experian Public.

For additional information,

please contact:

@ExperianVision | #vision2016

Follow us on Twitter:

#vision2016 [email protected]


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achieving growth initiatives with decisioning, data # ...€¦ · achieving growth initiatives with...

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