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How much do we know about our tenants? Jon Rayfield, Client Director - Local and Regional Government, Experian

[email protected]

Mobile 07885 675215

mailto:[email protected]

© 2010 Experian Limited. All rights reserved.

2

Experian Services

Experian specialise in the provision of information (and software) around five main services:

● Rental Exchange (Bii) – an appeal!

● Tenant (customer) insight

● Prioritising Collection efforts

● Fraud services

● Procurement

Experian data is used to focus attention and recognise the differences in your tenant base. Tenants ARE NOT ALL THE SAME


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Rent arrears increasing –

payment direct to head of

household

8.5 million rented properties

4.8 million SOCIAL

3.7 million PRIVATE

RENTAL EXCHANGE applies to

both SOCIAL and PRIVATE

tenants

FINANCIAL INCLUSION is THE biggest tenant

benefit from Rental Exchange

3 fifths (2.2m) private renters &

1 fifth (763k) social renters

expect to buy property in near

future

37% social renters & 12%

private renters expected to

buy current homes

Tenant “footprint” is often thin

Families increasingly using pay day

loans (PDLs) & Short Term lending

to cover rent . AFFORDABILITY ?

Rental Exchange – background factors


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Good rental payment history will

enhance an individuals credit score

Tenant benefits

Enhance Credit Prove

residency Increase tenancy

stability Reduce moving

costs

Tenant Rental

Exchange Website

Pro

po

siti

on

So

luti

on

H

ow

The Rental Exchange will confirm

the renters name & address

Businesses can now access

previously unavailable rent payment

data to offer good payers

favourable credit

Demonstrating a good rent payment

history will give tenants a better

chance of securing tenure with a

prospective landlord

Increased tenure will mean tenants

will have to move less saving them

time and money

Tenants demonstrating a good

payment history will lead to landlords

wanting to keep the tenant & not lose

them increasing stability


5

Housing Association benefits

Accurate

affordability

assessments

Improve collections

through data

sharing

Reduce Voids &

illegal subletting Demonstrate

Corporate social

responsibility

Pro

po

siti

on

So

luti

on

H

ow

File submission data

sharing with Experian

Through the Rental Exchange

HA’s can help tenants with access

to credit, fuel poverty, ID

identification & Universal Credit

HA’s can help flag where there are

issues like fuel poverty or tenant are

in difficulty in paying back credit

through understanding outgoings

Rental data can enhance existing

collections processes by sharing

where a tenant has moved, making

it easier to collect


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Rental Exchange

Please consider inputting your data into this scheme, as ALL HA’s piloting the scheme

are big advocates of it, and around 60 HA’s are in the process of joining this data

sharing programme

It does require tenant consent (tenant agreement or permission that their data can be

used in this way)

Tenant benefits are thicker “footprints” which would equate to cheaper credit. (There

are many other benefits)

Housing Association benefits are greater access to accurate information on which

decisions can be taken.

Experian contact: [email protected] - mobile 07970 214463

Big Issue contact Sarah Forster – mobile 0771 423 4823

[email protected]

www.bigissueinvest.com <http://www.bigissueinvest.com/>

http://www.bigissueinvest.com/

http://www.bigissueinvest.com/


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Housing Associations with whom Experian work

Richmond Housing Partnership

Aster Communities

Eastend Homes

Gentoo

Helena Homes

Sanctuary Housing

Circle

A2 Dominion

First Wessex

West Country Housing Association

Radian Housing...

So we work with many HA’s – but relationships are quite new – as this

sector has not historically needed Experian services.

