TransUnion’s Financial Inclusion Forum Brings Together Industry Executives to Discuss Ways to Better Serve Marginalized Consumer Segments
Over 60 million U.S. adults face challenges in accessing credit, highlighted at TransUnion's inaugural Financial Inclusion Forum in April 2023. This event gathered leaders from financial and insurance industries to discuss solutions for underserved consumers. Steve Chaouki emphasized that financial inclusion is pivotal for economic growth, and innovative strategies are needed to engage traditionally unscorable individuals. A recent study revealed that 5.85 million consumers opened their first credit product in 2022, with 61% being Gen Z. Utilizing alternative data sources can help lenders evaluate risks and improve loan access, with significant successes reported in scoring applicants previously deemed unscoreable.
- TransUnion emphasized the importance of financial inclusion for economic growth.
- The Financial Inclusion Forum fostered strategies to engage underserved consumers.
- 5.85 million new-to-credit consumers emerged in 2022, indicating market expansion.
- Successful partnerships, like with Pagaya, demonstrated effective use of data for extending credit.
- None.
60+ million U.S. adults either outside the credit ecosystem or lack sufficient credit data to be scored by traditional risk models
CHICAGO, April 05, 2023 (GLOBE NEWSWIRE) -- One in five U.S. adults – more than 60 million consumers – are either outside the credit ecosystem or lack sufficient credit data to be scored by traditional risk models, leaving many underserved. To better support marginalized consumer segments, TransUnion (NYSE: TRU) brought together senior leaders in the financial services and insurance industries at its inaugural Financial Inclusion Forum.
The group of executives discussed ways to meet and engage consumers where they are on their financial journey and to create and deliver equitable products and services for them, opening new sources of business growth while building long-term resiliency and prosperity for underserved families.
“Financial inclusion is core to TransUnion’s mission of Information for Good because we believe all consumers should have the opportunity to participate in the credit ecosystem. Economic growth is strongest when participation is at its highest,” said Steve Chaouki, President, U.S. Markets and Consumer Interactive, TransUnion. “To make meaningful change, we convened leaders from the financial services and insurance industries – two of the largest and most important groups to the financial futures of consumers and the economy. Developing strategies that unite financial inclusion opportunities with responsible lending and policy underwriting will help marginalized consumers and allow these businesses to grow.”
Empower, Engage and Evaluate
The Financial Inclusion Forum included several executive roundtable conversations focusing on how to empower and engage more consumers who traditionally do not have access to credit or insurance as well as how to use more inclusive ways to evaluate their risk.
Topics focused on:
- Building consumers’ confidence through authentic education and connections
- Fostering greater participation with tailored consumer experiences
- Embracing innovation to unleash greater fairness, inclusion and sustainable growth
- Exploring what financial inclusion means for the insurance industry
- Using nontraditional data to expand credit access and fully assess risk
As well, the Forum included a fireside chat that showcased how a partnership between TransUnion and Pagaya used predictive datasets and artificial intelligence to extend credit to more consumers. Pagaya is a global technology company that has built an intelligent decision-making network that empowers financial institutions to deliver financial products and services to more people.
“We were honored to join TransUnion’s Financial Inclusion Forum to share how the use of data can make a meaningful impact, ensuring more consumers get access to the financial products and services they need to meet their future goals,” said Leslie Gillin, Chief Growth Officer, Pagaya. “Pagaya works with partners like TransUnion to help some of the largest banks, fintechs and auto finance lenders enhance their underwriting decision platforms with our credit intelligence network to bring more consumers into the mainstream economy.”
Financial Inclusion a Balancing Act
One of the key tenets of the Financial Inclusion Forum was that not all consumers follow a traditional credit path and that businesses need to leverage new data sources, particularly when considering first-time credit offerings to previously unscorable customers, who despite a lack of credit data, may ultimately prove worth the risk.
A recent TransUnion study found that, in 2022, 5.85 million consumers opened their first credit product and became new-to-credit (NTC). While Gen Z made up the largest part of this group at
“A delicate balance exists for organizations to support consumers while still managing risk within their portfolios,” said Hilary Chidi, EVP, Global Credit Risk Solutions and Chief Sustainability Officer at TransUnion. “Superior insights lead to better decision-making for lenders, and, in turn, the right opportunities for consumers. In these challenging times of stubbornly high inflation and rising interest rates, it is even more important to have a holistic view of a consumer’s financial position.”
To get a more complete picture, lenders are leveraging solutions such as TruVision Blended data, which includes an array of trended data and alternative data assets. Recently, a mid-sized lender complemented its use of VantageScore credit risk scores by incorporating TruVision Blended data.
As a result of utilizing both TruVision Blended data and VantageScore credit risk scores, the lender was able to accurately score more than
For more information about TransUnion’s financial inclusion initiatives, please click here. Visit TransUnion’s New-to-Credit study landing page for additional insights.
About TransUnion (NYSE:TRU)
TransUnion is a global information and insights company with over 12,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with more confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.
http://www.transunion.com/business
Contact David Blumberg
TransUnion
E-mail david.blumberg@transunion.com
Telephone 312-972-6646
FAQ
What was discussed at TransUnion's Financial Inclusion Forum in April 2023?
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Which demographic made up the largest portion of new-to-credit consumers in 2022?
