Experian 2011 Annual Report Download - page 9

Download and view the complete annual report

Please find page 9 of the 2011 Experian annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 164

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164

Introduction Business and market overview xx
7
Market influences
Credit Services and
Decision Analytics
Decision Analytics unlocks the value
of Experian’s vast databases of credit
and marketing information, as well
as clients’ data, by applying scoring,
expert consulting, analytical tools and
software to convert data into valuable
business decisions for organisations.
Description
Experian enables lending organisations
to make accurate and relevant
decisions at every stage of the
customer relationship; helping to
identify potentially profitable new
customers, to segment their existing
customers according to risk and
opportunity, to manage loan portfolios
and to undertake effective collections
actions. Decision Analytics products
are also used in the detection and
prevention of fraud.
Experian employs over one thousand
statisticians, mathematicians and
analysts globally creating both bespoke
and industry solutions. Experian builds
application processing, customer
management, fraud solutions and
collections software and systems.
l Application processing systems
enable organisations to balance
the requirement for speed and
competitiveness with the need
for careful risk assessment when
considering an applicant for credit.
l Customer management systems are
used to automate huge volumes of
day-to-day decisions. It’s about making
the right decision for each customer, in
a consistent and cost-efficient manner.
l Fraud solutions are used to
authenticate that people are who they
say they are and that the information
being provided is correct.
l Collections analytics and software
play an important part in helping
organisations establish an accurate
picture of a customer’s propensity to
pay, and therefore the amount likely to
be recovered.
Clients
Multinational clients often standardise
their lending operations on Experian’s
tools and software, helping to improve
strategic control and operating
effectiveness as well as helping to
satisfy regulatory obligations.
Financial characteristics
Credit scores and fraud checks are
sold on a transactional volume-
tiered basis, whilst revenue from
software and systems consists partly
of implementation fees and partly of
contractually recurring licence fees.
Experian is a market leading provider
of Decision Analytics in all its major
geographies excluding the US, where
Fair Isaac Corporation is the market
leader. Competition in individual
markets comes from smaller, local
players.
Competitive environment
Decision Analytics
The addressable market for Experian’s
data and analytics is expanding in
emerging markets and new customer
segments. There is greater demand
for risk management, fraud prevention
and customer segmentation tools.
Globally, adoption of best practices
for risk management creates new
opportunities, as is evident today
in India and Brazil.
Business model
Decision
Analytics Contribution to
Group revenue
10%