discover the power of data quality

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Discover the power of data quality

Webinar: September 17, 2014

2©2014 Experian Information Solutions, Inc. All rights reserved.Experian Public.

� Current landscape

� Achieving data accuracy

� Case study

� Experian’s practices of cleansing and loading data

� Questions

Discover the power of data quality Agenda


Current landscape


Discover the power of data quality Current landscape


Discover the power of data quality Continued scrutiny

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6Nov 2013: CFPB puts debt collectors on notice re: fair practices

Dec 2013: CFPB orders mortgage company to refund $125M

Dec 2013: CFPB orders direct bank to pay $80M for discriminatory auto loan pricing

Jan 2012: CFPB launches its non-bank supervisory role (e.g., payday lenders)

Dec 2013: CFPB expands supervisory role of non-bank student loan servicers

Jan 2014 : CFPB begins action against mortgage kickbacks

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Jan 2014: Supervisory exams begin on larger collection companies. Findings: failure to investigate disputes

Apr 2014: SECURE Act proposed that would set requirements for credit bureaus, lenders, and data providers to maintain accurate data

June 2014: CFPB launches inquiry into mobile banking

Follow the bouncing ball…


Data furnishers required to receive and process additional documents regarding disputes

Operational dispute teams must expand process and procedures

Develop and implement better metrics

Discover the power of data quality Expanding control by the CFPB

December 2012: CFPB announces e-Oscar enhancementsProvides capability for credit reporting agencies to send additional consumer-provided documents to data furnishers as part of disputes view

Went live in August 2013

September 2013:CFPB puts ALL data furnishers on notice regarding duty to investigate consumer credit report disputes

Experian

Equifax

TransUnion


� Industry insight and research results suggest that there should be a continued focus on the quality of consumer data to maximize its usage for intelligence

� Validating the accuracy of data will achieve a level of ‘readiness’ for regulatory change

Discover the power of data qualityWhat does the research tell us?

Data quality: It’s a journey, not a destination.

Regulatory change is among the Top-5 biggest concerns of the world’s major financial markets.

� Data needs to continually be refreshed or over time, it will erode

� Estimated 2.1% of contact information goes bad if untended for one month¹

� More than 140 companies found that, on average, companies estimated they were losing an average of $8.2 million a year because of poor data quality²

� Only one in two companies say they are highly ready for regulatory change³

� The intention is that budgets will increase 12% to support dedicated resources for regulatory changes³

Data qualityRegulatoryreadiness

¹ Pitney Bowes Software, The ROI of Data Quality, 2-5 | ² Gartner, “Organizations Perceive Significant Cost Impact from Data Quality Issues” Ted Friedman as noted in Pitney Bowes Software, The ROI of Data Quality, 2-5 | ³ www.sungard.com/regulatoryreadiness

”“”

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Achieving data accuracy


� Experian offers Data Integrity Services to provide data furnishers insight into their data submissions, failures, disputes and peer benchmarking

� To help clients achieve data accuracy, our packages deliver actionable output and implementation solutions

Discover the power of data quality How Experian helps to achieve data accuracy

Increased pressure from the CFPB and other government agencies are raising the standardsof data accuracy

� Regulatory scrutiny

� Customer experience

� Operational efficiency

New and ongoing challenges

� Improvement to data quality

� Positive customer experience

� Reduced operational costs

Data Integrity Services benefits


Data Integrity Services

� A comprehensive solution and methodology for assessing data quality, with focus on Metro 2 reporting and disputes (E-Oscar)

� Uses advanced analytics and peer benchmarking to produce information that is both insightful and actionable

Discover the power of data quality Experian Data Integrity Services

Analytics

Metro 2 reporting assessment Dispute metrics, E-Osca r

� Review at a portfolio and / or enterprise level

� Review data completeness for key fields

� Provide cross-field validation to ensure consistency

� Ensure reporting practices align with legal requirements

� Analyze dispute frequency by:

► Product type

► Contact channel

► E-Oscar dispute reason

� Analyze dispute resolution based on amount of time taken and dispute result

Peer benchmarking and trending**Optional feature – included in more comprehensive packages


Discover the power of data quality Data reporting tools and custom data review packages

Data Integrity Services

Data reporting toolsCustom data review

packages

Metric Report™*

Metric Report™* Base report**Base report** DataArc™DataArc™ DataArc Plus™DataArc Plus™

DataArc Custom™DataArc

Custom™

*Report not currently offered to all clients**Report not built at this time

Data Integrity Services offers reporting tools and metric packages to help improve data quality relative to consumer trade lin e and dispute data


Discover the power of data quality Data Integrity Services product suite

Product suite

DataArc Custom™DataArc

Custom™

True cost avoidance and risk mitigation through a customized, tailored assessment and implementation solution of Metro 2 and dispute data across multiple businesses

