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How Big Data Can Lead to Bigger ROI
The document discusses Experian's Ascend Analytical Sandbox, an innovative big data analytical solution offering immediate access to secure, archived credit data and advanced analytics tools. It highlights industry trends, regulatory challenges, and consumer behavior insights while demonstrating how the sandbox can enhance client decision-making and marketing strategies through data analysis. Case studies and applications illustrate the sandbox's potential to identify market opportunities and improve customer engagement.
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How Big Data Can Lead to Bigger ROI
- 1. 1 © ExperianPublic How Big Data Can Lead to Bigger ROI with the Ascend Analytical Sandbox
- 2. 2 © ExperianPublic Agenda I. Introductions II. Industry Trends III. What is Sandbox IV. Demo V. Client Experience
- 3. 3 © ExperianPublic Introductions Reshma Peck Senior Vice President, Experian Wayne Glinski Product Manager, Experian Ryland Ely Modeler, OneMain Financial
- 4. 4 © ExperianPublic The Pace of Change is Increasing Cost and Complexity at Astonishing Rates Digital World 52% of smartphone owners are conducting banking on mobile devices Big Data More than 90% of data in the world has been generated in just the past five years Consumer Demands 36% of customers are interacting with a single business using five or more channels Data Security Synthetic identity fraud accounts for approximately 20% of credit charge-offs and 80% of credit card fraud losses Regulations A large bank estimated their cost of regulatory programs and compliance will reach nearly $3.3 billion in 2017 Efficiency 89% of consumers say they have stopped doing business with a company after a single poor customer experience
- 5. 5 © ExperianPublic Experian’s Approach to Innovation Modern Technology Stack Agile Development Process Innovation Framework
- 6. 6 © ExperianPublic What is it? Big data analytical solution with immediate access to archived credit data in a securely hosted, user-friendly environment: • Monthly snapshots • Familiar analytics tools (SAS, R Studio, Hue, Tableau) • FCRA non-regulated data • Scalable Hadoop cluster processing • Additional Capabilities on the near-term roadmap (Python) What makes it different? • True historical 100% national full file or 10% national file options - Includes opt-outs - Includes trade line data - Includes access to Experian scores and attributes • 17+ years of monthly history! • Client customer and trade keys for sample • Anonymization service for linking data • Low entry price and scalable for growth • Business Data and Household Share of Garage What is the Experian Analytical Sandbox?
- 7. 7 © ExperianPublic Citrix Desktop CLIENT SIDE Data Assets: Trade Data Inquiry Data Collections Data Public Records Scores Experian Attributes Loaded Client Data Citrix Gateway (www.easandbox.com) Hadoop Cluster: Architectural Overview EXPERIAN ENVIRONMENT • 33 Nodes • 490TB storage • 640 compute cores • 3.75TB memory
- 8. 8 © ExperianPublic Analytical Sandbox Case studies & Demo
- 9.
- 10. 10 © ExperianPublic Bureau-based inferencing Data availability – cross lifecycle use cases Non-responders go? Approved not booked go? Declined customers go? Attritors go? Where did my…
- 11. 11 © ExperianPublic Rejects Opt-Outs Potential Score Expansion Opportunity Where are our potential customers going for credit? What is the size of the opportunity? What terms are they looking for?
- 12. 12 © ExperianPublic Card Benchmarking
- 13. 13 © ExperianPublic Portfolio Snapshot Generational Make-up • See what generational age groups comprise the largest part of your portfolio Geographical Make-up • Where are your customers located? Attribute Benchmarking • How do your customers compare to your industry peers? • How are they trending comparatively? Score Distribution • Assess the credit quality of your portfolio
- 14. 14 © ExperianPublic Delinquency Snapshot Geographical • Where are your biggest issues? Trended View • Is it getting better or worse?