This is changing now


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Experian data – what we know

Demographics

•Age

•Ethnic Origin

•Length of residency

•Head of Household

•Lone Parent

•Presence of elderly parent

•Presence of young person

•Households with children

•Number of children

•Age of children

•Number of adults in household

Financial Details •Personal income

•Household Income

•Outstanding Mortgage

•Directorships

•Employment Status

•Financial Stress

•Personal Debt

•Small or Home Office

Property details •Property Age

•Residence Type

•Number of Bedrooms

•Tenure

•Property Value

•Property Coordinates

•Gas / Electricity Consumption

•Water consumption

•C02 Emissions Poverty / Vulnerability Variable •Fuel Poverty

•Household Poverty Risk

•Immediate household poverty risk

•Income less than 60% median for England

•Likelihood of household to be receiving benefits

•Short to medium term poverty

•Long term unemployment

•Likelihood of households to contain dependent children

and no employment

•Likelihood of household not to have a car

•Educational Attainment

Possible Experian Person or Household Variables – up to 200 other options available.


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Experian data – what we know, and typical applications

Future Tenants - Individual financial / credit profile (How financially stable is this future tenant, consider safeguards Identification check/ (Is this person who they say they are, does their history profile match Experian’s) Financial risk profiling (potential to fall into arrears), Demographic segmentation (what type of person is applying to become a tenant) Current Tenants - Financial Vulnerability and Stress Indicators (utilising Experian’s vast consumer data base we can assess an individual’s financial profile) Social housing tenancy fraud / verification - who is living in your properties Risk profiling (Experian can risk assess and rank individuals based on their potential to fall into arrears) Demographic segmentation (what is the profile of all of your current tenants, services and engagement Debt Prioritisation - can pay, won’t pay, can’t pay, settlement, write off – evidence based

Vulnerability Indicators (social housing tenants obviously often have complex needs that you may or may not be aware of, Experian can help Current bank accounts (with universal credit about to become a reality getting tenants to pay their rent by direct debit is a step in the right

direction). Former Tenants - Tracing – 30% of former tenants often live elsewhere

Debt Prioritisation Service (Experian can profile former tenants to show their ability to pay back a debt) Constant review service (missing former tenants)


10

Mosaic Profile – example DD payers

Where CURRENT

DD payers are profiled

and from which “over”

and “under”

representation

is calculated.


11

Mosaic Profile – Type Level

Group observations can be refined to type level for extra discrimination


12

Bank Wizard Absolute

Obtain confidence

score on match

Confirm existence

of an account

Identify closed

accounts or where

owner is deceased

Address

Customer

ID

Bank

account

details




Harnessing the power of insight to maximise collections


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WE CURRENTLY PAY HOUSING BENEFIT DIRECTLY TO ONE MILLION PEOPLE IN THE PRIVATE SECTOR AND THAT WORKS PRETTY WELL”

Steve Webb – Work and Pensions Minister

http://www.bbc.co.uk/news/uk-21756567





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Debt Management: The Experian Approach

Supporting Best Practice

Benchmarking & Process Review

Data Cleansing

Single Debtor View

Web Collect

Triggers

DCA / Bailiff Panel

Management

Supporting Collections

Action

Citizenview

Debtor Information

Service

Debt Prioritisation

Service

Tallyman

Power Curve

Providing Debtor Insight

Debtor Management Process

Autotrace Plus

Supporting Case

Management


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Collection efforts around dynamic software

Collections Context sensitive user interface for effective collections

Configuration Simple & flexible collections infrastructure definition

Operations Behind the scenes processing

Management information Best practice MI reporting & measurement

Tallyman

Databases


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Simple, intuitive strategy definition

Customers & Accounts flow through each rule

Each node represents a

decision based on business rules

If the decision is positive the next rule is assessed

down the tree

The appropriate treatment can then be applied, for example a fully automated treatment path

…or a manual treatment path If a decision is negative…

….the next decision point down is analysed

Changes of Status will re-segment customers and

accounts


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Getting to grips with customer profile

