Experian 2011 Annual Report Download - page 14

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Experian Annual Report 2011
12
Experian is investing in a range of initiatives designed to protect and grow the
business in a protable and value-accreting way.
Expanding geographically
Experian continues to take its capabilities
into new geographies.
The new credit bureau development in
India is well underway. All banks that
have been approached have indicated
a willingness to become members of
the bureau and to share their data.
Experian’s competitive database will use
superior matching technology and be
supported by a range of complementary
products, including tools for preventing
fraud at the point of application.
In Brazil, regulatory changes have
created the opportunity to provide
clients with positive consumer payment
information and to signicantly expand
Experian’s product offering. Positive
data has been shown to lower the risk
of new customer acquisition, help
reduce application fraud and facilitate
increased automation of decision
making. Experian already holds
positive data on 70 million consumers
in Brazil and will continue to expand
this database, with the expectation of
nancial benets starting to accrue in
18 to 24 months.
Another key initiative has been the
continuing roll-out of Marketing
Services products globally, including
consumer insight and online
competitive intelligence products into
Brazil, France and India.
A total of 29% of Experian’s global
revenue is now from outside North
America and the UK and this is
expected to increase to 30 to 40% by
2014. This diversication is one of the
Group’s key performance indicators.
New customer segments
Experian continues to extend its
capabilities beyond the traditional
areas of nancial services and
retail. It has successfully expanded
into the small and medium
enterprise (SME) sector, healthcare
payments, insurance, public sector,
telecommunications and utilities.
Experian invests in industry-specic
sales teams that understand the
unique requirements of the segment. It
then adapts core products to meet the
specic needs of the new customer.
Many of Experian’s products can be
tailored and repurposed in this way.
In Brazil, for example, Experian is
creating demand for credit reference
products in the large and rapidly
growing SME segment. It has raised
awareness of the value of good
credit risk management in acquiring
protable new customers, reducing
delinquency rates and preventing
fraud. As a result, Experian’s SME
business in Brazil has expanded
rapidly and there are opportunities
for replicating this success in other
regions.
In the UK, Experian is well established
in the public sector and is now
replicating the model in the US,
building a specialist sales team to
focus on federal and state government.
This year, 67% of global revenue
came from outside nancial services,
consistent with Experian’s aim to
generate more than 65% of revenue
from new segments. This is one of the
Group’s key performance indicators.
Product innovation is integral to
Experian’s strategy, helping the Group to
sustain and grow client relationships and
to realise new business opportunities.
Key to this is the continuing investment
in new predictive data, which this year
included rental payment history in the
US, and current account and payday
loan data in the UK. Such data sources
help Experian to provide clients with a
more complete view of their customers
throughout economic cycles, enabling
them to assess lending risk more
accurately.
Experian has also been rolling out the
next generation of technology platforms:
- The new global credit bureau
platform enables Experian to bring
the sophistication of the US, UK and
Brazilian credit bureaux into new
markets more quickly and at lower cost.
It is also being used for the upgrading
of legacy platforms.
- The new suite of Decision Analytics
software provides clients with a wide
range of modular-style products that
are both scalable and easily deployable
into new markets. They enable clients
to standardise on Experian software
quickly and cost-efciently.
- At Marketing Services, Experian is
enhancing and upgrading its email
marketing and contact management
platforms to provide clients with
improved features and functionality.
In the US, Consumer Direct continues
to refresh its product brands to meet the
evolving needs of consumers:
- Freecreditscore.com is an entry point
for consumers wanting friendly, easy
access to their credit scores.
- The recently acquired CreditReport.
com brand provides consumers with
comprehensive information on their
credit history.
- ProtectMyID.com helps bring peace
of mind with its focus on identity
protection and insurance.
Consumer Direct is also making its
products more accessible with the rst
ever mobile phone application for credit
scores and identity theft alerts.
Overall, more than 10% of Experian’s
global revenue comes from new
products developed in the past ve years
and the Group invests to maintain this
rate of innovation.
Product innovation
20
20