- 15. 15 © ExperianPublic Market Share Geographic Market Share • Understand which states are above your national average and which areas are below • Potential regional marketing opportunities Market Share Trend • Are you growing Accounts? Balances? Both? Generational Market Share • Many clients see Millennials as an emerging market – understand your generational positioning today and track marketing efforts
- 16. 16 © ExperianPublic Personal Loan Market Entry/Expansion
- 17. 17 © ExperianPublic Volume Mixes • Drill-down capability for targeted analysis Volume Distribution • Understand volume, bad rates, originations and payoff rates by Vantage score range
- 18. 18 © ExperianPublic Delinquency Threshold • Toggle between 30, 60, and 90+ rates for Collections analysis Delinquency by Segments • Generation • Vantage Range • State
- 19. 19 © ExperianPublic Zip-Code Granularity • Drill down to specific zip codes to understand where the greatest opportunities might be Zip-Code Comparison • Compare target areas to the state or US as a whole
- 20. 20 © ExperianPublic
- 21. 21 © ExperianPublic New Property Data Uses
- 22. 22 © ExperianPublic
- 23. 23 © ExperianPublic
- 24. 24 © ExperianPublic
- 25. 25 © ExperianPublic Auto “Stickiness” Scenario
- 26. 26 © ExperianPublic Tracks Auto originations over a 2 year period for consumers within a lender’s full account base to illustrate “stickiness”. Auto Loan Penetration Over Time By Vantage Range Distribution By Loan Amount Geographic drill-down Tabular Statistics for Loan Amount, Term and delinquency rate Generational Data Kind of Business Codes for “off-us” loans
- 27. 27 © ExperianPublic
- 28. 28 © ExperianPublic “Analytics” is often used to mean “reporting”, but we can build models on Sandbox too: o Marketing models: targeting, see whether direct mail customers took out loans from other lenders o Underwriting: feature exploration, trended data o Market share: segment by KOB, product type, credit score o Pricing: payment vs loan amount o Vintage curves/loss rates: how do they compare to the market? o Reject inference: explore different RI logic o How to underwrite thin files? o Test model stability over time/over different populations o Loan amount model: predict what the customer would get in the marketplace Delivering value to OneMain Financial Experian Sandbox is not just an analytics tool
- 29. 29 © ExperianPublic • Windows environment through Citrix • Move files in and out through “FTDM” interface • Most members in our group use RStudio or SAS o (In R, you can “cheat” a bit for performance with, say, RCpp or RJava) • Backend queries use Hadoop, but users need only know Hive SQL o Fast execution given the size of the data Delivering value to OneMain Financial Environment is easy to use
- 30. 30 © ExperianPublic • Data volume and speed of access • Trade-level data that goes beyond the Premier variables • 15 or so years of history with monthly payment data • Experian provided a data dictionary that does a good job describing the fields • Data is well organized o Consistent naming/format o Relatively simple schema with not too many tables Delivering value to OneMain Financial Main selling points (IMO)
- 31. 31 © ExperianPublic More info: www.experian.com/ascend
- 32. ©2018 Experian InformationSolutions, Inc. All rights reserved. Experian and the Experian marks used herein are trademarks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian public.
Editor's Notes
- #5 There is a lot of change taking place in our market. (Pick several based on prospect/client interest) Digital world – digital is the hear and now. We’re all moving to the digital channel and with that comes new data, tools and approaches to reaching new and existing customers. Understanding and keeping up is complex and time consuming which takes our focus off of what we do best…meet client needs. Consumer demands – the emergence of digital has made it easier for consumers to buy just about anything, anywhere, anytime. Convenience is king and making it easy to do business is imperative. Your competitive advantage has shifted from what’s the best rate, to how to best engage and respond to consumers quickly. This also means is the old saying, “once a customer always a customer”, is no longer valid. Customer loyalty isn’t a given. We now need to earn it. Big data – the volume, velocity and variety of data is growing exponentially and with this, the technology needed to turn this data into relevant business decisions is becoming overly complex. Understanding which data to use to get the most valuable insight, and manage it over time, is becoming more and more difficult. Regulations – regulatory requirements are ever changing and increasing in complexity. Compliance isn’t an option. It takes tremendous effort, is costly and draws attention away from customers. Doing it all without compromise is expensive and takes an increasing number of resources. Doing what’s required, and staying ahead of what’s to come, can be the difference between profitability and losses. Being able to streamline the compliance process with confidence is key. Data Security – The explosion of data, along with emerging use of digital channels, is increasing the risk of fraud and breach, putting extreme pressure on how you’re securing and protecting your customer’s identity information. Failure to secure customer information can put your brand at risk and impact customer trust and loyalty as well as costs. Efficiency – Efficiency – is all about the bottom line and margins and can speak to how quickly you are able to deploy new technologies to you’re ability to respond to the increasing demands of your customer faster than your competitors and to do so in a frictionless way that is fast and easy for the customer. Each of these affects your business. And ultimately it affects your customers. So is there solution to solve or take advantage of these issues?
