Experian 2016 Annual Report Download - page 56

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Corporate responsibility continued
Encouraging the use of alternative data is
an essential part of our business strategy.
Experian is a member of the Policy and
Economic Research Council (‘PERC’)
alternative data initiative, a public-
private partnership that aims to increase
financial inclusion around the world by
using innovative information solutions.
We also engage with policymakers to
develop regulations that promote the
use of positive data in credit bureaux.
In the UK, one in eight of our UK credit
reports already includes utility data,
helping people strengthen their credit
reports and get quick and easy access to
competitive credit deals, widening access
to everyday services. By adding on-time
utility payments to US credit reports
over the past two years, we have seen a
significant improvement in credit ratings
for those people where this information
has been included. Where utility data
was added, in these cases it halved the
number of people with low credit scores,
who typically get fewer credit offers and
higher interest rates on loans.
Through our RentBureau in the USA
and Rental Exchange in the UK, we have
added data on millions of social and
private housing tenants, to help improve
their credit scores. In the USA, by adding
the rental data we had to those files,
the number of people with poor credit
ratings fell by nearly 20%.
Opening doors
We are investing in innovative products
that can open doors for many people and
change their lives for the better.
Having a financial identity is vital to
unlock fair and affordable access to
essential services, but in some countries
a lack of public records makes it even
harder for people to prove who they are
and show any record of financial history.
We are piloting a new product, E-Link,
that will help people in India build up a
credit profile from the payments they
make through self-help groups. E-Link
aims to use the information on lending
and repayments within these groups to
enable individual members to build up a
financial identity and profile that can be
included in mainstream credit bureaux.
Working with partners around the
world, we support financial education
programmes and Experian experts
volunteer their time and skills to equip
people with the knowledge they need to
understand and manage their finances.
Our experts have helped over 15,000
people through our Real Dreams
programme in Brazil and we are
supporting the Brazilian Government’s
strategy for financial education in
elementary schools through a pilot
programme that will be delivered to all
public schools across the country.
In the UK and Ireland, we have also
developed online and practical resources
to support financial education for young
people. A series of interactive storybooks
and supporting materials for teachers
help schoolchildren aged five to eleven
explore the practical and emotional
aspects of money, through our Values,
Money and Me free online financial
education resource.
Financial education is integral to helping
people avoid unmanageable debt, but
if they do get into debt we offer advice
and support to help them get their lives
back on track. Over 5.9 million people
and small businesses in Brazil are now
enrolled on our Recovery Portal. This
online service brings people and lenders
together to discuss and renegotiate
debts face-to-face. Through the portal
over 1.9 million individual debts have
been repaid, collectively worth over
US$2.5 billion.
Credit Educator in practice –
feedback from a customer in
the USA
“I haven’t always known how important it is to have and maintain a healthy credit
profile, and when I found out later in life it was too late. Over the years, I have done
my own research and have learned that I had to get myself together and figure out
a way to repair the damage I had done to my creditworthiness. I wasn’t sure how
I was going to start the process and what resources were available to help me get
started. With your guidance and introduction to a Credit Educator, I finally
found hope!
I had bought a car out of necessity but I still didn’t quite know the status of
my credit affairs. My next step was to purchase a home for myself and my
family. Speaking with a Credit Educator about personal credit needs and plans
reaffirmed and motivated me to remain conscious about the importance of credit
responsibility. Without the understanding that I only had to request accounts to be
updated or removed from my record, I would not have been able to buy a home.
By removing several negative accounts from my report, I have dramatically
improved my credit score and have bought my first home!”
J. Aikens Credit Educator customer in the USA
Strategic report •Corporate responsibility