TransUnion Stock Price, News & Analysis

TransUnion released its Financial Services Monthly Industry Snapshot Report on January 26, 2021, noting that 2.87% of accounts in auto, credit card, mortgage, and personal loan sectors remained in financial hardship as of December 2020. This marks a decline from a peak of 4.77% in May 2020, though the rate of decline has slowed recently. The company introduced the CreditVision® Acute Relief Suite, aiming to aid lenders in effectively managing consumer accounts and adapting to changing repayment preferences, highlighting the need for lenders to better understand their customers' situations.

TransUnion (NYSE: TRU) plans to announce its fourth quarter financial results for the period ending December 31, 2020, on February 16, 2021, at 6:00 a.m. CT. A conference call will follow at 8:30 a.m. CT, where executives will discuss the financial outcomes. Interested parties can access the press release and live webcast via the TransUnion Investor Relations website.

TransUnion, a global information provider operating in over 30 countries, emphasizes its mission of delivering Information for Good® to facilitate trust and economic opportunity.

TransUnion outlines critical trends affecting the insurance sector for 2021, emphasizing the continued impact of COVID-19 on consumer behaviors and insurance operations. Key findings from a survey of over 3,100 U.S. consumers highlight that 72% of drivers are using their vehicles less. Insurers must adapt to evolving needs, leaning into digitization and usage-based insurance models. The report predicts ongoing financial challenges and an increase in disaster-related claims due to extreme weather. Understanding individual customer needs will be crucial for insurers in the upcoming year.

TransUnion and Aite Group released a report indicating that collections balances fell by over $8 billion from 2019 to mid-2020 due to COVID-19 impacts. However, third-party collections activity is expected to increase in 2021. The report also highlighted a 15% reduction in the number of third-party collection firms from 2016 to 2020, with profit margins improving as 68% of collectors report receiving payments in full. Modernization in communication methods, including increased use of texting, is anticipated, driven by new guidelines from the CFPB.

TransUnion Healthcare has formed a partnership with Socially Determined to enhance healthcare outcomes by analyzing Social Determinants of Health (SDOH). This collaboration will apply SDOH analytics and clinical data to help healthcare organizations better understand social risks impacting communities. The use of the SocialScape platform will lead to targeted interventions, improving overall care and reducing costs. The partnership arises amidst the heightened health and economic challenges due to COVID-19, where over half of consumers reported financial impact from the pandemic.

TransUnion's 2021 consumer credit forecast anticipates a rebound in credit card and personal loan originations in the first half of the year, with Q2 expected to show significant growth. Auto loans will increasingly target lower-risk consumers, while macroeconomic factors like job growth and GDP improvements will bolster the credit market. Despite some continuing hardship in mortgage forbearance rates, overall consumer delinquency remains low. The report predicts a return to pre-COVID levels of origination activity across various credit products, with a notable focus on healthier lending practices.

TransUnion has partnered with The Floow to enhance telematics insights for insurers, aiming to improve pricing sophistication and customer experience. This collaboration introduces solutions like FloowDrive, FloowFleet, FloowKit, and FloowScore, which provide real-time driver behavior data. The partnership is designed to help insurers mitigate risks and adapt to market changes more effectively. The Floow's technology, which is device-agnostic, allows for seamless integration, helping insurers better assess risks and price policies compared to traditional models.

TransUnion has reported a 14% increase in the rate of suspected holiday e-commerce fraud compared to all of 2020, mirroring consumer concerns reflected in a survey where 50% of respondents were worried about fraud. Despite a 1% decline in fraud rates from 2019, the current rates are 59% higher than in 2018. The analysis highlights Cyber Monday as the peak day for suspected fraud transactions at 26.03%. Furthermore, mobile devices were used for 58% of online transactions, down from 62%% in 2019. The findings underline the increasing challenges for e-commerce in ensuring transaction security.