- #6 There is a lot of change taking place in our market. (Pick several based on prospect/client interest) Digital world – digital is the hear and now. We’re all moving to the digital channel and with that comes new data, tools and approaches to reaching new and existing customers. Understanding and keeping up is complex and time consuming which takes our focus off of what we do best…meet client needs. Consumer demands – the emergence of digital has made it easier for consumers to buy just about anything, anywhere, anytime. Convenience is king and making it easy to do business is imperative. Your competitive advantage has shifted from what’s the best rate, to how to best engage and respond to consumers quickly. This also means is the old saying, “once a customer always a customer”, is no longer valid. Customer loyalty isn’t a given. We now need to earn it. Big data – the volume, velocity and variety of data is growing exponentially and with this, the technology needed to turn this data into relevant business decisions is becoming overly complex. Understanding which data to use to get the most valuable insight, and manage it over time, is becoming more and more difficult. Regulations – regulatory requirements are ever changing and increasing in complexity. Compliance isn’t an option. It takes tremendous effort, is costly and draws attention away from customers. Doing it all without compromise is expensive and takes an increasing number of resources. Doing what’s required, and staying ahead of what’s to come, can be the difference between profitability and losses. Being able to streamline the compliance process with confidence is key. Data Security – The explosion of data, along with emerging use of digital channels, is increasing the risk of fraud and breach, putting extreme pressure on how you’re securing and protecting your customer’s identity information. Failure to secure customer information can put your brand at risk and impact customer trust and loyalty as well as costs. Efficiency – Efficiency – is all about the bottom line and margins and can speak to how quickly you are able to deploy new technologies to you’re ability to respond to the increasing demands of your customer faster than your competitors and to do so in a frictionless way that is fast and easy for the customer. Each of these affects your business. And ultimately it affects your customers. So is there solution to solve or take advantage of these issues?
- #7 There is a lot of change taking place in our market. (Pick several based on prospect/client interest) Digital world – digital is the hear and now. We’re all moving to the digital channel and with that comes new data, tools and approaches to reaching new and existing customers. Understanding and keeping up is complex and time consuming which takes our focus off of what we do best…meet client needs. Consumer demands – the emergence of digital has made it easier for consumers to buy just about anything, anywhere, anytime. Convenience is king and making it easy to do business is imperative. Your competitive advantage has shifted from what’s the best rate, to how to best engage and respond to consumers quickly. This also means is the old saying, “once a customer always a customer”, is no longer valid. Customer loyalty isn’t a given. We now need to earn it. Big data – the volume, velocity and variety of data is growing exponentially and with this, the technology needed to turn this data into relevant business decisions is becoming overly complex. Understanding which data to use to get the most valuable insight, and manage it over time, is becoming more and more difficult. Regulations – regulatory requirements are ever changing and increasing in complexity. Compliance isn’t an option. It takes tremendous effort, is costly and draws attention away from customers. Doing it all without compromise is expensive and takes an increasing number of resources. Doing what’s required, and staying ahead of what’s to come, can be the difference between profitability and losses. Being able to streamline the compliance process with confidence is key. Data Security – The explosion of data, along with emerging use of digital channels, is increasing the risk of fraud and breach, putting extreme pressure on how you’re securing and protecting your customer’s identity information. Failure to secure customer information can put your brand at risk and impact customer trust and loyalty as well as costs. Efficiency – Efficiency – is all about the bottom line and margins and can speak to how quickly you are able to deploy new technologies to you’re ability to respond to the increasing demands of your customer faster than your competitors and to do so in a frictionless way that is fast and easy for the customer. Each of these affects your business. And ultimately it affects your customers. So is there solution to solve or take advantage of these issues?
