EXPERIAN PLC S/ADR - EXPGY STOCK NEWS

Experian has become an authorized report supplier for Fannie Mae's Desktop Underwriter validation service, enhancing its income and employment verification offerings. This partnership supports Day 1 Certainty from Fannie Mae, allowing lenders to quickly validate borrower income and employment, streamlining the mortgage process. Through Experian Verify, lenders can access millions of verified records, reducing underwriting time and costs. The integration aims to improve the homebuying experience, benefiting both lenders and consumers.

Experian's Q1 2022 Automotive Finance Report highlights rising vehicle loan amounts and payments amid ongoing inventory shortages. Credit unions increased market share to 22.06% from 18.55% year-over-year, while captive financing dropped to 25.38%. Average new vehicle loans surged 12% to $39,540 and used vehicle loans rose 25% to $27,945. Monthly payments also increased, with new vehicles averaging $648 and used $503. Despite these trends, average interest rates saw slight declines, indicating a complex market influenced by supply shortages.

Auto Loan Default Rate Hits Highest Since December 2020

According to data released by S&P Dow Jones Indices and Experian for April 2022, the composite credit default rate rose to 0.50%, marking a two basis point increase. The auto loan default rate also saw a rise, reaching 0.58%, up two basis points. The bank card default rate surged to 2.52%, a 25 basis point increase. Notably, Miami reported the highest regional default rate at 0.80%. This marks the fifth consecutive month of increase in the composite rate, indicating potential concerns about consumer credit health.

Experian has released a study revealing that financial inclusion is a major focus for banks, with 60% believing expanded data can improve credit access. The study shows that 25% of banks have implemented financial inclusion plans, while 67% are in progress. It highlights the importance of data, with 62% of lenders planning to use alternative data for better credit decisions. Most programs target new credit users (46%) and low-income consumers (41%). Challenges include technology and internal education gaps.

Experian Boost has positively impacted nearly 9 million consumers, enhancing their financial profiles by letting them include timely utility and telecom payments in their credit history. This innovative service was recognized in Fast Company’s 2022 World Changing Ideas Awards for its potential to bring about significant change in financial inclusion. Additionally, Experian aims to further assist underserved communities with initiatives like Experian Go, targeting 50 million individuals with limited credit histories. The company emphasizes its commitment to innovation and social good.

The latest Experian Global Insights Report reveals that online spending continues to thrive post-lockdown, with 62% of consumers using mobile wallets. A significant 81% believe a positive digital experience enhances brand perception. Moreover, 53% report increased spending on digital platforms in recent months. Concerns about online security have risen, with 52% worried about transaction safety. The report highlights the growing popularity of payment methods like Buy Now Pay Later (BNPL), which 60% of U.S. consumers use for financial inclusion. The study surveyed 6,000 consumers across 20 countries.

S&P Dow Jones Indices and Experian reported that consumer credit defaults have risen through March 2022. The composite rate increased two basis points to 0.48%. The bank card default rate saw a significant rise of 12 basis points to 2.27%, while the auto loan default rate increased to 0.56% and the first mortgage rate reached 0.35%. Most major metropolitan areas recorded higher default rates, with New York experiencing the largest increase at 0.80%.

Experian announced the integration of its PowerCurve® and CrossCore™ platforms into Black Opal’s credit decisioning process. This partnership aims to help U.S. immigrants access credit, enabling real-time credit offers while mitigating fraud risks. Experian's tools will support Black Opal's mission to improve financial inclusion for expatriates and newcomers, allowing them to build credit histories in the U.S. Black Opal, founded in Australia, also provides financial services globally, focusing on essential products for immigrants.