61% of Australian credit risk leaders acknowledge poor lending decisions could put customers into financial hardship – highest of APAC nations surveyed Less than half of Australian credit providers are maximising the wealth of data available 70% of lenders identify modernising legacy systems as a top credit risk priority AUSTRALIA, 28 OCTOBER 2021: Global information services company Experian has released its inaugural Risk Radar report, examining key priorities and concerns of Australia’s most senior risk leaders across the lending market. The industry-first report shows lenders are taking a cautious credit risk approach while they invest in more technology to better analyse data and assess applications accurately, which in the meantime could limit would-be creditworthy borrowers’ ability to access the level of credit wanted without placing themselves in financial stress.   COVID-19 impacts on loan deferrals, rising house prices as well as proposed changes to Responsible Lending regulations are the key macro trends influencing risk leaders’ conservative strategies. This comes as almost two thirds of the report’s Australian respondents acknowledged poor lending decisions could put their customers into financial hardship, while 78 per cent said improving regulatory compliance was a top priority.   Experian’s General Manager of Decision Analytics A/NZ, Mathew Demetriou, said: “Lenders are having to stay ahead of, and respond to, a changing regulatory landscape. For instance, the government announced earlier in the year the potential to wind-back some of the more onerous lending regulations, while more recently, the RBA signalled a tightening of mortgage lending criteria to cool the property market.   “Lenders may find themselves caught between a rock and a hard place. Lenders want to do all they can to help borrowers achieve their financial goals and avoid facing hardship or defaulting on loans. However, they must also balance this with the need to remain competitive,” said Mr Demetriou.   MoneyPlace’s Chief Risk Officer, Paul Abbey, said: “There are ongoing macroeconomic factors and implications of vast areas of the country having been through lockdowns. While 2020 was much more resilient and upbeat than most people expected, some of those tailwinds remain, but headwinds are gathering strength.”   Harnessing technology to remain competitive   The report identified the challenge of balancing speed, accuracy and compliance, with lenders losing market share if they are too slow with approvals, particularly as nimble fintech entrants compete with rapid customer acquisition and onboarding experiences. Experian research conducted earlier this year highlighted that half of Australian consumers expect a home loan approval within 24 hours, and 75 per cent expect approval within 3 days.   “The key challenge for traditional lenders is to remain competitive through fast approval and onboarding processes, while still meeting regulatory obligations,” Mr Demetriou said.   The Risk Radar report found lenders are acutely aware of the role technology must play in overcoming this challenge as 7 in 10 risk leaders identified modernising legacy systems as a top credit risk priority, while almost two thirds felt the same about leveraging new data sources.   However, awareness didn’t necessarily translate into investment, with less than half of Australian risk leaders thinking that their business was accessing all of the data sources available to them.   “There is a vast array of consumer data that is now available to modern lenders beyond traditional banking, credit bureau and employment information. This includes digital transaction, BNPL and subscription data, amongst others. Therefore, we are seeing growing demand for systems that can help lenders to analyse this information to make informed, actionable decisions.   “Decisioning technology that applies automation, data and analytics at the point of customer acquisition, can not only improve the speed of approval for a better customer experience, but also ensures responsible lending obligations are met. This helps to reduce the risk of defaults and likelihood of hardship down the track   “Sophisticated credit risk models using new technology can ultimately help improve customer management, reduce credit losses and minimise fraud,” said Mr Demetriou.   -END-   About Experian   Experian is the world’s leading global information services company. During life’s big moments – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organisations to prevent identity fraud and crime.   We have 17,800 people operating across 44 countries and every day we’re investing in new technologies, talented people and innovation to help all our clients maximise every opportunity. We are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index. Learn more at experianplc.com or visit our global content hub at our global news blog for the latest news and insights from the Group.

May 27, 2021: Experian have today announced a new partnership with Microsoft which will help organisations globally make more informed, intelligent decisions with their data and deliver better outcomes for their customers.   The partnership will support more organisations looking to improve the quality of their data, allowing them to use it more effectively and turn it into actionable insight.   Organisations now have quick, efficient, and easy access to a range of Experian data solutions through Microsoft’s AppSource and Azure Marketplace – the online application provides a tailored catalogue of certified, cloud-based business solutions.   The development comes at a time when the importance of cloud hosted solutions has been further emphasised by the Covid-19 pandemic and the acceleration of digital transformation projects.   Business users globally can access Experian’s Aperture Data Studio as well as real-time address, email and phone validation APIs through Microsoft Azure and Microsoft AppSource marketplaces.   The availability of Aperture Data Studio in Azure Marketplace allows new and existing Microsoft Azure clients to access the product under a BYOL (bring your own license) model. Whilst Experian’s real-time validation APIs can be seamlessly integrated into Microsoft’s suite of business applications to help customers better manage the customer contact data entering their organisations.   Financial service providers in the UK will also be able to take advantage of the latest innovations in open data, which can help their customers successfully manage their money. This is available through Microsoft Azure.    Experian’s Open Data Platform underpins more than 180 million API requests a month and is currently being used by over 200 organisations. The technology has allowed credit card and auto finance providers, rental property agencies, mortgage lenders and gaming companies to better assess whether services are affordable for their customers.   Andrew Abraham, Managing Director of Experian’s Global Data Quality division, said: “Having accurate, complete, valid and well managed data is essential for businesses to deliver better outcomes for their customers. The publication of Experian’s suite of products provides access to the solutions that can really help them achieve this and unlock the many opportunities that data can bring.”   Jake Zaborowski, General Manager, Microsoft Azure Platform at Microsoft Corp. said, “We’re pleased to welcome Experian to the Microsoft Azure Marketplace, which gives our partners great exposure to cloud customers around the globe. Azure Marketplace offers world-class quality experiences from global trusted partners with solutions tested to work seamlessly with Azure.”   The marketplaces are the go-to for Microsoft customers worldwide to discover, evaluate, and request further information about certified solutions. Experian’s presence on these platforms ensures that the company’s data solutions fit seamlessly into Microsoft’s ecosystem of business applications and further strengthens their status as a Microsoft Gold Partner.   -ENDS- Media contact: Joe Green, PR Manager, Corporate & Business, UK&I, Experian Tel: 07812 737 768 / Email: joseph.green@experian.com Brands2Life for Experian experian@brands2life.com   About Experian Experian is the world’s leading global information services company. During life’s big moments – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organisations to prevent identity fraud and crime.   We have 17,800 people operating across 44 countries and every day we’re investing in new technologies, talented people, and innovation to help all our clients maximise every opportunity. We are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.   Learn more at www.experianplc.com or visit our global content hub at our global news blog for the latest news and insights from the Group.