Experian 2012 Annual Report Download - page 14

12 Experian Annual Report 2012 Business overview
Decision Analytics unlocks the value
of Experian’s vast databases of credit
and marketing information, as well as
clients’ data, applying expert consulting,
analytical tools, software and systems, to
help clients solve complex problems and
make valuable business decisions.
Description
Experian enables 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 has developed a comprehensive
consultative-led approach for its clients,
helping them identify issues, develop
insights and to focus on solutions that
add value to their business. Hundreds of
statisticians, mathematicians and analysts
are employed globally creating both
bespoke and industry solutions.
Solutions developed by Experian include
application processing, customer
management, fraud solutions and collections
software and systems.
•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.
•Customer management systems are used
to automate huge volumes of day-to-day
decisions; helping clients make the right
decision for each customer, in a consistent
and cost-efficient manner.
•Fraud and identity solutions are used to
authenticate that people are who they say
they are and that the information being
provided is correct.
•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
Clients vary in size, from small to medium,
to multinational. They come from a range
of industries, including financial services,
telecommunications, utilities, retailers,
insurance, automotive and the public sector.
Multinational clients often standardise
their operations globally 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.
Competitive environment
Experian is a market leading provider
of Decision Analytics in all its major
geographies. Global competitors include
Fair Isaac and SAS, and competition in
individual markets consists typically of
smaller, local players.
Market influences for Credit
Services and Decision Analytics
There is a growing demand from
governments, regulators and lenders for
greater transparency. Governments want
safety and soundness in the banking system,
regulators want greater insight and control
over the entities they are regulating and
lenders want to grow whilst being more
discerning about their customer acquisition.
Clients in newer customer segments, such
as telecommunications and utilities, are
becoming increasingly aware of the benefits
of managing customer relationships,
optimising collections and combating fraud.
These are all driving a need for more data,
more segmentation, more consultancy and
more execution support.
Our four global business lines
Decision Analytics
11%
Contribution to Group revenue