- #9 Title slide [uses Title Slide (Background Image) layout] The brand mark and data art graphic on this slide layout are set up at the correct size and position and should not be altered. The presentation title appears in Arial (Experian Dark Blue); other presentation details should be in Arial (Grey) and separated by a single line space, as shown in this example. It is important to ensure that the title and supporting text is always fully legible on an image background. The background image has been placed in the slide layout master as a ‘background fill’; this can be edited by right-clicking the background image area and choosing ‘Format Background…’ from the context menu to replace the image. The full-colour brand mark and data art graphic must always appear on a light-coloured background with maximum legibility; image backgrounds should be carefully selected with this in mind.
- #11 Eric Text slide [uses Title and Content layout] The headline appears in Arial (Experian Dark Blue) at 34pt. If a sub headline is required, it should be manually sized to 20pt. The text has five pre-set levels in 17pt Arial, to a maximum width of 23.4cm: Level 1 – ranged to the left margin for continuous text; if you require a bold subheading you can embolden this to 17pt Arial Bold Level 2 – ranged to the left text margin with a round bullet, subsequent lines aligning with the text of the previous line Level 3 – horizontal dash bullet, subsequent lines aligning with the text of the previous line Level 4 – round bullet, subsequent lines aligning with the text of the previous line Level 5 –horizontal dash bullet, subsequent lines aligning with the text of the previous line Advancing through the text levels can be done by using the ‘Increase List Level’ and ‘Decrease List Level’ buttons in the ‘Paragraph’ tools on the ‘Home’ ribbon. If your text content exceeds the depth of the text box, you may need to consider creating an additional slide. The brand mark on this slide layout is set up at the correct size and position and should not be altered. The date and footer info can be edited across all slides by using the ‘Header and Footer’ settings on the ‘Insert’ ribbon (do not edit these manually on the individual slides).
- #32 There is a lot of change taking place in our market. (Pick several based on prospect/client interest) Digital world – digital is the hear and now. We’re all moving to the digital channel and with that comes new data, tools and approaches to reaching new and existing customers. Understanding and keeping up is complex and time consuming which takes our focus off of what we do best…meet client needs. Consumer demands – the emergence of digital has made it easier for consumers to buy just about anything, anywhere, anytime. Convenience is king and making it easy to do business is imperative. Your competitive advantage has shifted from what’s the best rate, to how to best engage and respond to consumers quickly. This also means is the old saying, “once a customer always a customer”, is no longer valid. Customer loyalty isn’t a given. We now need to earn it. Big data – the volume, velocity and variety of data is growing exponentially and with this, the technology needed to turn this data into relevant business decisions is becoming overly complex. Understanding which data to use to get the most valuable insight, and manage it over time, is becoming more and more difficult. Regulations – regulatory requirements are ever changing and increasing in complexity. Compliance isn’t an option. It takes tremendous effort, is costly and draws attention away from customers. Doing it all without compromise is expensive and takes an increasing number of resources. Doing what’s required, and staying ahead of what’s to come, can be the difference between profitability and losses. Being able to streamline the compliance process with confidence is key. Data Security – The explosion of data, along with emerging use of digital channels, is increasing the risk of fraud and breach, putting extreme pressure on how you’re securing and protecting your customer’s identity information. Failure to secure customer information can put your brand at risk and impact customer trust and loyalty as well as costs. Efficiency – Efficiency – is all about the bottom line and margins and can speak to how quickly you are able to deploy new technologies to you’re ability to respond to the increasing demands of your customer faster than your competitors and to do so in a frictionless way that is fast and easy for the customer. Each of these affects your business. And ultimately it affects your customers. So is there solution to solve or take advantage of these issues?
- #33 Closing slide [uses Holding Slide layout] This slide can be used as a ‘closing’ slide and should not include any additional text or graphics. The same slide layout is used as a presentation opening slide. The brand mark and data art graphic on this slide layout are set up at the correct size and position and should not be altered.