Experian 2011 Annual Report Download - page 11

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Introduction Business and market overview xx
9
Interactive provides credit monitoring
and other information services
directly to millions of consumers via
the internet. It enables consumers to
monitor the accuracy of their credit
report, to check their credit score and
to protect against identity theft.
Price comparison services help
consumers to make more informed
decisions when purchasing products
and services online.
Consumer Direct
Experian provides consumers with
secure, online, unlimited access to their
complete credit history in return for a
regular monthly subscription fee.
In the US, access is via the websites
freecreditscore.com and
CreditReport.com, and in the UK via
CreditExpert.co.uk. The service allows
consumers to see the same information
that lenders use when deciding to offer
a loan or credit card and may include a
current credit score.
Typically a consumer will subscribe
to Experian when they have a major life
event, such as when obtaining a loan,
and they want to feel more confident
about their situation by looking at their
credit report and score. Or when there
is a life change, such as getting married
or moving city and they need to take a
more in-depth look at their financial
situation through their credit report.
Email or text alerts keep consumers
informed about any significant changes
to their credit report. Subscribers also
receive information that helps them
manage their credit commitments.
Experian’s identity protection service
in the US and the UK, ProtectMyID,
provides identity theft detection,
protection and fraud resolution to
consumers. This includes internet
scanning of subscribers’ debit or credit
card numbers and the monitoring
of address change notifications. In
the event of fraud, Experian provides
access to a dedicated fraud resolution
service together with insurance against
financial loss.
Lead generation and PriceGrabber
Experian is a trusted intermediary on
the internet, helping consumers to find
the most appropriate financial services
provider, or online education provider,
together with the best deal on millions
of consumer products.
LowerMyBills.com connects
consumers looking for a home
loan, credit card or insurance with
companies best suited to their needs.
ClassesUSA.com provides
professional adults with access to
online educational opportunities, with
more than five million people visiting its
website each month.
PriceGrabber.com in the US and
PriceGrabber.co.uk in the UK is a
leader in online comparison shopping,
providing consumers with unbiased
information on products, services and
merchants to help them make the right
choice. It has 25 million active users
worldwide.
Financial characteristics
Consumer credit reports, scores and
identity protection are provided to
consumers for a monthly subscription
fee, whilst revenue for lead generation
is generated on a per lead or referral
provided to businesses.
Experian’s direct-to-consumer, credit
information business is the clear
market leader in both the US and UK.
In the US, competition is provided by
Equifax, TransUnion, Fair Isaac and
other smaller specialists, but Experian
is more than four times the size of
any of those competitors. In the UK,
competition is provided by Equifax and
smaller niche players.
Competitive environment
Interactive
Market influences
Interactive
Consumers are becoming increasingly
aware of the need to control and
manage their financial circumstances.
They are more conscious of how
personal information and credit
history is employed by lenders, and
are more focused on managing their
credit relationships. Consumers
also want to minimise the risk of
identity theft.
Business model
Interactive
Contribution to
Group revenue
28%