Focus on affordability & financial reality

Shape the strategic conversation


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Affordability

No households could afford to buy

a home of equal size in the borough

1% of all RHP households could

afford to rent a home of equal

size at the average market rental

price in the borough

25% of all RHP households could

afford to rent a home of equal size

at the lowest available market

rent although supply is severely

limited

EXTRACT : Affordability


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• There is a close correlation of income

to arrears

• 1 in 3 households have an income of

less than £15,000 and this group accounts for approximately a third of

total rent arrears

Customers

are in rent

arrears

Identified

as having a

higher

ability to

pay

If all 36% of

customers cleared

their rent arrears

this would reduce

arrears by £326k

This represents

a reduction of

approximately

1/3rd of total

arrears

EXTRACT : Rent Arrears


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DPS audit results example

Number of accounts %

New Address 1499 33%

Living As Stated 972 22%

No New Data 950 21%

Deceased 9 0%

Other 1049 23%

Grand Total 4479

Deceased Flag

Number of accounts %

0 4470 100%

1 9 0%

Grand Total 4479

Public Data

CCJ Bankrupt IVA

No 48 347 366

Yes 338 39 20

(blank) 4093 4093 4093

Grand Total 4479 4479 4479


22


Account Status

Number of Up To Date (UTD) accounts

Number of Not Up To Date (NUTD) accounts % UTD accounts % NUTD accounts

0 924 1656 21% 37%

1 800 519 18% 12%

2 552 357 12% 8%

3 383 258 9% 6%

4 264 168 6% 4%

5-10 412 361 9% 8%

11+ 27 43 1% 1%

Missing 1117 1117 25% 25%

Grand Total 4479 4479 100% 100%


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Collections Score

Likelihood to pay Number of accounts % Debt Value

0 89 2% £ 149,664

1 427 10% £ 851,104

2 336 8% £ 725,839

3 489 11% £ 1,056,912

4 516 12% £ 704,109

5 435 10% £ 1,108,160

6 376 8% £ 769,168

7 291 6% £ 612,691

8 258 6% £ 677,432

9 145 3% £ 320,209

Missing 1117 25% £ 1,528,100

Grand Total 4479 £ 8,503,387




Fraud Services


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• Eligibility and ID checks – streamlined, faster, more accurate, real time, all channels

• Social Housing Tenancy Verification (SHTV) – Harrow, Hillingdon, LBHF, Eastend Homes, L&Q, Enfield......

• Single Person Discount Fraud – 150 sites

• Procurement (internal) fraud

• General Fraud

ID and Fraud Services


26

Social Housing Typical Results


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What is the ‘Tenancy Verification Service’?

Data returned:

• Tenancy residency dates

• Tenancy residency score

• Tenant alias names

• Latest traced address

• Confirmation of known cohabiters

• Up to 5 undeclared potential residents (names and dates of birth withheld for DPA reasons)

• Scores associated with residency and their associations with the tenant

Identify tenancies to be checked

Send input file to

Experian

Experian identifies potential

fraudulent tenancies

Experian produces Summary

Report

Client conducts

investigations based on

prioritisation


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Awarded Specified Anti-Fraud Organisation status

Why Experian

• Pioneering work in the Public and Private sectors

• Exceptional track record in safely and securely handling billions of

consumer records worldwide

• Thorough review of Information Security (IS)

• Anti-fraud systems are used by the worlds leading financial

institutions

• All staff have to sit and pass yearly DPA and IS assessments

Award has been given by the Home Office under section 68 of the Serious

Crime Act 2007

We are able to share public sector data in

public-public or public- private sharing schemes in

order to detect and prevent fraud

The only private

company

to be awarded SAFO status


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Summary

• It has never been more necessary to “know” tenants – both in terms of identifying and helping those who need such help

• Welfare Reform will not affect all tenants, equally

• Insight – explains differences in the tenant base

• Collections – informs rental and arrears efforts

• Fraud identifies sub-letters AND those not sub-letting

• Any pain and risk can be mitigated by knowing your customers and acting now in an informed way

• This is an opportunity to do things differently

• Please consider Rental Exchange – financial inclusion for tenants and Housing Association benefits.


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