� Tailored

� Comprehensive

� Actionable

� Dedicated consultant (internal and/or external)

DataArc Plus™DataArc Plus™

Improve data accuracy, customer loyalty and experience and reduce costs by gaining in depth insight into dispute data and peer benchmarking

� Understand alignment with industry and peers

� Best practices

� Reduce disputes across multiple portfolios

DataArc™DataArc™

Improve data reporting accuracy through analytics and visibility of Metro 2 data submissions and failures and dispute metrics

� Better accuracy

� Trended dispute data

� Reduce disputes

Metric Report™

Metric Report™

Identify and help correct Metro 2 submissions and failures through recurring metric reports

� Low cost

� Visibility into problem areas

� Account-level detail


Case study


Case studyA dispute handling case study

Objective: Reduce inbound disputes by concurrently analyzing, reason and resolution

Scope:Credit bureau reporting disputes are received throu gh three channels: e-OSCAR, correspondence and voice

BenefitsImproved customer experience, improved process efficiency

Outcome:Reduce dispute volume and resolution time

Success metric:Number of disputes and re-dispute percentage


Correspondence Voice e-OSCAR

Case studyA case study with dispute trends and insight

2011 2012 2013

2013 Disputes by Channel e-OSCAR by Bureau

e-OSCAR Disputes by Volume

Insights

� e-OSCAR was the primary dispute channel in 2013 followed by voice and correspondence

� e-OSCAR volume is distributed unequally across bureaus

� e-OSCAR volume has increased year-over-year

Source: Internal Data Warehouse


Case studyDispute handling – volume trends by channel

Correspondence Trend (2013)

Insights

� e-OSCAR volumes are trending up slightly

� Voice linear trend shows gradual reduction

� Correspondencelinear trend shows a marked reduction


e-OSCAR Trend (2013)

Voice Trend (2013)

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep -13 Oct-13 Nov-13 Dec-13

Corres

Linear (Corres)


Voice

Linear (Voice)


eOscar

Linear (eOscar)


Case studyDispute code distribution – 2013 landscape


Dispute Codes Distribution

Six dispute codes comprise 80% of total dispute cases


Case studye-OSCAR channel: re-disputes

42%

22%

13%

9%

6%4%

2%1% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 20 28 36

85%

Insights

� 42% of dispute cases were raised only once in 2013

� 58% of dispute cases were raised two or more times

� 85% of re-disputes were disputed two through five times in 2013

Re-disputes

Number of re-disputes

Percentage of re-disputes



Discover the power of data quality Best practices – an investment evolution

What are the key strategic questions we are trying to answer in 2014?

We want to ensure that our analytics and research efforts are aligned with our consulting partner to address the key strategic questions that we are trying to solve for the member

HOW CAN WE

improve the customer experience?

HOW CAN WE

strengthendisputes linkage?

HOW CAN WE

provide best resolutionto customer from our data?

HOW DO WE

limit investment dollars across channels?

HOW DO WE

increase the data accuracyand seldom leads to disputes?

HOW DO WE

automate and simplify?

HOW DO WE

reduce overall operational costs


Experian’s practices of cleansing and loading data


� Experian is committed to ensuring the integrity of data throughout the entire data lifecycle and continues to build our repository of consumer credit information

► Experian obtains consumer credit information from over 13,000 data furnishers

► Data furnishers contribute 4.2 billion trades to our database

� Furnishing credit data to Experian, benefits both clients and consumers

Discover the power of data quality A client’s evolution – investment in people and practices

Consumer credit report

� Establish payment history

� Increase tradeline thickness

� Opportunity to improve score

� Reduce ‘unscorable’ consumers

Customer experience

� Potentially provide score and create consumer awareness

� Establish payment history

� Positive customer experience through validation of data quality

Data furnisher

� Validate accuracy of on-file data and submissions

� Fewer delinquencies and / or charged-off accounts

� Broaden lending and identify sales opportunities

� Operational and process improvements


� 100% of our data comes to Experian via secure electronic submission

� Approximately 98% of data to file in 24 hours

� Updated nationally, 24/7

� Our overall rating for data coverage at the national level is dominant at over 97%

� Acquire, quality-check and load data for more than 13,000 data furnishers

� Accuracy

� Consistency

� Completeness

� Industry-differentiated approach

Discover the power of data quality The journey continues – ultimate governance and oversight

FreshnessFreshness

CoverageCoverage

IntegrityIntegrity


Learn more about the key ingredients for a successful data quality program. Download “The Power of Data Integrity and Quality – an Experian Perspective.”

www.experian.com/data-accuracy

Contact us:

� Email: [email protected]

� Phone: (888) 765-2421

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